Dr. Reddy's Laboratories Ltd. share price forecast
The 47 reports from 12 analysts offering long term price targets
for Dr. Reddy's Laboratories Ltd. have an average target of 5170.27. The consensus estimate
represents an upside of 17.38%
from the last price of 4404.70.
IPM is struggling for growth above 10% even after MoM abating COVID concerns and with MRs, physician activities almost reaching pre-COVID level. We believe key reasons for growth below par are (i) subdued new prescription (Rx) leading to volume de-growth (ii) digital marketing yield going south and (iii) sustained lower demand of acute products. Cardiac and anti-diabetic growth takes a breather in Jan-21 at 8.8% and 5.3% after reporting double digit growth in most months during lockdown. While amongst top therapies Gastro and VMN reported double digit growth of 14%...
The drug maker's consolidated revenue increased 12% year on year to Rs 4930 crore in Q3 FY21. Dr. Reddy's registered a profit before tax of Rs 284.3 crore in Q3 FY21 compared with pretax loss of Rs 527.40 crore posted in the same period last year. Tax expense surged to Rs 264.5 crore in Q3 FY21 as against Rs 42.30 crore in Q3 FY20. The company reported impairment charge of about Rs 600 crore during the quarter. In January 2021 there has been an additional generic launch for the product Nuvaring, which has led to...
We remain positive on the stock with new product launches across geographies, higher R&D; investment in key segments and synergy benefits. Hence, we reiterate our BUY rating on the stock with a rolled forward target price of Rs. 5,712 based on 24x FY23E adj. EPS. Growth across the key segments led by new launches Consolidated revenue went up 12.4% YoY to Rs. 4,942cr (+0.6% QoQ), led by growth in Generics business (+13.4% YoY, +2.2% QoQ) partially offset by muted growth in PSAI segment (+2.2% YoY, -14.6% YoY QoQ). North America improved to Rs. 1,793cr...
Revenue Inline- Price erosion, impairment and high SG&A; cost hit earnings DRL 3QFY21 reported net earnings (Rs. 198mn) saw a steep decline despite inline revenues (Rs. 49296 mn) as company booked impairment charge on Nuvaring and other intangible assets. Adjusted for the same net earnings stood at Rs. 6170mn (Rs 37.2 per share) which was lower than our/consensus expectations by 7%/13% respectively. Earnings were lower than expectations due to steeper than expected decline (18% QoQ) in PSAI, and a 5% sequential decline in North America sales, higher SG&A; spend and higher Effective tax rate (30%) which was partially offset by strong growth in domestic brand sales and an extraordinary milestone...
Q3 revenues grew 12.4% YoY to | 4942 crore (I-direct estimate: | 5014 crore). Domestic revenues grew 25.6% YoY to | 959 crore due to Wockhardt integration and new product launches. Europe revenues grew 33.9% YoY to | 414 crore due to new launches. US revenues grew 8.7% YoY to | 1739 crore on the back of new product launches, favourable forex rate partly offset by price erosion. Adjusting for impairment charge of | 597.2 crore in Q3FY21, | 1320 crore in Q3FY20, EBITDA margins were down 46 bps YoY at 23.0% (I-direct estimate: 23.4%) due to lower gross margins amid price...
IPM growth recovered in Dec-20 to 8.5% after weak Nov-20, due to festive season and fears related to lockdown. The key reasons for growth in Dec-20 (as from Nov-20 onwards) are (i) MRs back on field with full force and (ii) marketing activities reaching pre-COVID levels. Digital marketing continues to be an integral part of marketing activities, which actually started as a cost...
Cipla: Owing to competition, we expect Cipla to garner 1-7% market share for volume-limited period and 15% thereafter. Hence, with above market share and a 70-90% price erosion assumption, our gRevlimid NPV arrives at | 41. We maintain BUY rating and arrive at a target price of | 965, including...
We revise our estimates on gVascepa sales for Dr. Reddy's Laboratories (DRL). Last quarterly sales annualised for Vascepa are US$620mn. We account for upside from Sputnik vaccine in our DRL target price considering the publication of positive data from interim analysis of Phase 3 studies suggesting >95% efficacy at 21 days post administration of the second dose. Revision in our gVascepa Forecasts: We revise our sales forecast on gVascepa for DRL as we gather from recent launch by Hikma that generics have been granted a skinny label, which carves out the larger indication (reduction in CV risk in statin treated patients with TG level >150mg/dl). In addition we also anticipate supply and pricing constraints to restrict the market share. Dr. Reddy is yet to launch...
Dr Reddys Labs reported on weak Q2 outcome, misses estimates Consolidated total income jumped 2% to Rs 4910.90 crore in Q2 September 2020 as against Rs 4812.80 crore in Q2 September 2019. Profit before tax (PBT) jumped 12.48% to Rs 862.10 crore in Q2 September 2020 as against Rs 766.40 crore in Q2 September 2019. Tax expense for...
We expect Consol Revenue amd Consol PAT CAGR 10.9% and 22.1% respectively over the period FY20-FY23E. Therfore, we recommend BUY Target Price INR 6,200 for DRRD (PE multiple of 28x to FY23E earnings).
Dr. Reddy's Laboratories or DRL's 2QFY21 revenue at Rs48,967mn is up 11% QoQ and was up 2% YoY. YoY numbers are not comparable as 2QFY20 had a onetime benefit from sale of proprietary brands. QoQ Growth was led by India and North America which grew 45% and 6% respectively. EBITDA for the quarter at Rs12,673mn was higher by 9% QoQ. Net profit stood at Rs7,623mn, which was up 31.6% QoQ, helped by...
Q2 revenues grew 2.0% YoY to | 4911 crore (I-direct estimate: | 4564 crore) mainly due to strong growth across segments partly offset by high base effect in Q2FY20 (divestiture of certain proprietary products). US revenues grew 28.5% YoY to | 1833 crore on the back of rupee depreciation and new product launches. Domestic revenues grew 21.5% YoY to | 912 crore due to Wockhardt integration and Covid products. Europe revenues grew 35.8% YoY to | 375 crore due to new launches and currency tailwinds. PSAI segment posted a robust 19.7% YoY growth to | 851 crore. EBITDA margins...
Dr Reddy's reported a decent 2Q with strong performance in India (Wockhardt portfolio integration and COVID products) and US (new launches). However, lower export incentive, higher price erosion, change in product mix and adverse currency impacted gross margins (54% in 2Q vs 56% in 1Q), in line with estimates. Adjusting for the impairment charge of Rs781mn for intangibles, EBITDA margins came in line at 24.3%. Further, lower tax rate (deferred tax benefit) aided profitability at Rs7.6bn (vs our estimate of Rs5.7bn)....
