Centrum Broking maintains buy on Dr Reddy’s, target price Rs 3,000

Centrum Broking has maintained buy rating on Dr. Reddy’s Laboratories, in the long term with a target price of Rs 3,000. The stock ended up 2.18% at Rs 2,739.95 on Friday while the Sensex closed 337.35 points up at 36,981.77.

Company Financials

For the quarter ended 30-06-2019, the company has reported consolidated sales of Rs 3843.60 crore, down -4.31 % from last quarter sales of Rs 4016.60 crore and up 3.30 % from last year same quarter sales of Rs 3720.70 crore. The company has reported net profit after tax of Rs 660.20 Crore in latest quarter.


Investment Rationale

The key asset of generic Nuvaring has received a major CRL, the average time for which could vary from 9-15 months, said Centrum. The review could get priority, depending on the filing status of other generics, said Centrum. The timeline shifts of the launch of key assets would make these opportunities dearer to competitors as time passes, said Centrum. However, management is confident on US market growth given the new launches and pending product pipeline, the brokerage said.