Moneycontrol PRO
Upcoming Event:Attend Algo Convention Live, 2 Days & 12+ Speakers at best offer Rs.999/-, exclusive for Moneycontrol Pro subscribers. Register now!

Reduce Cadila Healthcare; target of Rs 408: Dolat Capital

Dolat Capital recommended reduce rating on Cadila Healthcare with a target price of Rs 408 in its research report dated August 14, 2020.

November 27, 2020 / 01:33 PM IST

Dolat Capital's research report on Cadila Healthcare

Cadila continues to bear heavy debt and high intangible assets from FY19 (acquisition of Heinz by its subsidiary Zydus Wellness). Hence, total intangibles remain high at Rs68bn, 65% of net worth, mainly due to the surge in goodwill from Rs14bn to Rs53bn in FY19 and Rs54bn in FY20. Other findings: i) Currency translation loss (FCTR) shot up by Rs4.3bn, out of which Rs2.8bn impacted cash flow. iii) Other operating income and other income together flared up to Rs10bn, 67% of PBT (FY19: 45% of PBT). iv) The cash tax rate lowered from 28% to 16% in FY20, whereas the P&L tax rate dipped from 22% to 17%. v) Net debt marginally lowered to Rs66bn, as cash and investments grew 41% YoY; net debt/EBITDA, thus, rose to 2.4x in FY20.


The company exhibited a CAGR of 16% in top-line and 23% in profits, since inception. Strong focus on brand building, product innovation, go-to-market strategy, cost management should help Marico navigate through challenging business conditions.

For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes

Broker Research
first published: Aug 17, 2020 05:05 pm
ISO 27001 - BSI Assurance Mark