For 3QFY2016, Cadila Healthcare (Cadila) posted a robust performance on the net profit front while sales came in lower than expected. Sales came in at Rs2,342cr (V/s Rs2,600cr expected), growing by 8.4% yoy. On the operating front, the OPM came in at 21.0% V/s 21.4% expected and V/s 19.3% in 3QFY2015. The expansion in the OPM was driven by expansion in the GPM to 65.9% V/s 64.8% in 3QFY2015 and almost flat growth in staff and other expenditure. R&D; expenditure during the quarter came in at 10.1% V/s 8.7% of sales in 3QFY2015. The net profit came in at Rs389cr V/s Rs353cr expected and V/s Rs282cr in 3QFY2015, a yoy growth of 38.2%. The Adj. net profit came in at Rs390cr V/s Rs278cr in 3QFY2015, a yoy growth of 40.0%. We maintain our Accumulate on the stock. Results better than expected at the net profit level: For 3QFY2016, sales came in at Rs2,342cr (V/s Rs2,600cr expected), growing by 8.4% yoy. On the operating front, the OPM came in at 21.0% V/s 21.4% expected and V/s 19.3% in 3QFY2015. The expansion in the OPM was driven by expansion in the GPM to 65.9% V/s 64.8% in 3QFY2015 and almost flat growth...