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Accumulate Dr Reddy's Laboratories; target of Rs 5400: Dolat Capital Market

Dolat Capital Market recommended accumulate rating on Dr. Reddy's Laboratories with a target price of Rs 5400 in its research report dated April 12, 2021.

April 13, 2021 / 01:55 PM IST
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Dolat Capital Market's research report on Dr Reddy's Laboratories

Russia’s COVID vaccine Sputnik V has been recommended for use in India by the expert committee. Dr. Reddy’s has partnered with RDIF (Russian Direct Investment Fund) to distribute (in India) first 250mn dosages of Sputnik V. Currently in Phase 3 in India, DCGI in Feb’21 had asked for immunogenicity data before being granted an emergency approval. Once approved, this would be the third vaccine post Covaxin (Bharat Biotech) and Covishield (SII and Oxford-Astrazeneca) in India. While the final approval is yet to be received, we believe that once approved it could contribute ~R5.9bn of earnings translating into NPV of Rs35 per share (assuming price of Rs225 per dose). We have factored in 45% of distribution and marketing benefits for Dr. Reddy’s.


At CMP, stock is trading at 22x FY23E EPS of Rs216 +Rs40 NPV for Sputnik V + Rs175 for gRevlimid. We maintain Accumulate with a target price of Rs5400.

For all recommendations report, click here

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

Broker Research
first published: Apr 13, 2021 01:46 pm

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