Dr. Reddy's Laboratories Ltd. share price target

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...

Dr Reddy's (DRRD) reported a Q3 operational miss after a strong H1.

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...

We recommend a BUY with a target price of Rs 6,200.

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...

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 recommend a BUY on Dr. Ready's Laboratories Ltd with a Target Price of Rs 5,280, an upside of 8% from CMP of Rs 4,890 and Stop Loss Rs 4,600.

EBITDA rose 10.1% QoQ (-13.1% YoY), despite margin contracting 20bps QoQ (-440bps YoY) to 25.1%, impacted by forex losses, higher staff costs. Subsequently, net profit rose 29.8% QoQ (-30.3% YoY) to Rs....

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...