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Cadila Healthcare shares hit 52-week high as Q2 profit jumps 4-fold

Cadila Healthcare share price jumped over 7 percent intraday on November 3 after the company’s Q2 net profit jumped over four-fold to Rs 473.4 crore.

The drug firm on November 3 reported an over four-fold jump in its consolidated net profit to Rs 473.4 crore for the quarter ended September. The company had posted a net profit of Rs 107.2 crore for the corresponding period of the previous financial year, Cadila Healthcare said in a BSE filing.

Consolidated total revenue from operations of the company stood at Rs 3,820 crore for the quarter under consideration.

The company has significantly reduced its net debt by Rs 2,709 crore in the first six months of FY21, which is 40 percent reduction from net debt reported in March 2020.

The net debt as on September 30, 2020 stood at Rs 4,031 crore against Rs 6,740 crore as on March 31, 2020, the filing said.

The stock was trading at Rs 439.60, up Rs 29.45, or 7.18 percent. It has touched a 52-week high of Rs 451.15. It has touched an intraday high of Rs 451.15 and an intraday low of Rs 418.55.

Global research firm, CLSA has maintained buy call on the stock and has raised target to Rs 540 from Rs 525 per share. It is of the view that R&D initiatives is expected to drive long-term growth adding that strong US business and improving profitability in India should drive margin, according to a CNBC-TV18 report.

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The research firm has increased FY21-23 EPS estimates by 3-8 percent.

According to Moneycontrol SWOT Analysis powered by Trendlyne, the stock is showing strong momentum – price above short, medium and long term moving averages. The company has zero promoter pledge with the company showing strong cash generating ability from core business – improving cash flow from operation for last 2 years.

Moneycontrol technical rating is neutral with moving averages and technical indicators being neutral.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.​​

 

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