CLSA raises target price of Cadila Healthcare; should you buy?

NEW DELHI: Global brokerage house CLSA maintained ‘outperform’ rating on Cadila Healthcare after the company announced that the US health regulator has inspected the company's Moraiya plant and found it meeting the manufacturing norms.

CLSA raised the target price of Cadila to Rs 480 from Rs 390 earlier. Shares of the pharma company were trading 2.95 per cent up at Rs 442.10. The scrip opened at Rs 446 and touched a high and low of Rs 450 and Rs 438.60, respectively, in trade so far. Benchmark BSE Sensex was trading 153.31 points, or 0.54 per cent, up at 28,454.58 around 9.45 am (IST).

United States Food and Drug Administration (USFDA) inspected company's Moraiya facility from February 6, 2017 to February 15, 2017. At the end of the inspection no observation (483) is issued," Cadila Healthcare said in a filing to BSE.

The global brokerage house said, “Moraiya outcome a big surprise but approvals may take time.” CLSA believes benefits of Moraiya's clearance will be more visible in FY19 vs FY18.