ICICI Direct has given Buy recommendation for Cadila Healthcare with a target price of Rs. 555 in its research report issued on Feb 06, 2021
ICICI Direct’s research report on Cadila Healthcare
Q3FY21 revenues grew 4.3% YoY to Rs 3796 crore (I-direct estimate: Rs 3906 crore). Domestic formulations posted strong growth of 21.2% YoY to Rs 1104 crore. However, US sales declined 4.3% YoY to Rs 1603 crore. Wellness segment also grew a robust 15.8% YoY to Rs 376 crore. Emerging markets grew 10.9% YoY to Rs 293 crore. API segment de-grew 18.8% YoY to Rs 132 crore. Animal health segment grew 17.0% YoY to Rs 163 crore. EBITDA margins expanded 220 bps YoY to 21.3% (I-direct estimate: 21.2%) due to a better overall operational performance. Subsequently, EBITDA grew 16.4% YoY to Rs 807 crore (I-direct estimate: Rs 828 crore). Adjusted PAT grew 40.5% YoY to Rs 527 crore (I-direct estimates: Rs 495 crore).
We maintain BUY and arrive at our TP of Rs 555 (unchanged) based on 22x FY23E EPS of Rs 25.2.
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