Cadila Healthcare share price: Buy Cadila Healthcare, target price Rs 555: ICICI Direct

ICICI Direct has buy call on with a target price of Rs 555. The current market price of Cadila Healthcare Ltd. is Rs 500.4. Time period given by analyst is Intra Day when Cadila Healthcare Ltd. price can reach defined target.

Cadila Healthcare Ltd., incorporated in the year 1995, is a Large Cap company (having a market cap of Rs 50828.82 Crore) operating in Pharmaceuticals sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 3823.10 Crore, down -.63 % from last quarter Total Income of Rs 3847.50 Crore and up 4.51 % from last year same quarter Total Income of Rs 3658.20 Crore. Company reported net profit after tax of Rs 512.50 Crore in latest quarter.

Investment Rationale
Revenues are expected to grow 4% YoY to Rs 3904 crore with 20% YoY growth in domestic markets to Rs 1071 crore supported by Covid related products being mostly offset by 9.4% YoY de-growth in US to Rs 1595 crore amid weak flu season and competition in gLialda. Wellness is expected to grow 15% YoY to Rs 563 crore. EBITDA margins are likely to decline 59 bps YoY to 20.5% amid lower gross margins. However, net profit is expected to grow ~12% YoY to Rs 486 crore on the back of lower finance cost


Promoter/FII Holdings
Promoters held 74.9 per cent stake in the company as of Dec 30, 2020, while FIIs held 5.2 per cent, DIIs 11.9 per cent and public and other 8 per cent.

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