Zydus Lifesciences Ltd. share price target

Maintain BUY with a revised TP of Rs 505 (24x on Dec-19E EPS). Cadila (CDH) followed up its strong 2QFY18 numbers with another superlative performance in 3QFY18. The top-line came in at Rs 32.6bn, up 41% YoY and ~10% ahead of estimates. This was largely driven by sales of gLialda under exclusivity and gTamiflu under limited competition. EBITDA was Rs 8.4bn, up 108% YoY. The margin was 25.8%, up 831bps YoY and ~120bps ahead of estimates, driven by operating leverage and sales of limited competition products in the US. PAT was Rs 5.4bn, up ~68% YoY, also ~10% above estimates.

ICICI Securities Ltd | Retail Equity Research Revenues increased 38% YoY to | 3260 crore (I-direct estimate: | 3187 crore) mainly due to 79% increase in US sales to | 1584 crore...

Cadila results were above our estimates, sales were at Rs31.9bn (est. Rs30bn) mainly due to better than expected sales in the US markets. EBITDA margins at 24.2% (est. 25%) for Q3FY18 given some one-off at line-items due to the changes. PAT was at Rs5.4bn (est. Rs5bn) up 67.7% YoY.While the Gross margins have risen to 64.8% Vs 60% in Q3FY17, given the strong launches. EBITDA margins were at 24.2%. Given all the regions supporting growth, improvement in the sales mix to support better margins and cost curtailment, however, 1/3 of approved products not yet launched in US, we have revised up our Sales/EBITDA/EPS for FY18 by...

Cadila Healthcare posted good set of numbers for 2QFY2018. Sales came in at `3,155cr (`2,800cr expected) v/s. `2,336cr in 2QFY2017, a yoy growth of 35.0%, mainly driven by 66.2% growth in sales of US formulations. On operating front, the EBITDA margins came in at 24.7% (21.3% expected) v/s. 21.4% in 2QFY2017, on the back of higher than ex..

Cadila's Q2 EBITDA (+67% YoY, 22% above our estimate) was driven by gLialda (~USD 80-90 mn in our view) in US. EBITDA margin was up 520 bps YoY/1,405 bps QoQ at 26.5% on positive operating leverage, as India sales also grew 9% YoY. PAT at Rs 5.03 bn was in line with estimates on higher tax expense..

Domestic Biz Recovers; US Biz to See Strong Traction Led by strong recovery in domestic formulations business and robust performance in the US business, Cadila Healthcare (CDH) has delivered a better-than-expected performance in terms of sales and EBITDA in 2QFY18. While its revenues came in at Rs32.3bn vs. our estimate of Rs 28.9bn, EBITDA stood at Rs8.6bn vs. our estimate of Rs 7.5bn. PAT at Rs5.0bn missed our estimate of Rs 5.4bn due to higher interest cost and tax rate. EBITDA margin came in at 26.5% vs. 21.9% in 2QFY17 and 12.6% in 1QFY18 led by launch of gLialda in the US and strong recovery in domestic business. CDH's US business grew by 71% YoY and 70% QoQ growth (in...

EBITDA margins improved 503 bps to 26.5% (I-direct estimate: 26.0%), mainly due to gLialda launch under exclusivity. EBITDA increased 66% YoY to | 857 crore (I-direct estimate: | 799 crore) PAT increased 32% YoY to | 503 crore (I-direct estimate: | 609 crore) due to the strong operational performance, which was partly offset by higher tax rate (29.8% vs | 14.8% in Q2FY17) US momentum improves with Moraiya EIR, expansion of other facilities The US (41% of revenues) has grown at a CAGR of 25% in FY13-17...

Maintain BUY with a revised TP of Rs 540 (24x on Sep-19E). Cadila (CDH) capitalised on strong tailwinds (sales of gLialda under exclusivity and channel-restocking in the domestic business), delivering stellar numbers in 2QFY18. The top-line came in at Rs 32.3bn, up 37% YoY and slightly ahead of estimates. EBITDA was Rs 8.6bn, up 66% YoY. The margin was 26.5%, up ~460bps YoY and ~190bps ahead of estimates, driven by sales of gLialda and operating leverage. PAT was Rs 5bn, up 49% YoY, slightly below estimates owing to a higher-than-anticipated tax outgo (~30%).

While the Gross margins have risen to 65.1% Vs 63.9% in Q2FY17, given the strong launches it looked a bit muted. EBITDA margins were at 24.7% We reduce our FY18E/19E estimates and TP (Rs505, 22x FY19E EPS). Key Highlights and Investment Rationale...

attributed to strong growth in the US and a recovery in domestic business sales. PAT rose 49% YoY to INR5b (5% beat). Strong growth in US driven by key launches: US business rose 66% YoY (+70% QoQ) to INR16.4b, led by Lialda launch. Lialda sales are likely to decline due to AG launch, but ramp-up of Tamiflu suspension and other key launches (incl. Asacol HD, Toprol XL, Prevacid ODT) should help maintain strong growth. Post successful resolution of Moraiya facility, we expect ~80 ANDA approvals until FY19 for CDH. ~50% of these are expected to come...