Zydus Pharmaceuticals is a US-based incorporation, which is a subsidiary of Cadila Healthcare. The company is into discovering, developing, manufacturing, and marketing different generic medicines or healthcare therapies for its customers. It is one of the top-rated generic pharmaceuticals in the United States with an incredible global presence too.
With excellent customer service and high-quality yet affordable medicines, Zydus Cadila is reported to be one of the world’s fastest growing companies in the medicine business.
The market capitalization of Cadila Healthcare is above Rs.38,900 crore as of March 2018.
Company’s Wealth and Performance
- Cadila is an integrated, healthcare provider in the global market with strengths along the medicinal value chain. It provides best pharmaceutical ingredients and animal-based health products to the customers.
- In addition, Cadila is the sole Indian medicine firm to launch its patented NCE called “Lipaglyn,“ a drug that is approved for treating diabetic dyslipidemia.
- With a turnover of Rs.250 crore in the year 1995 and outstanding performances in the recent decdes, the company is now reported to make more than Rs.9,500 crore.
- In the financial year 2011 alone, it earned a revenue of Rs.4,600 crore, making it one of the best billion dollar companies in the world.
- As a prominent healthcare provider, Cadila targets to become one of the leading global research-based medicinal companies by the year 2020.
- The company focuses on four simple strategies to improve its growth – Value Creation, Innovation, Collaboration, and Accountability. These are the primary reasons Cadila has been shining in the recent decades.
- The pharmaceuticals company reported a jump in its consolidated net profit by 232.97% year-on-year to stand at Rs.460.50 crore.
- The revenue of the company inclined by 32.4% year-on-year which stood at Rs.2,893.7 crore.
- The EBITDA increased by 133.1% year-on-year to stand at Rs.645 crore during the said quarter as against Rs.276.7 crore reported during the corresponding quarter last fiscal.
- Its EBITDA margin rose by 963bps year-on-year to 22.3% over 12.7% during Q1 FY18.
- The company’s Profit After Tax (PAT) inclined by 233% year-on-year to stand at Rs.460.5 crore as compared to Rs.138.3 crore in Q1 FY18.
- The firm’s domestic formulations business rose by 40% year-on-year to stand at Rs.893 crore, while its US business inclined by 27% year-on-year to stand at Rs.1,230 crore.
- Its revenue from emerging markets such as Africa, Asia and Latin America rose by 13% year-on-year to stand at Rs.196 crore.
- The company’s operating income during the fiscal of 2017-18 grew by 27% year-on-year, while its operating profit, too, rose by 49.5% year-on-year during the said fiscal.
- However, its operating profit margin fell by 23.9% as against 20.3% during the previous financial year.
- Its depreciation charges and finance costs inclined by 44.3% and 104.3% year-on-year, respectively.
- Other income during the said fiscal was down by 11.8% year-on-year, while its net profit increased by 20.4% and its net profit margins decreased from 16% during the previous fiscal to 15.2% in the current fiscal.
- During the quarter ending March 2018, the company reported its consolidated net profit rose by 44.61% year-on-year to stand at Rs.595.5 crore.
- The company’s sales inclined by 31.8% year-on-year to stand at Rs.3,250.2 crore.
- The EBITDA rose by 87.4% year-on-year to stand at Rs.870.4 crore, while the EBITDA margin was at 26.8% during the said quarter as against 26% during the previous quarter, and 18.8% during the corresponding quarter of last fiscal. The Adjusted Profit After Tax inclined by 44.6% year-on-year to stand at Rs.595.5 crore.
- The gross margin during the Q4 FY18 was at 66.7% as compared to 65.6% reported during the previous quarter.
- Other income during the quarter was at Rs.28.7 crore over Rs.41 crore in during the quarter ending December 2017 and Rs.73.1 crore during the Q4 FY17.
- The stock price on the 1st of January stood at Rs.432.55 and gained over 20 points to stand at Rs.452 on the 8th before it lost more than 25 points by the end of the month to close at Rs.425.80.
- The scrip lost further 8 points on the 1st of February to end the day at Rs.417.65 and by the end of the month, the stock dropped to close at Rs.405.10.
