Please refer to important disclosures at the end of this report
1
Cadila Healthcare Limited (CHL) is an India-based pharmaceutical company.
The Company's subsidiaries include Zydus Wellness Limited, Biochem
Pharmaceutical Industries Limited, Dialforhealth Greencross Limited and fe
w
others. Despite being a late entrant in the US market, the company has achieved
significant scalability. The launches of authorised generics on behalf of US
companies also contributed to overall growth. The company plans to file 40
ANDA in FY17. In the domestic market, the company has launched 15 ne
w
products in Q2FY17, including line extension in India, of which 4 were for the
first time introduced in India. The company has also received 3 vaccines
approvals from Indian regulatory authority, which CHL expects to launch in
FY18. CHL is expecting to get 7 USFDA approvals by December 2016 except the
Moraiya plant. The company has received EIR from USFDA for the Moraiya
facility although the warning letter is yet to be closed. Despite the warning lette
r
received at Moraiya plant, US business would remain a key driver on the back o
f
proposed launches of 12-15 products in FY17 including recently launched
gAsacol by CHL. Favourable ruling and timely FDA approval of gLiadla can be
significant opportunity for CHL to improve its financial performance in years to
come. The company has reported a healthy Return on Equity (ROE) of 25%+ fo
r
the last 5 years. Hence Buy.
BUY
CMP `392
Stock Info
Sector
Beta 0.7
Bloomberg Code
Shareholding Pattern (%)
Promoters 74.8
MF / Banks / Indian Fls 9.2
FII / NRIs / OCBs 10.4
Indian Public / Others 5.7
Abs. (%) 3m 1yr 3yr
Sensex (7.6) 0.3 25.5
Cadila Healthcare 7.4 (4.0) 166.5
Reuters Code CADL.BO
1
BSE Sensex 25,860
Nifty 7,966
Face Value (
`
)
Pharmaceuticals
Market Cap (
`
cr) 40,586
52 Week High / Low 429/296
Avg. Daily Volume 1,33,874
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Cadila Healthcare
Others | Pharmaceuticals
November 25, 2016
Cadila Healthcare | Pharmaceuticals
November 25, 2016
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
p
eriod
)
: Reduce
(
-5% to -15%
Sell
(
< -15
)