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

IIFL 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 4519.5. IIFL recommended to keep stop loss at Rs 4370.

Dr. Reddy's Laboratories, incorporated in the year 1984, is a Large Cap company (having a market cap of Rs 74985.72 Crore) operating in Pharmaceuticals sector.

Dr. Reddy's Laboratories key Products/Revenue Segments include Pharmaceuticals, Licence Fees, Other Operating Revenue, Spent Chemicals, Service Income and Scrap for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 6372.60 Crore, up 4.70 % from last quarter Total Income of Rs 6086.80 Crore and up 6.34 % from last year same quarter Total Income of Rs 5992.40 Crore. Company has reported net profit after tax of Rs 1100.20 Crore in latest quarter.

The company’s top management includes Mr.K Satish Reddy, Mr.G V Prasad, Mr.Leo Puri, Mr.Prasad R Menon, Ms.Shikha Sharma, Mr.Allan Oberman, Ms.Kalpana Morparia, Mr.Sridar Iyengar, Mr.Arun Madhavan Kumar. Company has S R Batliboi & Associates LLP as its auditors. As on 30-09-2022, the company has a total of 17 Crore shares outstanding.

Investment Rationale
The stock has given a descending triangle breakout.

Promoter/FII Holdings
Promoters held 26.71 per cent stake in the company as of 30-Sep-2022, while FIIs owned 25.87 per cent, DIIs 24.6 per cent.