- On the 1st of March, the scrip ended the day at Rs.404.05 and lost more than 30 points to stand at Rs.370.35 on the 23rd; however, it gained 7 points by the end of the month to close at Rs.377.85.
- When the market opened for trading on the 2nd of April, the scrip rose to touch Rs.385.05 and by the end of the month, the scrip has gained nearly 30 points to close the month at Rs.412.35.
- The stock price on the 2nd of May stood at Rs.406.35; however, on the 22nd of the month, the scrip touched an all-time low of Rs.343.05 before gaining nearly 20 points to end the month at Rs.361.30.
- The scrip lost about 9 points on the 1st of June to end the day’s trading at Rs.353 and gained more than 60 points by the 25th to stand at Rs.412.35 only to drop by the end of the month to stand at Rs.377.40.
- In July, the scrip remained stable during the first and second week when it began with Rs.385.95 and touched an all-time low of Rs.343.55 on the 19th; however, by the end of the month, the stock grew to end at Rs.381.45.
- On the 1st of August, the stock price of the company stood at Rs.377.50 and dropped to Rs.340 on the 14th, but rose by the end of the month to close at Rs.402.75.
- During Q1 FY 2018, Cadila Healthcare Limited made a total revenue of Rs.21,672 million from both domestic and international markets. The formulations in the Indian market performed well but when compared to the first-quarter of the last fiscal year, there was a declination in the growth by 4.2%.
- During Q2 FY 2018, the company made a total revenue of Rs.31,549 million with an incredible growth of 32.2% from the last fiscal year. The sales were very strong and there was a net gain of Rs.136 million from its foreign subsidiaries. There was a positive outcome from the EBITDA income as well.
- During Q3 FY 2018, the company earned a total revenue of Rs.31,918 million with a brilliant growth of 38.6% from the last financial year. However, there was a net loss of Rs.204 million from its foreign subsidiaries and another Rs.29 million loss from its additional operating expenses.
Cadila Healthcare Limited Stock Trends in 2016 and 2017
- During Q1 FY 2016, Cadila Healthcare made a grand revenue of Rs.24,217 million from both Indian and International markets. In this quarter, the company gained a net profit of Rs.132 million with the inventories of foreign subsidiaries.
- During Q2 FY 2016, the company earned a total revenue of Rs.24,180 million from both Indian and International markets. With a net gain of Rs.166 million, there was a 14.8% growth from the second-quarter of the last financial year.
- During Q3 FY 2016, Cadila Healthcare Limited made a total revenue of Rs.23,920 million with a net profit of Rs.93 million. On an aggregate level, the company gained Rs.200 million on all the operating transactions that were above EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) line.
- During Q4 FY 2016, the company earned a total revenue of Rs.24,280 million. However, this quarter saw a net loss of Rs.22 million from inventories of its foreign subsidiaries. But on an aggregate level, the business made a profit of Rs.24 million n all the operating transactions falling above the EBITDA line.
- During Q1 FY 2017, the formulation market saw a good demand and the company made a total revenue of Rs.22,264 million from both domestic and international markets. There was a net profit of Rs.237 million from the inventories of its foreign subsidiaries.
- During Q2 FY 2017, the company earned a total revenue of Rs.23,868 million and demonstrated a 3.3% growth from the second-quarter of the last financial year. However, there was a net loss of Rs.120 million from the inventories of its foreign subsidiaries and even on an aggregate level, there was a loss of Rs.264 million. Considering the EBITDA from the last fiscal year, there was a declination, owing it to the weak sales performances.
- During Q3 FY 2017, the company made a grand revenue of Rs.23,024 million from both national and international markets. It earned a net profit of Rs.97 million from inventories of its overseas subsidiaries. The quarter had a good amount of sales but comparing it to the third-quarter of the last fiscal year, it plummeted to 0.7%.
- During Q4 FY 2017, Cadila Healthcare made a total revenue of Rs.24,642 million with a 6.1% inclination from the last fiscal year. However, there was a net loss of Rs.264 million from the inventories of its foreign subsidiaries and even on an aggregate level, the company experienced a loss of Rs.345 million.
Should you Invest in Cadila Healthcare?
