Cadila Healthcare Ltd

Cadila Healthcare Ltd Zydus Pharmaceuticals

Complex and competitive business. (Cipla, Syngene, Sun, Lupin, Torrent, Reddy, Aurobindo etc).
American strict drug law, Patents affect the business. Dependency on foreign market. Debt is more but I see this common trait for almost all Pharma companies.

I like the management they have full potential to grow the company. Smart qualified people.

Market Cap.: ₹ 36,322.39 Cr.
Current Price: ₹ 354.80
Book Value: ₹ 59.05
Stock P/E: 24.67
Dividend Yield: 0.90%
Face Value: ₹ 1.00

P/E is little high (according to me) but stock is fairly priced with respect to growth and other factors.
Company is capitalizing the interest cost of debt which is one minus

Net profit: 1,522.60
growth 20%

Cadila Zydus has some good known products like Everyouth, Nutralite, Sugar free (Natura).

Cadila seems like a blue chip stable company with stable growth, don’t expect very steep growth may be consistent growth or not sure about that
management is great for sure

Final Verdict:
I think I should buy the stock but need to understand their business and competitors business and market risks. There are really good competitors the market.
Torrent pharma is cheaper but Cadila has better brand management of both companies are great but I liked Cadila management more. Torrent is new. Shareholder letter for Cadila is so much better than torrent pharma.

I am very new to value investing and this is me taking random notes just for myself. Please don’t base any of your decision on these write-ups. That will be foolish.


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