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Cadila Healthcare is one of the leading pharma companies with a sizable exposure to the US generics market and strong present in the acute therapies in the domestic market. The company is also on the verge of obtaining an approval and launching a vaccine for the Corona virus. The company is ramping its bio-similar& complex injectables business which has better value add and therefore higher margin. Recent price decline in US generics is concerning and not clear whether it is transient or sticky. It is for this reason we have a neutral weight rating as also fair valuations. Recent sale of animal products will deleverage the balance sheet and acceptance of Covid vaccine needs to be monitored for upside opportunities – 18-08-2021 Price: 18-08-2021 Rating: Neutral Weight Recommendation: Hold

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