Buy Dr Reddy's Laboratories, target price Rs 4,210: Dharmesh Shah

Dharmesh Shah of ICICI Direct has a buy call on Dr. Reddy's Laboratories Ltd. with a target price of Rs 4210.0. The current price of Dr. Reddy's Laboratories Ltd. is Rs 3894.4 Time period given by the analyst is 1-3 Days when Dr. Reddy's Laboratories Ltd. price can reach defined target. . Dharmesh Shah recommended to keep a stoploss at Rs 3730 .

Dr. Reddy's Laboratories Ltd., incorporated in 1984, has a market cap of Rs 63927.23 crore.

Investment Rationale


Bullish piercing line pattern on the weekly chart at 38.2 per cent retracement of early April rally. RSI in buy mode.

Financials

For the quarter ended March 31, 2020, the company reported consolidated sales of Rs 4431.80 crore, up 1.09 per cent from last quarter sales of Rs 4383.80 crore and up 10.34 per cent from last year's same quarter sales of Rs 4016.60 crore. The company reported net profit after tax of Rs 770.60 crore in the latest quarter.

Promoter/FII Holdings

Promoters held 26.75 per cent stake in the company as of March 31, 2020 while FIIs held 30.15 per cent, DIIs 14.09 per cent and public and others 28.74 per cent.