Motilal Oswal has given Buy on the stock with a revised price target ( recommendation for Cadila Healthcare with a target price of Rs. lal Oswal is bullish on Cadila Healthcare has recommended buy on the stock with a revised price target (PT) of Rs. 490 in its research report issued on Feb 04, 2022

Outlook

We cut our EPS estimates by 2%/4%/4% for FY22E/FY23E/FY24E and reduce PE multiple to 21x (from 25x earlier) to factor in a) moderate growth in the US business over the medium term and b) the weaker outlook on the vaccine opportunity given the easing of the COVID situation. Accordingly, we arrive at TP of INR490 on a 12M forward earnings basis. It is trading at attractive valuations of 18.5x/17x in FY23E/FY24E. Also, potential levers such as certain limited-competition product launches and the favorable outcome of clinical trials related to NCE products are yet to be captured in the estimates. Hence, we maintain a BUY rating on the stock.

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