Neutral Dr Reddys Labs; target of Rs 1330: Motilal Oswal

Neutral

Motilal Oswal's research report on Dr Reddys Labs

DRRD delivered in-line sales (adj. for NRT acquisition and milestone income) and marginally better operational performance in 3QFy25. Revenue/EBITDA YoY growth was moderate due to lower off-take of g-Revlimid and PSAI business, which was offset to some extent by healthy performance in the Russia market.

Outlook

We lower our earnings estimates by 5%/3% for FY26/FY27, factoring in 1) a gradual pick-up in potential launches in the NA market, thereby limiting visibility for growth beyond g-Revlimid; and 2) price erosion in the base portfolio. We value DRRD at 20x 12M forward earnings to arrive at a TP of INR1,330.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Dr Reddys Labs_24012025_Motilal Oswal