February 02, 2017 / 15:23 IST
HDFC Securities' research report on Cadila CDH’s 3Q performance was unimpressive, with EBITDA margin declining 750bps YoY to 17.1% and earnings de-growing 35% YoY to Rs 2.8bn. This was largely on account of steep price erosion in the US base business. The top line was relatively better (-2% YoY), supported by the sales of recently launched Asacol AG.
OutlookTo adjust this impact on the US business profitability, we cut our earnings by 12% in FY17E. However, we expect a sharp recovery once Moraiya facility is cleared by US FDA in FY18E. Maintain BUY with a revised TP of Rs 385 (20x on Sep-18E).
For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 
Read More
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
