Cadila Healthcare surges after brokerage upgrade

Cadila Healthcare jumped 4.91% to Rs 845.75 on BSE after a foreign brokerage upgraded the stock to buy from underperform.

Meanwhile, the BSE Sensex rose 36.14 points, or 0.17%, to 20,729.38.

On BSE, so far 1.45 lakh shares were traded in the counter, compared with an average volume of 25,601 shares in the past one quarter.

The stock hit a high of Rs 869.90 and a low of Rs 808 so far during the day. The stock hit a 52-week high of Rs 924.60 on 22 February 2013. The stock hit a 52-week low of Rs 631 on 20 August 2013.

The stock had outperformed the market over the past one month till 7 January 2014, rising 9.58% compared with the Sensex's 1.44% fall. The scrip had also outperformed the market in past one quarter, gaining 18.93% as against Sensex's 4.01% rise.

The large-cap company has an equity capital of Rs 102.37 crore. Face value per share is Rs 5.

The foreign brokerage raised its target on Cadila Healthcare stock to Rs 1,000 from Rs 705, saying the worst is behind and earnings will accelerate from fiscal 2015. The foreign brokerage said it expects Cadila to get 20 or more drug approvals from the US Food and Drug Administration (US FDA) and that it expects Cadila's domestic sales to recover in fiscal 2015.

Cadila Healthcare's consolidated net profit surged 93.76% to Rs 183.37 crore on 13.19% increase in total income to Rs 1759.02 crore in Q2 September 2013 over Q2 September 2012.

Cadila Healthcare is a global pharmaceutical company that discovers, develops, manufactures and markets a broad range of healthcare therapies.

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