Motilal Oswal Financial Services neutral on Dr. Reddy's Laboratories, target price: Rs 4680
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.
By ETMarkets.com | Updated:
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Motilal Oswal Financial Services has neutral call on Dr. Reddy's Laboratories with a target price of Rs 4680. The current market price of Dr. Reddy's Laboratories is Rs 5004.15.
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.
The brokerage values the company at 22x 12M forward earnings of the base business and add INR 170 as NPV of g-Revlimid to arrive at our TP of INR4,680. As the moderation in earnings and valuations is factored in the upside adequately, the brokerage maintains its Neutral rating on the stock.
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.
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.
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Investment RationaleThe brokerage values the company at 22x 12M forward earnings of the base business and add INR 170 as NPV of g-Revlimid to arrive at our TP of INR4,680. As the moderation in earnings and valuations is factored in the upside adequately, the brokerage maintains its Neutral rating on the stock.
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.
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