Angel Broking neutral on Dr Reddys Laboratories
Angel Broking has maintained a neutral rating on Dr Reddys Laboratories (DRL) in its February 21, 2013 research report. The research firm expects net sales to report a 9.8% CAGR to Rs 11,662cr and adjusted EPS to record a 2.3% CAGR to Rs 92.9 over FY2012-14E.
February 23, 2013 / 17:43 IST
Angel Broking has maintained a neutral rating on Dr Reddys Laboratories (DRL) in its February 21, 2013 research report. The research firm expects net sales to report a 9.8% CAGR to Rs 11,662cr and adjusted EPS to record a 2.3% CAGR to Rs 92.9 over FY2012-14E.
"DRL reported more or less just-in 3QFY2013 top-line and bottom-line performance. The company's net sales increased by 3.5% yoy (23% adjusted for the base effect). The growth came in on back of 24% yoy (adjusted) in the US and Emerging Markets. On the EBIT margins came in at 15.0% V/s expected 15.8%. Consequently the net profit came in at Rs 363cr, a dip of 29.1%, mostly in line with expectations of Rs 339cr.DRL reported net sales of Rs 2,865cr for 3QFY2013, registering 23.0% yoy growth, which was a tad lower than our estimate of Rs 2,700cr. The U.S. and Emerging markets grew by 24% yoy (adjusted) were the key growth drivers for the company. The domestic market reported a strong growth of 12.0% yoy. On the positive side the PSAI segment posted a robust growth of 28.0% yoy during the quarter. The company's EBIT margin came in at 15.0% V/s expected 15.8% and contracting by 11.7%, leading to a dip of 29.1% to Rs 363cr during the quarter.DRL has reinforced its earlier revenue guidance of US$2.7bn by FY2013E with RoCE of 25%. We expect net sales to report a 9.8% CAGR to Rs 11,662cr and adjusted EPS to record a 2.3% CAGR to Rs 92.9 over FY2012-14E. We maintain our neutral on the stock," says Angel Broking research report.Shares held by Mutual Funds/UTI 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.To read the full report click on the attachment 
Read More
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
