Cadila Healthcare: Brokerages Divided On Q4 Performance, Outlook

Analysts have mixed views on Cadila Healthcare Ltd. even as the Ahmedabad-based company reported growth in the fourth quarter and received emergency approval for Covid-19 drug.

Q4 Highlights

  • Total sales grew 2.5% year-on-year to nearly Rs 3,850 crore, led by domestic formulation segment and emerging markets.

  • India revenue, which makes up 47% of its total sales, grew 18% to around Rs 1,770 crore. Domestic business comprises of formulation, consumer wellness and animal health.

  • U.S. revenue, contributing 40% of total sales, declined 14.3% year-on-year to around Rs 1,509 crore because of a weak flu season, price erosion in the base portfolio and lower off take of anti-inflammatory drug Asacol.

  • Consolidated net profit of the drugmaker rose 73% to Rs 679 crore.

Cadila Healthcare managed to reduce its net debt by around Rs 3,200 crore to Rs 3,020 crore as of March. Around Rs 2,200 crore of the reduction came was from internal accruals and the rest from funds raised via preferential issue and qualified institutional placement.

The company’s Covid-19 drug Virafin recently got emergency use approval.

Shares of Cadila Healthcare fell as much as 2.29% to Rs 612.5 apiece before paring losses. Of the 34 analysts tracking the stock, 19 have a ‘buy’ rating, five suggest a ‘hold’ and 10 recommend a ‘sell’, according to Bloomberg data. The average of 12-month consensus price targets implies downside of 6.8%.

Here’s what analysts had to say about Cadila’s Q4 performance:

Continue Reading. Read more on Markets by BloombergQuint.

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