172@29@17@247!~!172@29@0@53!~!|news|business|stocks|sell-cadila-healthcare-target-of-rs-329-prabhudas-lilladher-5663311.html!~!news|moneycontrol|com!~!|controller|infinite_scroll_article.php!~!is_mobile=false
Moneycontrol
Subscribe to Moneycontrol Pro and get 365 bonus InterMiles! Use Code: INTERMILES
Last Updated : Sep 25, 2020 05:53 PM IST | Source: Moneycontrol.com

Sell Cadila Healthcare; target of Rs 329: Prabhudas Lilladher

Prabhudas Lilladher is bearish on Cadila Healthcare has recommended sell rating on the stock with a target price of Rs 329 in its research report dated August 06, 2020.

Broker Research

Prabhudas Lilladher's research report on Cadila Healthcare


1QFY21 revenue was in-line with our estimate but EBITDA and EBITDAM were beat due to decline of SG&A 17% YoY. We believe its foray into COVID related products has diverted its focus from core business when its top revenue contributors (India, US Gx) have been lacking consistency. With HCQ already no longer preferred for COVID treatment and multiple players in Remdesivir, its ambitious COVID vaccine project might also be disappointing as world class innovators are far ahead in the race. We also believe its investment in specialty products may not be as rewarding as expected by management.


Outlook


Hence we change our rating to SELL (earlier Reduce) but retain our TP of Rs329 based on 18x PE of FY22E.


For all recommendations report, 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.

First Published on Aug 8, 2020 12:34 pm
Sections