Dolat Capital's research report on Dr. Reddy's Laboratories
DRL reported numbers below our estimates as the revenues were lower due to sales disruption impacted in EU and lower channel offtake impacted in Russia, coupled with US pricing pressure and competitive scenario. The company also took tax charge of ` 374mn in Q4FY18 due to US tax reforms.
Outlook
We have reduced our earnings by ~10% to factor in further delays in gNuvaRing and likely competition in gSuboxone. At the current market price of ` 1,953, the stock trades at 19x FY19E EPS of ` 101 and 14x FY20E EPS of ` 136.
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