Reliance Securities has maintained 'Buy' on Cadila Healthcare after the company declared its second quarter results. The stock broker fixed price target at Rs 530.

Commenting on the results, Reliance Securities said, ''Cadila's second quarter results were optically appealing as sale of dossiers continue to boost other income along with forex gains. The company has posted 40.56% jump in consolidated net profit to Rs 3,909.1 million for the second quarter ended on Sept. 30, 2015-16 from Rs 2,780.9 million for the same quarter last year. The total income of the company has increased from Rs 21,226.1 million to Rs 24,831.9 million in the second quarter of the current fiscal.''

Commenting on the investment rationale, the stock broker said, ''The next leg of growth to be driven by transdermal and topicals remains hostage to regulatory issues hindering the approval of gToprol, gPrevacid ODT and Asacol HD. While the status quo on Moriaya facility continues to be an overhang, we are comforted by the back up plan of new injectable facility for the existing ANDAs and/or site transfers of future pipeline. Reiteration of margin guidance of 21% for FY16E, implies lower contribution from HCQS in 2H. We maintain Buy with a target price of Rs 530.'' 

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