1
Please refer to important disclosures at the end of this report
1
1
Cadila Healthcare (CDH) is a well-diversified Pharma company with presence
across more than 100 countries in the world and among the few Indian players
to have presence in Consumer and Animal health businesses. Cadila Healthcare
(CDH) has received approval for gLialda, the first and one of the most significant
filings from Moraiya plant. Importantly, this development lends validation to
CDH’s other complex generic filings, especially gAsacol HD and others like
gToprol XL, gPrevacid ODT and transdermals. CDH aspires to more than double
its US base business (~USD550mn currently) over next 3 years by launching
~100 new products (~180 pending ANDAs). Key product launches include
gAsacol HD, gPrevacid ODT and gToprol-XL. Transdermal portfolio is expected
to start contributing in FY18. Through a mix of organic and inorganic initiatives,
the company also aims to build a specialty business tapping into opportunities
both near- (NDDS filings + small brand acquisitions in pain area) and long-
(own products in 3-4 therapeutic areas) term. The company has reported
consistent improvement in cash flow from operations from Rs 511.10cr in FY12
to Rs 1993.80cr in FY16. The company has a healthy return on equity (ROE) of
29.7% for the last 3 years. The company has been maintaining a healthy
dividend payout of 21.8%. With more productive.US pipeline awaiting approval,
hope of a strong earnings growth for Cadila in the next few years continues and
will support premium valuations. Hence Buy.
BUY
CMP `519
52 Week High / Low
558/329.95
Avg. Daily Volume
106,399
Pharmaceuticals
Market Cap (` cr)
52,938
1
BSE Sensex
32,037
Nifty
9,892
Face Value (`)
Reuters Code
CADI.NS
CDH:IN
1.0
Vaibhav Agrawal
022 3935 7800 Ext: 6808
[email protected]gelbroking.com
Cadila Healthcare Ltd.
Others | Pharmaceuticals
July 13, 2017
2
Cadila Healthcare | Pharmaceuticals
June 5, 2017
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Cadila Healthcare
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment period): Reduce (-5% to -15%) Sell (< -15)