Cadila Healthcare Ltd

About

In 1995, the group was restructured and thus was formed Cadila Healthcare under the aegis of the Zydus group. From a humble turnover Rs. 250 crores in 1995 the group witnessed a significant financial growth and registered a turnover of over Rs. 14,253 crores in FY20.
Adhering to its brand promise of being dedicated to life in all its dimensions, Zydus continues to innovate with an unswerving focus to address the unmet healthcare needs. Simultaneously it rededicates itself to its mission of creating healthier, happier communities across the globe

Key Points

US Generic business (45% of revenues)
Ranked 4th among US generic companies [1], having grown sales from ~$211 mn in FY11 to $828mn in FY20

Has secured highest number of ANDA approvals (#230) in last 4 years, [2] with total 337 ANDA approvals, 117 DMF filings and 190+ launched products [2]

Has a rich pipeline of complex generics including injectables, orphan and specialty drugs addressing market size of ~$119bn [3]

Plans to file ~40 ANDA and 1 NDA per year over the next 3 years. [4]

Spends 7-8% of revenues in R&D [5]

See full details
  • Market Cap 55,702 Cr.
  • Current Price 544
  • High / Low 674 / 404
  • Stock P/E 24.0
  • Book Value 127
  • Dividend Yield 0.64 %
  • ROCE 14.8 %
  • ROE 19.6 %
  • Face Value 1.00

Pros

  • Company has reduced debt.
  • Company has been maintaining a healthy dividend payout of 22.21%

Cons

  • Stock is trading at 4.29 times its book value
  • The company has delivered a poor sales growth of 9.88% over past five years.
  • Tax rate seems low
  • Company might be capitalizing the interest cost
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Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
2,961 3,578 3,733 3,496 3,367 3,638 3,752 3,515 3,820 3,796 3,692 4,025
2,273 2,738 2,922 2,864 2,731 2,940 2,961 2,724 2,957 2,989 2,887 3,092
Operating Profit 688 840 811 632 636 698 791 790 863 807 805 933
OPM % 23% 23% 22% 18% 19% 19% 21% 22% 23% 21% 22% 23%
Other Income 30 31 28 23 -251 14 -8 38 -104 28 -77 54
Interest 36 46 77 89 90 80 82 68 46 27 23 27
Depreciation 148 154 156 172 172 174 178 173 179 180 184 183
Profit before tax 535 672 606 394 122 457 522 588 534 627 521 777
Tax % 23% 24% 21% 20% 32% 20% 21% 20% 21% 18% -40% 18%
Net Profit 418 511 460 304 107 374 392 454 473 527 679 587
EPS in Rs 4.08 4.99 4.49 2.97 1.05 3.65 3.83 4.43 4.62 5.15 6.63 5.74

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 TTM
3,574 4,631 5,263 6,358 7,224 8,651 9,427 9,376 11,905 13,166 14,253 15,102 15,333
2,863 3,602 4,177 5,228 6,021 6,896 7,095 7,474 9,074 10,174 11,455 11,758 11,925
Operating Profit 711 1,028 1,086 1,130 1,203 1,756 2,332 1,902 2,831 2,991 2,798 3,344 3,409
OPM % 20% 22% 21% 18% 17% 20% 25% 20% 24% 23% 20% 22% 22%
Other Income 109 11 49 32 30 45 112 127 111 183 -264 -171 -100
Interest 82 70 183 169 90 68 53 45 91 194 342 164 123
Depreciation 134 127 158 185 201 287 292 373 539 599 696 725 727
Profit before tax 604 842 794 809 942 1,446 2,099 1,612 2,312 2,382 1,495 2,285 2,459
Tax % 12% 13% 14% 15% 11% 18% 8% 8% 24% 22% 21% 6%
Net Profit 505 711 653 654 804 1,151 1,934 1,488 1,776 1,849 1,177 2,134 2,267
EPS in Rs 4.93 6.95 6.37 6.38 7.85 11.24 18.89 14.53 17.35 18.06 11.49 20.84 22.14
Dividend Payout % 14% 18% 24% 24% 23% 21% 17% 22% 20% 19% 30% 17%
Compounded Sales Growth
10 Years:13%
5 Years:10%
3 Years:8%
TTM:7%
Compounded Profit Growth
10 Years:12%
5 Years:3%
3 Years:10%
TTM:70%
Stock Price CAGR
10 Years:14%
5 Years:7%
3 Years:13%
1 Year:26%
Return on Equity
10 Years:22%
5 Years:19%
3 Years:18%
Last Year:20%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
68 102 102 102 102 102 102 102 102 102 102 102
Reserves 1,560 2,069 2,484 2,842 3,337 4,149 5,597 6,858 8,642 10,284 10,273 12,890
Borrowings 1,090 1,092 2,289 2,918 2,700 2,651 2,442 5,207 5,407 7,899 7,986 4,584
1,024 1,348 1,548 1,512 1,847 2,144 2,208 2,937 3,632 4,945 5,115 6,189
Total Liabilities 3,743 4,611 6,423 7,374 7,986 9,047 10,350 15,104 17,783 23,231 23,477 23,765
1,684 1,833 2,857 3,026 3,124 3,352 3,748 5,755 6,483 12,164 12,230 12,133
CWIP 248 431 484 736 892 798 951 1,543 1,527 837 742 783
Investments 21 21 24 114 87 154 416 435 746 674 765 830
1,790 2,326 3,058 3,498 3,885 4,743 5,235 7,371 9,028 9,556 9,740 10,019
Total Assets 3,743 4,611 6,423 7,374 7,986 9,047 10,350 15,104 17,783 23,231 23,477 23,765

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
695 683 511 603 903 994 1,894 1,312 919 1,282 2,932 3,293
-372 -466 -1,200 -682 -438 -465 -860 -2,872 -974 -3,977 -1,004 -835
-325 -172 860 286 -529 -351 -935 2,316 52 1,885 -1,528 -2,549
Net Cash Flow -1 44 171 207 -64 178 99 756 -3 -811 399 -90

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Debtor Days 48 60 64 55 57 67 68 89 98 110 94 76
Inventory Days 232 201 234 191 184 175 158 193 211 208 207 227
Days Payable 192 141 117 103 123 125 154 165 167 149 152 155
Cash Conversion Cycle 88 120 181 142 119 118 71 116 142 169 149 148
Working Capital Days 68 59 78 77 68 70 59 73 105 120 103 90
ROCE % 27% 31% 24% 18% 18% 23% 29% 16% 18% 15% 12% 15%

Shareholding Pattern

Numbers in percentages

Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021
74.79 74.79 74.79 74.88 74.88 74.88 74.88 74.88 74.88 74.88 74.88 74.88
8.19 8.12 4.69 4.49 4.58 4.41 4.56 4.38 5.24 5.23 4.65 4.11
9.02 9.06 11.60 12.51 12.62 12.90 12.59 12.50 11.72 11.30 10.50 11.25
0.12 0.13 0.13 0.13 0.13 0.14 0.19 0.19 0.19 0.19 0.07 0.07
7.88 7.90 8.79 8.00 7.80 7.67 7.78 8.05 7.97 8.40 9.90 9.69

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