Buy Dr. Reddy's Laboratories, target price Rs 4900: Prabhudas Lilladher

Prabhudas Lilladher has buy call on Dr. Reddy's Laboratories with a target price of Rs 4900. The current market price of Dr. Reddy's Laboratories is Rs 4338.4.

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 72169.74 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 Russia sales to sharply decline QoQ due to destocking. US sales to remain steady. Domestic formulation biz will be aided by product licensing, CIDMUS acquistion. Commentary on margins key montiorable.

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.