The revenues came in higher by 18% at Rs 5,763 crore for the quarter, compared to Rs 4,897 crore in the same period last year.
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var titStr=”;var editw=”; var typevar=”; var pparr= new Array(‘Monitoring your investments regularly is important.’,’Add your transaction details to monitor your stock`s performance.’,’You can also track your Transaction History and Capital Gains.’); var phead =’Why add to Portfolio?’; if(secglbVar ==1) { var stkdtxt=’this stock’; var fltxt=’ it ‘; typevar =’Stock ‘; if(lastRsrs.length>1){ stkdtxt=’these stocks’; typevar =’Stocks ‘;fltxt=’ them ‘; } } //var popretStr =lvPOPRHS(phead,pparr); //$ (‘#poprhsAdd’).html(popretStr); //$ (‘.btmbgnwr’).show(); var tickTxt =’‘; if(typparam1==1) { var modalContent = ‘Watchlist has been updated successfully.’; var modalStatus = ‘success’; //if error, use ‘error’ $ (‘.mc-modal-content’).text(modalContent); $ (‘.mc-modal-wrap’).css(‘display’,’flex’); $ (‘.mc-modal’).addClass(modalStatus); //var existsFlag=$ .inArray(‘added’,newappndStr[1]); //$ (‘#toptitleTXT’).html(tickTxt+typevar+’ to your watchlist’); //if(existsFlag == -1) //{ // if(lastRsrs.length > 1) // $ (‘#toptitleTXT’).html(tickTxt+typevar+’already exist in your watchlist’); // else // $ (‘#toptitleTXT’).html(tickTxt+typevar+’already exists in your watchlist’); // //} } //$ (‘.accdiv’).html(”); //$ (‘.accdiv’).html(appndStr); } }, //complete:function(d){ // if(typparam1==1) // { // watchlist_popup(‘open’); // } //} }); }); } else { var disNam =’stock’; if($ (‘#impact_option’).html()==’STOCKS’) disNam =’stock’; if($ (‘#impact_option’).html()==’MUTUAL FUNDS’) disNam =’mutual fund’; if($ (‘#impact_option’).html()==’COMMODITIES’) disNam =’commodity’; alert(‘Please select at least one ‘+disNam); } } else { AFTERLOGINCALLBACK = ‘overlayPopup(‘+e+’, ‘+t+’, ‘+n+’)’; commonPopRHS(); /*work_div = 1; typparam = t; typparam1 = n; check_login_pop(1)*/ } } function pcSavePort(param,call_pg,dispId) { var adtxt=”; if(readCookie(‘nnmc’)){ if(call_pg == “2”) { pass_sec = 2; } else { pass_sec = 1; } var url = ‘//www.moneycontrol.com/mccode/common/saveWatchlist.php’; $ .ajax({url:url, type:”POST”, //data:{q_f:3,wSec:1,dispid:$ (‘input[name=sc_dispid_port]’).val()}, data:{q_f:3,wSec:pass_sec,dispid:dispId}, dataType:”json”, success:function(d) { //var accStr= ”; //$ .each(d.ac,function(i,v) //{ // accStr+=”+v.nm+”; //}); $ .each(d.data,function(i,v) { if(v.flg == ‘0’) { var modalContent = ‘Scheme added to your portfolio.’; var modalStatus = ‘success’; //if error, use ‘error’ $ (‘.mc-modal-content’).text(modalContent); $ (‘.mc-modal-wrap’).css(‘display’,’flex’); $ (‘.mc-modal’).addClass(modalStatus); //$ (‘#acc_sel_port’).html(accStr); //$ (‘#mcpcp_addportfolio .form_field, .form_btn’).removeClass(‘disabled’); //$ (‘#mcpcp_addportfolio .form_field input, .form_field select, .form_btn input’).attr(‘disabled’, false); // //if(call_pg == “2”) //{ // adtxt =’ Scheme added to your portfolio We recommend you add transactional details to evaluate your investment better. x‘; //} //else //{ // adtxt =’ Stock added to your portfolio We recommend you add transactional details to evaluate your investment better. x‘; //} //$ (‘#mcpcp_addprof_info’).css(‘background-color’,’#eeffc8′); //$ (‘#mcpcp_addprof_info’).html(adtxt); //$ (‘#mcpcp_addprof_info’).show(); 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Dr Reddy’s Laboratories share price rose 1 percent in early trade on November 1 as the company announced its second quarter earnings.
Pharma major Dr Reddy’s Laboratories on October 29 reported a consolidated profit after tax (PAT) of Rs 992 crore for the quarter, up 30% from Rs 762 crore reported in the corresponding period last year (adjusting for extra ordinaries of Rs 78 crore, the adjusted profit is Rs 840 crore).
Sequential growth in profit is 74% from Rs 571 crore in the quarter ended June 30, 2021.
The revenues came in higher by 18% at Rs 5,763 crore for the quarter, compared to Rs 4,897 crore in the same period last year. Sequentially, the consolidated revenue increased by 17% from Rs 4,919 crore reported in the previous quarter.
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Here is what brokerages have to say about the stock and the company post the September quarter earnings:
Macquarie
Macquarie has maintained outperform call on the Dr Reddy’s Laboratories stock, but has cut target price to Rs 5,692 per share. There was a strong comeback on margin front in Q2 after a forgettable Q1, the brokerage said.
Macquarie has raised its FY22–24 EPS estimate by 6-9 percent. Ex-Sputnik V and gRevlimid, the company expects to deliver 14.3 percent EPS CAGR over FY21-24.
Prabhudas Lilladher
Dr Reddy’s (DRRD) Q2FY22 margins show marked improvement even after adjusting for licensing income. We expect earnings momentum to continue with 1) certain COVID-related opportunities in export markets, and 2) pick up in US generic business with cost optimisation beyond FY22.
Further, strong pipeline/new launches will drive steady growth in India and RoW markets.
We expect 15 percent EPS CAGR over FY21-24E and recommend ‘Buy’ with target price of Rs 5,400, 24x Sept 2023E EPS plus Rs300/share for gRevlimid and Sputnik NPV. Delay in key ANDA approvals and escalation to 483s in Duvvada unit are key risks to our call.
Motilal Oswal
We raise our EPS estimate by 4 percent/3 percent for FY22/23E to factor in a) the faster growth in the EMs, b) ramp-up in g-Vascepa, and c) license fee associated with the sale of US and Canada rights for Elyxb (Celecoxib oral solution).
We estimate 24 percent earnings CAGR over FY21-23E, led by sales CAGR of 13 percent in NAM, 16 percent in DF, 21 percent in Europe, and 10 percent in PSAI.
We arrive at price target of Rs 5,470 on a 12-month forward earnings basis. We upgrade the stock to buy based on its niche products lined up for the US market, portfolio expansion/tapping newer regions in Europe/EMs, superior profitability, and the stock’s attractive valuation.
Sharekhan
Robust growth prospects for India business, opportunities from COVID-led portfolio, a sturdy product pipeline, and expected growth in the existing portfolio in the US would likely enable company to tide over pricing pressures in the US and provide ample growth visibility.
We retain buy recommendation on the stock with an unchanged price target of Rs 5,900.
At 09:18 hrs Dr Reddys Laboratories was quoting at Rs 4,682.00, up Rs 11.95, or 0.26 percent on the BSE.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
