Hold Cadila Healthcare target of Rs 275: Sharekhan
Sharekhan’s research report on Cadila Healthcare
Management has guided for double-digit growth in the U.S. business in 2HFY2020, while India business is expected to grow at a healthy pace. Cadila’s Q2FY2020 results were weak and missed our estimates. We have cut our FY20/FY21 earnings estimates to factor in the same. Though the stock is trading at a reasonable valuation of 15.9x / 14.7x FY20/FY21 estimates, regulatory issues and elevated competition in key product segments is on overhang and would restrict use from taking a constructive view on the stock.
We retain our Hold Recommendation on Cadila Healthcare with an unchanged PT of Rs 275.
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