Buy Dr. Reddy's Laboratories, target price Rs 4750: Axis Securities

Axis Securities has buy call on Dr. Reddy's Laboratories with a target price of Rs 4750. The current market price of Dr. Reddy's Laboratories is Rs 4384.35. Time period given by analyst is one year when Dr. Reddy's Laboratories Ltd. price can reach defined target.

Dr. Reddy's Laboratories Ltd., incorporated in the year 1984, is a Large Cap company (having a market cap of Rs 72863.73 Crore) operating in Pharmaceuticals sector.

Dr. Reddy's Laboratories Ltd. key Products/Revenue Segments include Pharmaceuticals, Licence Fees, Other Operating Revenue, Spent Chemicals, Service Income and Scrap for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 5596.80 Crore, up 3.76 % from last quarter Total Income of Rs 5394.10 Crore and up 15.38 % from last year same quarter Total Income of Rs 4850.80 Crore. Company reported net profit after tax of Rs 86.50 Crore in latest quarter.

Investment Rationale
The brokerage expects the launch of a new product like gRevlimid would aid in the company’s near-term growth and scale-up in existing products like gVascepa, gKuvan and gVasostrict would further support it. The pipeline of new launches comprises Complex Generics and Biosimilars, which may add revenue from FY24E onwards. Considering the existing and upcoming strong product pipeline for the company, the brokerage recommends a BUY rating on the stock with a TP of Rs 4,750.

Promoter/FII Holdings
Promoters held 26.72 per cent stake in the company as of 31-Mar-2022, while FIIs owned 25.16 per cent, DIIs 24.79 per cent.