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Hold Cadila Healthcare; target of Rs 420: Bonaz Capital

Cadila’s (CDH) Q4 revenue at Rs 25.2 bn (up 6% YoY) and EBITDA at Rs 4.6 bn (down 16% YoY) were in line with estimates. PAT at Rs 3.85 bn was aided by higher other income and lower tax expense. US sales grew 2% YoY (11% QoQ) to USD 146 mn aided by consolidation of Sentynl. India revenue grew 9% YoY, led by increased traction in biosimlar products.Bonaz Capital

Outlook

We maintain our FY18E/19E EPS estimates &TP of Rs 420(20x FY19 EPS). While its large US pipeline (195 ANDA’s awaiting approval) remains attractive, maintain HOLD as it is fairly priced in our view.