Cadila Healthcare recovers on India, emerging market sales forecast

Restructuring and consumer acquisition to be key drivers of revenue

The Cadila Healthcare stock has rebounded 12 per cent after falling to its five-year low last month.

The uptick, which came on the back of brokerage upgrades, was largely on expectations of earnings recovery. Analysts believe that investments in India and emerging markets (EMs), as well as new products, should help revenue growth with most concerns already priced in.

Analysts at CLSA expect results from the company’s efforts to start bearing fruit from FY21. They also find valuations (price-to-earnings ratio) attractive. HDFC Securities, too, believes the stock is one of the cheapest large-cap pharma names, following the sharp fall in prices.

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