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Last Updated : Aug 10, 2020 01:00 PM IST | Source: Moneycontrol.com

Buy Cadila Healthcare; target of Rs 470: ICICI Direct

ICICI Direct is bullish on Cadila Healthcare has recommended buy rating on the stock with a target price of Rs 470 in its research report dated August 06, 2020.

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ICICI Direct's research report on Cadila Healthcare


Q1 revenues grew 4.1% YoY to Rs 3640 crore (I-direct estimate: Rs 3584 crore). US sales grew a robust 18.7% YoY to Rs 1623 crore. Domestic formulations de-grew 11.2% YoY to Rs 829 crore. Wellness segment de-grew 12.3% YoY to Rs 532 crore. API segment grew 89.2% YoY to 131 crore. EBITDA margins expanded 433 bps YoY to 22.4% (I-direct estimate: 19.4%) due to better gross margin performance and lower other expenses. Subsequently, EBITDA grew 29.0% YoY to Rs 815 crore (I-direct estimate: Rs 697 crore). PAT grew 49.4% YoY to Rs 454 crore (I-direct estimates: Rs 365 crore). Delta vis-à-vis EBITDA was mainly due to lower interest cost.


Outlook


We arrive at our target price of Rs 470 based on 22x FY22E EPS of Rs 21.3.


For all recommendations report, click here


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First Published on Aug 10, 2020 01:00 pm
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