Moneycontrol
Get App
Last Updated : May 22, 2020 05:07 PM IST | Source: Moneycontrol.com

Accumulate Dr. Reddy's Laboratories; target of Rs 4326: Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on Dr. Reddy's Laboratories with a target price of Rs 4326 in its research report dated May 21, 2020.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Prabhudas Lilladher's research report on Dr. Reddy's Laboratories


We continue to believe that DRRD is one of the best play in large-cap pharma space a) due to its control on overhead expenses, b) focus on domestic business, c) injectable pipeline for US and EU, d) net cash on books and e) resolution for all major FDA issues. Over FY21-22E, DRRD will likely see change is business mix with high margin domestic formulation (17% of revenue FY20) contributing more to the revenue. DRRD had already recognized (even earlier than its peers) about challenging environment in the US market and accordingly reduced capital allocation.


Outlook


We expect normalized growth in India formulations however EU and EMs to be major growth drivers to refill the lower growth in US-Gx and Russia for 1HFY21E. We change our earnings estimate marginally and continue to assign 24x PE on FY22E and arrive at new TP Rs4326(Rs4030). We maintain 'Accumulate' rating.




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.



Moneycontrol Ready Reckoner
Now that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.
Get best insights into Options Trading. Join the webinar by Mr. Vishal B Malkan on May 28 only on Moneycontrol. Register Now!

First Published on May 22, 2020 05:07 pm
Sections
Follow us on