Cadila Healthcare Slowing business momentum - Maintain Hold ::Emkay

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

Cadila Healthcare

Slowing business momentum - Maintain Hold

HOLD

CMP: Rs 760                                       Target Price: Rs 760

---

n     Muted revenue growth (up 11% YoY) to Rs12.4bn and poor operating performance (up 6% YoY) to Rs2bn resulted in 2% YoY de-growth in Adjusted PAT to Rs1.77bn

n     Muted revenue growth was due to 7% growth in domestic formulations, 5% growth in Consumer business and 5% in Europe business

n     Higher interest expenses because of increase in debt by ~Rs10bn to Rs20bn over the last 6 months. Company is looking for strategic investment in US

n     With business momentum slowing down and possibility of earnings downgrade going forward– we maintain Hold rating with a revised target price of Rs760 (17xFY13 EPS of Rs44.7)