Dr. Reddy's Laboratories Ltd. share price target

Company is expected to fare well on the back drop of continued growth in revenue along with innovation of new drugs and medications. Hence, we reiterate our BUY rating on the stock with a revised target price of Rs. 5,437 using a target multiple of 23x FY23E adj. EPS. Topline aided by new Medications Q2FY22 revenue grew 17.8% YoY to Rs. 5,787cr, driven by significant growth in Global Generics segment (+19.0% YoY to Rs. 4,747cr) and robust performance from Proprietary Products segment (Rs. 123cr vs Rs. 10cr in Q2FY21, on the account of...

segment rose 1,132.00% to Rs 123.20 crore (accounting for 2.07% of total sales). Sales of (accounting for 17.12% of total sales). Sales of Global Generics segment has gone up 19.03% Others segment has gone up 13.96% to Rs 59.60 crore (accounting for 1.00% of total sales). Inter-segment sales came down from Rs 175.10 crore to Rs 161.80 crore....

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.

Selling and administration expenses rose from 23.30% to 25.86%. Other income rose 23.88% to Rs 107.9 crore. Provision for interest fell 17.17% to Rs 19.3 crore. Provision for depreciation fell 2.87% to Rs 283.9 crore....

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..