Dr. Reddy's Laboratories Ltd. share price target and research reports

Latest analyst research reports with target prices and PDF download for DRREDDY, BSE:500124 Dr. Reddy's Laboratories Ltd.

Dr. Reddy's Laboratories Ltd.

29 Jul 2016, 12:00AM

1260.10

0.02%

Dr Reddys Laboratories Ltd

Neutral: Dr. Reddy's Laboratories Ltd.

Angel Broking

For 1QFY2017, Dr Reddy's Laboratories (DRL) posted a poor set of numbers. It posted sales of Rs3,235cr V/s Rs3,900cr expected and V/s Rs3,758cr in 1QFY2016, a yoy de-growth of 14.0%. The company's sales will continue to be under pressure owing to the likelihood of all its major markets posting a muted growth. Lower sales led to a soft EBI..

Dr. Reddy's Laborato.. has an average target of 1278.56 from 9 brokers.

Dr. Reddy's Laboratories Ltd.

28 Jul 2016

1260.10

0.02%

Dr Reddy's Laboratories

Hold: Dr. Reddy's Laboratories Ltd.

Recommendation Target

ICICI Securities Limited

ICICI Securities Ltd | Retail Equity Research Revenues declined 13.9% YoY to | 3235 crore (I-direct estimate: | 3912 crore) mainly due to 16.2% decline in US sales. The US sales decline was primarily on account of increased competition in gValcyte and gVidaza. RoW sales declined 52.7% YoY to | 128 crore primarily on account of zero sales in Venezuela EBITDA margins declined to 12.0% (I-direct estimate: 23.3%) against 26.6% in Q1FY16 on account of higher operational expenditure...

Dr. Reddy's Laborato.. has an average target of 1278.56 from 9 brokers.

Dr. Reddy's Laboratories Ltd.

28 Jul 2016

1260.10

0.02%

Dr. Reddy's Labs: Q1FY17 Result Review: Revenues contract ac... (Jul 28, 2016)

Sell: Dr. Reddy's Laboratories Ltd.

Recommendation Target

Karvy

DRL's revenues decreased by 14.0% YoY to Rs 32.3 bn (lower than our estimates of Rs 37.9 bn) due to tepid performance across Generics and PSAI. Gross margins decreased by 486bps YoY to 56.2% in Q1FY17 (lower than our estimates of 56.6%) due to greater price erosion in key products. Its operating profit has tanked to Rs 3869 mn during the quarter due decline in revenues, higher SGA including remediation costs and R & D expenses. Net profit de-grew by 79.8% YoY to Rs 1.26 bn (lower than our estimates of Rs 4.8 bn).

Dr. Reddy's Laboratories Ltd. is trading above its 200 day SMA of 1237.7

Dr. Reddy's Laboratories Ltd.

28 Jul 2016

1260.10

0.02%

EARNINGS UPDATE - DR REDDY LAB

Neutral: Dr. Reddy's Laboratories Ltd.

Recommendation Target

Chola Wealth Direct

Background: Dr. Reddy's is a global generic pharmaceutical company with focus on the US, Europe, Russia and India. Finished dosage and API account for a bulk of the revenues, with up to 60% of sales derived from overseas operations. With a strong research pipeline, its R&D; is focused in the areas of cancer, diabetes, cardiovascular, inflammation and bacterial infections. Dr. Reddy's offers a portfolio of products and services including APIs, custom pharmaceutical services, generics, biosimilars, differentiated formulations and NCEs. It has one of the largest ANDA & a patent challenge pipeline has strengthened presence through the launch of several...

Number of FII/FPI investors increased from 911 to 917 in Jun 2025 qtr.

Dr. Reddy's Laboratories Ltd.

27 Jul 2016

1260.10

0.02%

Dr Reddys (1QFY17): Weathering tough times. NEUTRAL

Neutral: Dr. Reddy's Laboratories Ltd.

Target

HDFC Securities

Dr Reddy’s (DRRD) PAT at Rs 1.2bn plummeted 80% YoY following a disappointing quarter for the US business. Top-line reduced to Rs 32.3bn (down 13% YoY) on account of major price corrections in key products in the US, coupled with weak PSAI sales. EBITDA margins contracted ~1450bps YoY, led by negative operating leverage and a few one-offs. Although DRRD will report better numbers in India and EM geographies going ahead, the US business has taken a major hit in the base business, leading to weak FY17 earnings estimates (at Rs 95). Profitability is expected to recover moderately in 2HFY17 on the back of a few scheduled launches, but regulatory resolution at the oncology plant remains a key factor. HDFC Securities resume coverage with a NEUTRAL rating on the stock owing to (1) A weak FY17E outlook and (2) FY18E growth being dependent on regulatory resolution. Their TP is Rs 2,900 (20x FY18E EPS of Rs 145, assuming resolution in FY18).

Trendlyne has 24 reports on DRREDDY updated in the last year from 7 brokers with an average target of Rs 3339.2 . Brokers have a rating for DRREDDY with 1 downgrade,6 price downgrades,1 upgrade,2 price upgrades in past 6 months and 3 downgrades,8 price downgrades,2 upgrades,8 price upgrades in past 1 Year.

Number of FII/FPI investors increased from 911 to 917 in Jun 2025 qtr.

Dr. Reddy's Laboratories Ltd.

27 Jul 2016

1260.10

0.02%

Dr Reddy Q1FY17 Update 27July2016

Sell: Dr. Reddy's Laboratories Ltd.

