Sharekhan recommended Hold rating on Cadila Healthcare with a target price of Rs 290 in its research report dated May 29, 2019.
Sharekhan's research report on Cadila Healthcare
Q4FY2019 performance below expectation, high interest cost (due to increased debt to fund Heinz India acquisition) dented profitability. We expect Cadila to deliver sales and profit CAGR of modest 11% and 9%, respectively, over FY2019-FY2021. Margins are likely to remain under pressure as the company witnesses competitive pressure in its niche launches. We have revised downwards our earnings estimates by 15% each for FY2020E and FY2021E.
We maintain our Hold recommendation on the stock with lowered PT of Rs. 290.
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