Buy Dr. Reddy's Laboratories, target price Rs 5220: Motilal Oswal Financial Services

Motilal Oswal Financial Services has buy call on Dr. Reddy's Laboratories with a target price of Rs 5220. The current market price of Dr. Reddy's Laboratories is Rs 4999. Motilal Oswal Financial Services recommended to keep stop loss at Rs 4880.

Dr. Reddy's Laboratories, incorporated in the year 1984, is a Large Cap company (having a market cap of Rs 83241.46 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 31-03-2023, the company has reported a Consolidated Total Income of Rs 6453.70 Crore, down -5.76 % from last quarter Total Income of Rs 6848.50 Crore and up 15.31 % from last year same quarter Total Income of Rs 5596.80 Crore. Company has reported net profit after tax of Rs 952.50 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 31-03-2023, the company has a total of 17 Crore shares outstanding.

Investment Rationale
Stock has been making higher highs from the last 4weeks and came out of its consolidative zone

Promoter/FII Holdings
Promoters held 26.7 per cent stake in the company as of 31-Mar-2023, while FIIs owned 27.25 per cent, DIIs 23.03 per cent.