Pinc research has undertaken an analysis of the stock price of Cadila Healthcare and it is optimistic on the stock and has suggested a future price of Rs 751 for the stock. It has aksed its clients to accumulate the stock.
Cadila Healthcare’s (Cadila) stock price correction of 17 per cent in the last 6 months is unwarranted. Going ahead, analysts expect pick-up in the domestic business including Zydus Wellness (ZWL) which should help the company boost its margins. The Moraiya facility is expected to be cleared in H2FY13, leading to a flow of product approvals for the company. Overall, analysts estimate Cadila's revenues and net profit to clock a compounded growth of 16.3 per cent and 29.3 per cent respectively over FY12-14. Analysts expect operating margins to improve by 234bps over FY12-14 on the back of pick-up in sales, which in turn would negate the impact of increase in the interest cost.
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