Dr. Reddy's Laboratories Ltd. share price target

The company already has launched Sputnik-V in the Indian Market with the capacity to manufacture 26 Cr doses in a year. Further, the investigation is ongoing in the US court against few healthcare professionals from Ukraine and other CIS countries for improper payment practices.

Dr. Reddy's Labs (DRRD) delivered a miss on earnings in 1QFY22, affected by a) higher price erosion in North America (NAM) sales, b) the deferment of offtake by DRRD's customer in the Pharma Services and Active Ingredients (PSAI) segments, and c) quarterly lumpiness in the Tender business in the Russia segment. DRRD exhibited strong growth in Domestic Formulations...

DRRD delivered a strong performance led by the volume growth and new product launches across these markets. We expect revenue and PAT CAGR of 10.3% and 29.3% respectively over the period FY21-FY24E and we recommend a BUY with TP of INR 6,000/share, implying an upside of 11%.

Dr. Reddy's Laboratories Ltd (DRREDDY) offers a portfolio of products and services including APIs, custom pharmaceutical services, generics, biosimilars, and differentiated formulations. The major therapeutic areas of focus are gastrointestinal, cardiovascular, diabetology, oncology, pain manageme..

The Cost synergies from Wockhardt acquisition and strong product pipeline should help improve margins in the long term. Biosimilar products and cell therapies (for oncology patients) are expected to act as long-term growth catalysts for the company. Hence, we reiterate our...

Therefore, we recommend Buy with a revised target price of INR 5,700.

Europe was partly offset by decline in North America Generics (NAG). Pharmaceutical Services and Active Ingredients (PSAI) segment revenue rose 10% to Rs 791.50 crore in Q4 FY21 over Q4 FY20....

US remains a key driver, contributing ~37% to revenues as of FY21. DRL has a strong pending pipeline comprising 92 ANDAs (47 Para IV filings, 23 FTFs) and three NDAs under 505 (b) (2) route. We expect US sales to grow...

We marginally reduce our estimate by 1-2% for FY22E-23E, due to delay in launch of key molecules (gCopaxone, gVascepa and gNuvaring) along with increased overhead costs, higher freight costs and key clinical trials. DRRD recently received another CRL for gCopaxone, which would delay the launch by 4-6months, while new generic launches in gVescepa (by Hikma) and...