Key Business Segments:
Consumer product division– This is a healthcare division that has brands like Sugar Free, Nutralite and Everyuth. Its sugar-free has range of sugar substitutes; Nutralite is cholesterol-free bread spread and Everyuth has range of skincare products. It has more than 85% market share in Sugar free and Nutralite products and >30 % market share in Everyuth range.
Cadila Healthcare Limited Stock Price Fundamental & Technical Analysis
Overview of Cadila Healthcare as on August 30:
Cadila Healthcare Stock Fundamental Analysis:
YEAR ENDING MAR 17 – Cadila’s (CDH) 4Q performance below mark, with EBITDA margin declining 19.8% Yoy and earnings dipping 32% Yoy to Rs 3.8bn. This was largely owing to the steep price reduction in the US based business. The top-line was relatively better (~6% Yoy). Despite de-stocking issues, the domestic business also grew 9%YoY. As things stand, CDH is one of the few large pharma cos. that are currently free from regulatory overhang and possess a lucrative product pipeline, which we believe will begin to fructify starting FY18. Despite modest 4Q and FY17 numbers, there are numerous near-term triggers, such as clearance of the Moraiya warning letter, and key approvals for FTFs, topicals and transdermals. Going ahead, the outlook remains strong, with ~200 ANDAs pending approval and 50% filings in complex generics in US biz while growing in specialty space and upcoming launches in biosimilars and vaccines. CDH is expected to trade at a premium to peers, going ahead.
Quarter ended 30-06-2017- Cadila’s (CDH) 1Q performance was far below expectations as the stockist & other trade partners operated at lower inventory levels due to GST rollout on 1st July, 2017. Sales decreased by 4% yoy while Ebitda decreased 10% to 12.6% affecting Earnings reduced by 61% yoy to Rs 1.3 bn. On the positive side, the US business held its ground and remained flat QoQ with Growth of 14%YoY. Secondly, Monetization of niche pipeline from Moraiya has started with launch of gLialda – sole generic, gRelpax – 2 generics, and approval for gAsacol HD which would increase sales in US. There are numerous triggers in the near term, including launches like gAsacol HD, Prevacid ODT, Toprol XL and Exelon (transdermal patch). Company looks fundamentally strong and can provide good benefits going ahead so would be a good buy for a long term.
Cadila Healthcare Stock Technical analysis as on Aug 30 2017: