1230.1000 7.90 (0.65%)
NSE May 23, 2025 15:31 PM
Volume: 734.3K
 

1230.10
0.65%
HDFC Securities
We model 13/37% rev./earnings CAGR (FY18-21E) and re-iterate BUY with a TP of Rs 3,260 (20x Dec-20E EPS + Rs 380 for niche products). Ramp up in emerging markets (up 31% YoY), cost control measures, lower R&D; (9.5% of sales), tax benefits (17% tax rate) and one off gain from sale of API unit (Rs 423mn) led to a 30% beat on our PAT estimates; which was up 45% YoY to Rs 4.8bn. Adjusting for the one-off income, it grew 36% YoY. Despite weaker US sales (down 8% YoY), the operational performance was in-line with our expectation as EBITDA margin improved to 21.2%. Even at normalized R&D;, it would have been above 20%.
Dr. Reddy's Laboratories Ltd. is trading below its 200 day SMA of 1260.2
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