Cadila Healthcare has surged 10 percent in three days on the back of decent December quarter results, bullish brokerage views and positive results post US Food and Drug Administration inspection.

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On Thursday, the stock added 6.3 percent after the firm reported a 249 percent rise in its Q3 net profit on a sequential basis amid bullish brokerage views. Its Q3 net profit stood at Rs 373.9 crore compared to Rs 82.90 crore profit in the previous quarter.

However, on an year-on-year basis, consolidated net profit fell 26.78 percent in Q3 on account of rise in expenses. The company had posted a net profit of Rs 510.7 crore for the corresponding period of the previous fiscal.

In Q3, Cadila's revenue from operations stood at Rs 3,638.1 crore as compared with Rs 3,577.9 crore in the year-ago period. The company received eight new product approvals (including two tentative approvals) from the USFDA during the quarter.

CLSA raised the target price of the stock to Rs 330 per share from Rs 310 earlier, while maintaining a 'buy' call. According to the brokerage, the company's India and US businesses are on a strong footing and the PE valuations are also attractive. It also raised Cadila's FY20-22 estimates by 2-10 percent.

Meanwhile, Nomura also maintained a 'buy' call on the stock with the target price at Rs 278 per share. The key focus and large brands are recording growth more than the company’s average, said the brokerage adding that it expects to complete the remediation process at Moraiya by Q1FY21.

Citi also raised its target price to Rs 240 from Rs 220 per share. The rate sell on high product concentration is a risk in US generics business, while the recent acquisition of Heinz India could be an overhang on the stock, said Citi.

On Tuesday, the company in a BSE filing informed that the USFDA inspected the manufacturing facility of Alidac Pharmaceuticals, the company's wholly-owned subsidiary, located at SEZ, Ahmedabad from January 27, 2020 to February 4, 2020. At the end of the inspection, no observation (483) was issued.

The site manufactures oncology injectables for the regulated markets.

Cadila Healthcare is headquartered in Ahmedabad, India. The group has manufacturing sites and research facilities spread across five states — Gujarat, Maharashtra, Goa, Himachal Pradesh and Sikkim in India, and in the United States and Brazil.

First Published:Feb 6, 2020 12:57 PM IST