Zydus Lifesciences Ltd. share price target

CDH’s US?based 100% subsidiary will launch mesalamine delayed?release tablets (800 mg, Asacol HD) as an authorised generic (AG) in the US, starting August 1 this year. We now estimate the product to add incremental sales of about US$ 55/105mn in FY17/18 (had earlier assumed delayed launch in H2FY17 and sales of ~US$ 40/85mn). Although we are modelling higher sales, it does not really excite us because CDH missed the opportunity of launching generic mesalamine under its own ANDA due to lack of a timely approval. If it could have launched under its own ANDA, the profit potential would have been 3?4x higher (in an exclusive?like scenario, as there were no visible filers). Nonetheless, to factor in higher sales, we upgrade our FY17/18 estimates by 2%. While the recent EIR on its Moraiya plant has certainly improved the visibility for clearance by the USFDA, a ramp up in its ANDA approval flow will be subject to final closure of the warning letter (mostly after a re?inspection). Hence, do not see a rerating for CDH anytime soon (value it at Rs 390, 20x FY18 EPS, vs. Rs 380 earlier). With limited visible upside, Phillip Capital downgrade to Neutral.

Trendlyne has 11 reports on CADILAHC updated in the last year from 5 brokers with an average target of Rs 369.4. Brokers have a rating for CADILAHC with 1 downgrade,4 price downgrades,2 upgrades and 1 price upgrade in past 6 months.

For 4QFY2016, Cadila Healthcare (Cadila) posted a robust performance on the net profit front while sales came in lower than expected. Sales came in at Rs2,376cr (V/s Rs2,400cr expected), growing by 5.7% yoy. On the operating front, the OPM came in at 21.4% V/s 21.1% expected and V/s 20.2% in 4QFY2015. The expansion in the OPM was driven b..

ICICI Securities Ltd | Retail Equity Research Revenues grew 7% YoY to | 2449.1 crore (I-direct estimate: | 2488.8 crore) driven by 12.9% YoY in India to | 767.4 crore (I-direct...

9 JV business saw strong 25%/14% growth for Q4/FY16. However, it guides for flattish revenueperformancefromitsJVbusinessinFY17 9 CDHindicatestocompletelargepartofremedialactionsbyMay2016atitsproblematic...

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...

Cadila reported a strong 3QFY16. A 335bps of QoQ improvement in EBITDA margin was driven by (1) 7% QoQ growth in the US, led by a few one-offs and HCQS, (2) Flat staff cost and (3) Other operating income of Rs 866mn (up 122% YoY). Higher R&D; (9.7% of sales) was offset by flat other expenses.

9 CDH management is optimistic about the quick resolution of Warning Letter on its Moraiyaplant.ItexpectcontinuedUSgrowthmomentumledbynewlaunchesfromits recentlyUSFDAapprovedalternateplantsatBaddiandAhmadabadSEZ....

quarters. Domestic formulation growth was at 10.5%. EBITDA margins saw 460bps expansion to 24.6% (higher than estimated 21.4%) on better business mix. There was 150bps/160bps margin surprise in materials/other expenses. Core PAT (adjusted for forex...