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Angel Broking sees Dr Reddy's Q2 net at Rs 191cr
Broking house, Angel Broking expects that Dr Reddys is to post net sales of Rs 1,247 crore and net profit of Rs 191 crore in Q2FY07. It has recommended hold rating on the stock.
Broking house, Angel Broking expects that Dr Reddy's Laboratories is to post net sales of Rs 1,247 crore (Rs 12.47 billion), up 116% and net profit of Rs 191 crore (Rs 1.91 billion), up 115.1% in Q2FY07. Its operating profit margin is to be seen at 20.5%. The earnings for FY07 are likely to be at Rs 30.7 per share.
It is confident about Dr Reddy's and has recommended hold rating on the stock.
Outlook on Pharmaceutical Sector
The report says, "For Q2FY2007, large Indian Pharmaceutical companies especially Ranbaxy and DRL are expected declare a robust performance. Simvastatin (Ranbaxy and DRL) and Finasteride would be the key growth drivers. These products, which were launched towards the fag end of June'06, would reflect fully during Q2FY2007 aiding robust performance by these companies. On the other hand, the Midcap Indian Pharma segment will post a mixed set of numbers, while performance of the MNC Pharmaceutical space is expected to be lackluster."
"From an investment perspective, given the competitive scenario in the generic space and opportunities in the CRAMS segment, we recommend investment in the CRAMS segment. Our top picks in the sector are Cadila Healthcare, NPIL, Wockhardt, Shasun Chemicals, JUBL and Marksans Pharmaceutical."
