Dr. Reddy's Laboratories Ltd. share price target

DRL's revenues rose 11.2% YoY to Rs38.7 bn (in line with our estimates of Rs38.1 bn) due to better performance of Europe, US, India in global Generics and Europe in PSAI segment. Gross margins decreased by 240bps YoY to 54.8% in Q4FY15 (lower than our estimates of 58%) on account unfavorable currency impact.

Dr Reddy's Laboratories' (DRL's) Q4FY15 operating performance was just in line of expectationswithAdj.PATofRs5.96bn(vsest5.94bn),despiteasurprising220bpsjump in R&D; spend to 13.3%. Similarly, the FY15 performance was almost in line of our...

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 & patent challenge pipelines has strengthened presence through the launch of several...

DRL's revenues rose 8.7% YoY to Rs38.4 bn (higher than our estimates of Rs37.3 bn) due to better performance in US, India and PSAI segment. Gross margins decreased by 230bps YoY to 58.2% in Q3FY15 (in line withour estimates of 59%) on account unfavorable currency impact.

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 & patent challenge pipelines has strengthened presence through the launch of several...

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 & patent challenge pipelines has strengthened presence through the launch of several...

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 deriv ed from overseas operations. With a strong research pipeline, it s R&D; is focused in the areas of cancer, diabetes, cardiovascular, inflammation and bacterial infections. Dr. Reddy's offers a portfolio of products and servic es including APIs, custom pharmaceutical services, generic s, biosimilars, differentiated formulations and NCEs. It has one of the largest ANDA & patent challenge pipelines has strengthened presence through the launch of several...

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 deriv ed from overseas operations. With a strong research pipeline, it s R&D; is focused in the areas of cancer, diabetes, cardiovascular, inflammation and bacterial infections. Dr. Reddy's offers a portfolio of products and servic es including APIs, custom pharmaceutical services, generic s, biosimilars, differentiated formulations and NCEs. It has one of the largest ANDA & patent challenge pipelines has strengthened presence through the launch of several...

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 deriv ed from overseas operations. With a strong research pipeline, it s R&D; is focused in the areas of cancer, diabetes, cardiovascular, inflammation and bacterial infections. Dr. Reddy's offers a portfolio of products and servic es including APIs, custom pharmaceutical services, generic s, biosimilars, differentiated formulations and NCEs. It has one of the largest ANDA & patent challenge pipelines has strengthened presence through the launch of several...

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 & patent challenge pipelines has strengthened presence through the launch of several...