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LORD JESUS CHRIST SAYS

Jesus replied: “ ‘Love the Lord your God with all your heart and with all your soul and with all your mind.’ This is the first and greatest commandment. And the second is like it: ‘Love your neighbor as yourself.’ All the Law and the Prophets hang on these two commandments.” Matthew 22:37-40

18 Jan 2019

STOCK MARKET--Cadila Healthcare may test Rs 435: Anand Rathi


Cadila Healthcare is one of the top three in gynaecology, respiratory, pain management, CVS and dermatology.
We believe a pick-up in market share of gToprol, launches and the launched Asacol HD (own version) would help maintain Cadila’s margins
and earnings ahead. On the high base, we expect 8 percent and 9 percent CAGRs over FY18-21 in revenue and earnings respectively.
The company expects 40-50 launches annually and is focusing on vaccines and biologics – which could be future growth drivers.
It has strong ANDA pipeline in the US, with 144 filings awaiting approval of which 60+ are Para IV. It launched 20 products in the year,
including g Lialda and gTamiflu and received 77 approvals in FY18, bringing cumulative filings/approvals to 330/186.
The company has recently announced it is considering fund raising proposals of up to Rs 10,000 Cr via QIP & up to Rs 5,000 cr via FCCBs.
We expect 11 percent and 17 percent CAGRs over FY18-20 in revenue & earnings respectively, our target price is based on 21x FY20e EPS of23.30.


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