Angel Securities views on CESC, Cadila Healthcare

Angel Sec on Cadila Healthcare - Target Rs 634

 

Angel Securities is bullish on Cadila Healthcare and has recommended buy rating on the stock with a target of Rs 634, in its research report.

"Cadila Healthcare (Cadila), one of the most diversified Pharma companies in our coverage universe, continued its strong performance and reported good set of numbers for 4QFY2010 driven by the Export Formulation Segment, viz. the US and Europe. On the Domestic Formulation front, the company hired 600 sales force during FY2010 to increase the penetration-led growth in the market and is now targeting 15% growth. For FY2011E, the company has guided for USD 1 billion on the Top-line front, implying a growth of 27-28% with OPM improvement of 100bp from current levels of 19.5%. We recommend a Buy on the stock," says Angel Securities research report.

Angel Securities on CESC - Target Rs 460

 

Angel Securities is bullish on CESC and has recommended buy rating on the stock with a target of Rs 460, in its research report.

"CESC recorded a 2.1% yoy growth in net sales to Rs770cr in 4QFY2010, aided by a 1.7% yoy increase in the sales volume. The growth in the Top-line is expected to be aided by a higher tariff of Rs4.57/unit charged by the company in 4QFY2010 (Rs3.91/unit in 4QFY2009) in the regulated area. During FY2010, the Top-line grew by 8% to Rs 3,351 crore. The company's OPM improved by 409bp yoy to 26% during the quarter, aided by a substantial reduction in other expenses. The net profit rose by 6.4% yoy to Rs 100 crore during the quarter. The stock trades at a P/E of 7.4x and at a P/BV of 1.0x, according to its FY2012E estimates. We maintain our Buy recommendation," says Angel Securities research report.