Recommendation Target

Phillip Capital

Below?expected sales across US, Europe, emerging markets and PSAI segment caused a 16% miss in our revenue estimates. 8 Incremental expenses such as remediation spend, NDA launching expenses in the US, higher R&D (15% of sales), and lower sales from the US (better margin) led to a negative surprise in profit   8 DRRD guides for expiry of a supply contract (with ~50% profit margin) in the US starting Q1 – this would have an annual negative PAT impact of ~US$ 25mn 8 Considering visible delay in plant clearance by the USFDA, no major product launches in the near future, and weak profit outlook, we downgrade our rating from Buy to SELL with a lower TP of Rs 2,750 – 20x FY18 (earlier Rs 3,700).we downgrade our rating from Buy to SELL with lower TP of Rs 2,750 – 20x FY18 (earlier Rs 3,700).

Trendlyne has 24 reports on DRREDDY updated in the last year from 7 brokers with an average target of Rs 3339.2 . Brokers have a rating for DRREDDY with 1 downgrade,6 price downgrades,1 upgrade,2 price upgrades in past 6 months and 3 downgrades,8 price downgrades,2 upgrades,8 price upgrades in past 1 Year.

Dr. Reddy's Laboratories Ltd. is trading above its 200 day SMA of 1237.7

Dr. Reddy's Laboratories Ltd.

26 Jul 2016

1260.10

0.02%

Dr Reddy's Labs: Pricing pressure in US and high remediation cost tak

Neutral: Dr. Reddy's Laboratories Ltd.

Target

Motilal Oswal

Operating performance significantly below estimates: Dr. Reddy’s Laboratories (DRRD) reported weak 1QFY17 sales of INR32.3b (down ~14% YoY, 17% below estimates) with EBITDA margin of 11.7% (v/s 26.2% in 1QFY16 and MOSL estimate of 21.5%). This significant miss can largely be attributed to: 1) decline in the US, EM and PSAI sales, 2) higher remediation cost and 3) cost related to the launch of 505 (b)(2) products.Motilal Oswal maintain Neutral with a TP of INR3,000 @ 18x FY18E PER (v/s INR3,200 @18x FY18E PER)

Trendlyne has 24 reports on DRREDDY updated in the last year from 7 brokers with an average target of Rs 3339.2. Brokers have a rating for DRREDDY with 1 downgrade,6 price downgrades,1 upgrade,2 price upgrades in past 6 months and 3 downgrades,8 price downgrades,2 upgrades,8 price upgrades in past 1 Year.

Dr. Reddy's Laboratories Ltd. is trading above its 200 day SMA of 1237.7

Dr. Reddy's Laboratories Ltd.

26 Jul 2016

1260.10

0.02%

Dr. Reddys - 1QFY17 Result Update

Hold: Dr. Reddy's Laboratories Ltd.

Target

Reliance Securities

USFDA resolution is a key for US business Dr. Reddy's Laboratories (DRL) has reported disappointing performance in Q1FY17 numbers, with its sales, operating income and PAT declining by 14%, /61% & 77% to Rs32.2bn, Rs 3.9bn & Rs 1.7bn, respectively. US sales dipped by 16% yoy to US$230mn due to pricing pressure on account of increased competition in its key molecules i.e. gValcyte & gVidaza and consequent loss of market share. DRL's RoW (Rest of the World) business dipped 53% yoy due to decline in sales in Venezuela. India business reported subdued 10% yoy growth led by new pricing policy and WPI-based annual price decline....

Dr. Reddy's Laboratories Ltd. is trading below its 50 day SMA of 1268.2

Dr. Reddy's Laboratories Ltd.

19 Jul 2016

1260.10

0.02%

Dr Reddy Co Update 19July2016

Buy: Dr. Reddy's Laboratories Ltd.

Target

Phillip Capital

DRRD launched gZegerid under a limited competition; in FY17/18 we estimate it to add incremental revenue and PAT of US$ 33/35mn and US$ 15/16mn, implying incremental earnings of 4.1%/3.5%. Ahead, limited competition opportunities (gGleevec – US$ 2bn, Aloxi NDA – US$ 416mn, and Proposfol – US$ 350mn) in H2 could positively surprise our FY17 US sales estimates of US$ 1.14bn (vs. US$ 1.16bn in FY16). While we considered the gZegerid approval as part of DRRD guidance (i.e. more ANDA approval in FY17 than FY16) and our estimates, factoring the effect of recent buyback of 5.08mn equity shares, we raise our FY17/18 EPS estimates by 3% to Rs 156/185. Keeping the target valuation multiple intact, we value DRRD at Rs 3700, i.e 20x FY18 EPS (vs. Rs 3600 earlier). Additionally, we expect a rerating led by its plant clearance in the near future.Keeping the target valuation multiple intact, Phillip Capital value DRRD at Rs 3,700 (20x FY18 EPS) vs. Rs 3,600 earlier.

Trendlyne has 21 reports on DRREDDY updated in the last year from 7 brokers with an average target of Rs 3647.5. Brokers have a rating for DRREDDY with 3 price downgrades,2 price upgrades,1 upgrade in past 6 months and 2 downgrades,5 price downgrades,2 upgrades and 8 price upgrades in past 1 Year.

Dr. Reddy's Laboratories Ltd. is trading below its 50 day SMA of 1268.2

Is Dr. Reddy's Laboratories Ltd. worth buying?

521 Votes:

Buy 77.93%

Sell 12.48%

Hold 9.6%

RESEARCH REPORTS

Sell SEE REPORTS >

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Hold SEE REPORTS >

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