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Cadila Healthcare Ltd. Stock Analysis

Large Cap
Evaluated by 5848 users | BSE: 532321 | NSE: CADILAHC |
Pharmaceuticals & Drugs

Cadila Healthcare Limited, a company limited by shares, incorporated and domiciled in India, operates as an integrated pharmaceutical company with business encompassing the entire value chain in the research, development, production, marketing and...

1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Cadila Healthcare Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 24.98%19%14.15%14.34%17.95%25.59%14.71%13.75%11.31%8.46%
Value Creation Index 1.160.720.290.300.631.330.270.19-0.04-0.28
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 4,6315,2636,3587,2248,6519,4279,37711,95513,16614,253
Y-o-Y Gr. Rt.-13.7%20.8%13.6%19.8%9%-0.5%27.5%10.1%8.3%
Adjusted EPS (Rs.) 6.956.456.417.9811.2418.8214.3717.2817.413.9
Y-o-Y Gr. Rt.--7.2%-0.6%24.5%40.9%67.4%-23.7%20.3%0.7%-20.1%
Book Value per Share (Rs.) 21.2125.2528.7533.5841.5255.6667.9785.4101.43101.33
Adjusted Net Profit 7126606568171,1511,9271,4711,7691,7811,423
Net Op. Cash Flow (Rs. Cr.) 6835116039039941,8941,3129191,2822,505
Debt to Cash Flow from Ops 1.64.484.842.992.671.293.975.886.163.19
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Cadila Healthcare Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 13.3%10.5%15%8.3%
Adjusted EPS 8%4.3%-1.1%-20.1%
Book Value per Share 1919.514.2-0.1
Share Price 13.1% 0.9% -1% 72.4%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 37.4527.7523.7425.5829.9338.7223.2422.5318.6213.71
Operating Profit Margin (%) 21.9720.8617.7516.5520.3424.7220.2923.6822.6819.61
Net Profit Margin (%) 15.9113.0810.911.7513.7420.315.6414.5613.559.98
Debt to Equity 0.50.890.990.790.620.430.750.620.760.77
Working Capital Days 139158155155153158178184213210
Cash Conversion Cycle 44727465615062769799
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 74.88%
Institutions 16.88%
Non-Institutions 8.05%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Cadila Healthcare Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Cadila Healthcare Ltd. is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Cadila Healthcare Ltd.'s performance infers:

Cadila Healthcare Ltd. earnings have grown by 4.3%, whereas share price has appreciated 0.9% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Cadila Healthcare Ltd. share prices over the last 10 years. Here is what we found out:

Cadila Healthcare Ltd. share price has appreciated 10.8% annually over the past ten years.

Cadila Healthcare Limited, a company limited by shares, incorporated and domiciled in India, operates as an integrated pharmaceutical company with business encompassing the entire value chain in the research, development, production, marketing and distribution of pharmaceutical products. The product portfolio of the company includes Active Pharmaceutical Ingredients (API) and human formulations. The company’s shares are listed on the National Stock

Cadila Healthcare Limited, a company limited by shares, incorporated and domiciled in India, operates as an integrated pharmaceutical company with business encompassing the entire value chain in the research, development, production, marketing and distribution of pharmaceutical products. The product portfolio of the company includes Active Pharmaceutical Ingredients (API) and human formulations. The company’s shares are listed on the National Stock Exchange of India Limited (NSE) and BSE Limited.

The company’s initiatives in the areas of research and development span across the pharmaceuticals value chain, including New Chemical Entities (NCE), biologics, vaccines, specialty and complex generic formulations and API process development. The company has a global presence and sells its products in the United States, India, Europe and emerging markets including countries in Latin America, Asia Pacific region and Africa. The company has a pool of modern, cost efficient and regulatory compliant manufacturing facilities which ensures continuous supply of high quality products at the most competitive prices to its customers across the globe.

Business area of the company

The company is one of the leading innovation driven pharmaceutical companies in India with presence across the pharmaceutical value chain of innovating (research & development), manufacturing, marketing and selling of finished dosage human formulations (generics, branded generics and specialty formulations, including biosimilars and vaccines), active pharmaceutical ingredients (APIs), animal healthcare products and consumer wellness products. Innovation is the backbone of the company as it ensures business sustainability through continuous availability of new products for various businesses.

Business verticals / products

  • Human Health Formulations
  • Consumer Wellness
  • Animal Healthcare

Awards

2008-09:

  • The Company received the 'Social and Corporate Governance Awards 2008' in the 'Best Social Responsibility Practice' category presented by the BSE, NASSCOM Foundation and Times Foundation jointly.

2009-10:

  • Received the 'IMAI OE Award for the Pioneering and Paradigm Shifting Applications of OE in Tablet Manufacturing' by the KAIZEN Institute.
  • Received the 'Best-In-Class Manufacturing Award (Pharma Sector)' by Stars of the Industry Awards.

2010-11:

  • Declared the ‘Emerging Company of the Year’ by the Economic Times Awards for Corporate Excellence 2010.

2011-12:

  • Zydus Research Centre, Ahmedabad has achieved the full AAALAC accreditation for the fourth year in a row. It has also received accreditation from College of American Pathologists (CAP) upon completion of the inspection process. This accreditation was received in the first inspection itself.

2012-13:

  • The Gujarat Ecology Commission selected the Company for good ‘Environment-friendly Practices in Gujarat’. Zydus Research Centre won the Safety Award for the third consecutive year from Gujarat Safety Council.

2013-14:

  • Moraiya formulations facility was awarded the 'Gold Award - Pharma Sector, Mega Large Business' by The Economic Times and Frost & Sullivan for achieving operational excellence.

2014-15:

  • The Moraiya formulations facility was awarded the 'Green Manufacturing Award - Gold Category' by International Research Institute for Manufacturing.
  • The Baddi formulations facility was awarded 'Gold Certificate Merit' in IMEA - India Manufacturing Excellence Awards 2014 by The Economic Times in partnership with Frost & Sullivan.

2015-16:

  • It was awarded the Overall India Pharma Excellence Award and the India Pharma Innovation of the Year Award from the Department of Pharmaceuticals, Government of India.

2016-17:

  • Topical formulations facility received the ‘Silver Certificate of Merit’ from Frost & Sullivan at India Manufacturing Excellence Awards 2016.

2017-18:

  • The manufacturing sites at Moraiya, Baddi and Sikkim received the Silver medal at the National Award for Manufacturing Competitiveness (NAMC) by IRIM global.
  • API manufacturing facility at Ankleshwar Ank Unit I bagged a Silver at the Greentech Safety Award 2017 in recognition of its safety systems from the Greentech Foundation, Environment.

2018-19:

  • Moraiya formulations manufacturing facility received the Gold Award in the category of Pharma Sector, Large Business at the India Manufacturing Excellence Awards, 2018.

2019-20:

  • Cadila Healthcare Limited received CSIR Diamond Jubilee Technology Award for Discovery & Development of Saroglitazar in June 2019.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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