Cadila Healthcare share price was trading lower on Thursday after the company reported earnings for the quarter ended June 2020.
Cadila Healthcare reported a 4.11% YoY growth in consolidated net revenue to Rs 3,696 crore for Q1FY21 from Rs 3,496.3 crore in Q1FY20. The company registered a 50% growth in its net profit at Rs 454 crore in Q1FY21 from Rs 303.6 crore.
Following the result update, Cadila Healthcare shares fell 1.57% to the intraday low of Rs 389.55 on BSE against the earlier close of Rs 395.95. The stock also hit an intraday high of Rs 401.80 during today's session, after opening at Rs 396. The stock price of Cadila Healthcare has fallen 2.28% in the last 2 days of decline.
Shares of Cadila Healthcare have risen over 8% in one month and 54% in one year. Cadila Healthcare stock is trading higher than its 5, 20, 50, 100 and 200-day moving averages.
"The company's India business which comprises human formulations, consumer wellness and animal health business posted sales of Rs 1,486 crore during the quarter," the regulatory filing said.
On Cadila Healthcare's Q1 results, Jyoti Roy, DVP Equity Strategist, Angel Broking said, "The company's numbers were impacted during the quarter to the extent of Rs 45.2 crore due to impairment of goodwill for one of its subsidiary companies. The total exceptional loss for the quarter stood at Rs 52.5 crore. During the year the company filed 30 ANDAs in FY2020, taking cumulative filling to 390 ANDAs. The company also received 28 ANDA approvals during the year, taking total product approvals to 282."
In terms of stock rating, Citi has maintained a 'Sell' call on Cadila Healthcare. The brokerage said Cadila's growth is likely to remain subdued over the full year. It maintained a 'Sell' on concerns over high product concentration in the US.
Meanwhile, Cadila's Q1 EBITDA was ahead of Nomura's estimate on lower costs but the brokerage has concerns about the near-term outlook. Nomura is 'Neutral' on the stock.
Motilal Oswal, on the other hand, gave 'Buy' rating at the target price of Rs 460 and raised EPS estimates for FY21/FY22E by 10%/9% on the stock to reflect margin improvement and pickup in DF sales.