Buy Cadila Healthcare; target of Rs 495: HDFC Securities

HDFC Securities is bullish on Cadila Healthcare has recommended buy rating on the stock with a target price of Rs 495 in its research report dated August 16, 2018.

Broker Research

September 18, 2018 / 13:28 IST

26 Aug, 2025 12:21

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HDFC Securities' research report on Cadila Healthcare

Cadila (CDH) continues to be at pace with double-digit YoY growth which started in 2QFY18. In 1QFY19, CDH reported revenue at Rs 28.9bn showing a growth of 32%YoY. EBITDA at Rs 6.4bn and PAT at Rs 4.6bn were up 133% and 233% YoY respectively. EBITDA margin came in at 22.3%, improving ~1000bpsYoY. This growth was primarily driven by the US and India businesses which were up 27% and 40% YoY respectively. Other major segments including LATAM and ROW markets and consumer wellness, animal health, and API businesses also saw double digit growth. Sequential decline was primarily due to poor flu season in the US which affected Tamiflu sales.

Outlook

We believe these triggers will result in a CAGR of 5% in revenue and 27% in PAT on a high base over FY18-FY20E. With a revised TP of 495 (24x on FY20E EPS), we maintain BUY.

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