- For a long-term investment, Cadila Health Limited is one of the ideal stocks. Their revenues and funds have doubled in the last few years and the company has been growing drastically.
- The company covers a wide range of healthcare products and their sales performances in the last few years have increased amazingly.
- For a good-performing pharma stock, Cadila Healthcare is one of the decent choices. Considering their figures, their equities are doing better than others even in the bull market.
- Even when its peers were under their downfall, Cadila managed to hit its 52-week high. With new product launches and monopoly approvals from the USFDA (United States Food and Drug Association), it is worth putting your money on.
Cadila Healthcare is a pharmaceutical company in India whose headquarters are located at Ahmedabad, Gujarat. With a revenue of Rs.54.7 billion, the company has been not only reported as India’s fourth biggest pharmaceutical company but also plays a key role in manufacturing generic drugs.
The company is one of the oldest and key players for making formulations in the Indian market. In spite of improving continuously for enhanced market share and market presence, the organization has also extended its portfolio by coming up with new therapeutic products. In fact, it has a good presence in both chronic and acute therapies.
Their strategies have assisted them to become a dominant player in the Indian healthcare market. The entire group has developed great positions in some of the key segments like Gastrointestinal, Cardiovascular, and Women’s Healthcare. Besides these, the company also ranks in many therapeutic categories like Pain Management, Anti-infective, Dermatology, and Respiratory.
History of the Company
Ramanbhai Patel founded Cadila Healthcare in 1952 with Indravadan Modi, his business partner. Patel was formerly a well-known lecturer at L.M College of Pharmacy but as years passed, he evolved this small firm into an established and reputed pharmaceutical company.
In 1995, however, the Modi and Patel families split for some reasons. Therefore, Modi’s family shares were moved to a new company named Cadila Pharmaceuticals Limited whereas Patel’s share holdings were moved to Cadila Healthcare.
In 2000, Cadila Healthcare made its first public offering on BSE (Bombay Stock Exchange) with the code 532321. After years of consistent performances, Cadila Healthcare acquired Química e Farmacêutica Nikkho do Brasil Ltda as a part of the Zydus Healthcare Brasil Ltda and another Indian pharmaceutical company named German Remedies in 2015. In 2014, the company was the first to launch an adalimumab biosimilar with the name “Exemptia“ and that too at 1/5th of the originator’s cost.
From 9 pharmaceutical manufacturing operations within India, it produces a huge range of medicines, skincare products, herbal products, over-the-counter products, and diagnostics. In late 2015, it even made an agreement with Gilead and produces generics for treating Hepatitis-C.
The major shareholders of Zydus Cadila are none other than the Patel family. Pankaj Patel is his son and the CEO of the company. With a net worth of 510 million USD, he ranks 26th in the list of Forbes richest people in India. With this, the company has been reported to be the world’s third biggest producers and is said to grow even bigger in the coming years.
Pankaj R. Patel – The Chairman of Cadila Healthcare
Pankaj Ramanbhai Patel was born in 1951 and is now one of the top billionaire businessmen in India. He is the Managing Director and Chairman of Cadila Healthcare, the India’s fifth biggest pharmaceutical company.
He is a Gujarati and holds a Master’s degree in Pharmacy from the Gujarat University. In 2003, he was titled as the “Best Pharma Man“ by the Indian Industry & Economists foundation. He became the president of IIT Bhubaneswar, IIM Ahmedabad, and FICCI (Federation of Indian Chambers of Commerce and Industry) in 2017.
Sharvil P. Patel – The Managing Director of Cadila Healthcare
Sharvil Patel is the only son of Pankaj Patel and now serves as the managing director of Cadila Healthcare. He did his Chemical and Pharmaceutical Sciences from University of Sunderland in United Kingdom and a doctorate degree as well from the same university.
He is associated with the business for the past 2 decades and has been managing the operatios for more than 1 decade. During his tenure, he contributed a lot in making the company big by spearheading different strategic initiatives like “Healthy Billion“ that looked at propelling the whole group into a next league.
Cadila Healthcare Listings and Indices
Zydus Research Centre,
Sarkhej-Bavla N.H. No. 8A,
Moraiya, Ahmedabad – 382210
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