Motilal Oswal neutral on Dr. Reddy's Laboratories, target price: Rs 4500
Dr. Reddy's Laboratories, incorporated in the year 1984, is a Large Cap company (having a market cap of Rs 75969.18 Crore) operating in Pharmaceuticals sector.
By ETMarkets.com | Updated:
Agencies
Motilal Oswal Financial Services has neutral call on Dr. Reddy's Laboratories with a target price of Rs 4500. The current market price of Dr. Reddy's Laboratories is Rs 4550.
Dr. Reddy's Laboratories, incorporated in the year 1984, is a Large Cap company (having a market cap of Rs 75969.18 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.
While the company delivered 39% YoY earnings growth in FY23, the brokerage expects moderation in the earnings CAGR to 3.6% over FY23-25 due to a high base ofFY23 and limited visibility of potential products to deliver growth over the next two years.
Further, Motilal Oswal believes the valuation already factors in the earnings upside, hence it 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 75969.18 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 RationaleWhile the company delivered 39% YoY earnings growth in FY23, the brokerage expects moderation in the earnings CAGR to 3.6% over FY23-25 due to a high base ofFY23 and limited visibility of potential products to deliver growth over the next two years.
Further, Motilal Oswal believes the valuation already factors in the earnings upside, hence it 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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