Moneycontrol PRO

Buy Dr. Reddy’s Laboratories, target of Rs 5460: Sharekhan

Sharekhan is bullish on Dr. Reddy’s Laboratories has recommended buy rating on the stock with a target price of Rs 5460 in its research report dated January 25, 2023.

January 27, 2023 / 10:51 PM IST
  • bselive
  • nselive
Todays L/H

Sharekhan's research report on Dr. Reddy’s Laboratories

Dr. Reddy’s Laboratories (DRL) continued to register strong numbers in Q3FY2023 also, led by even stronger growth in the US and recovery in the other markets. US revenue growth was driven by new product launches, increase in volumes, and favorable forex movement; partly offset by price erosion. Consolidated revenues grew by 27.2% y-o-y to Rs. 6,789.8 crore; gross margins improved by 452 bps y-o-y to 70.5% and OPM improved by 589 bps y-o-y to 28.7%; PAT grew by a strong 75.4% y-o-y to Rs. 1,243.9 crore aided by strong growth in operating profits with improved new product launches and favorable products mix, despite increase in interest cost and taxes y-o-y.


The stock is currently trading at an attractive valuation of 14.5x/12.4x its FY2024E/25E. We maintain our Buy recommendation on the stock with unchanged PT of Rs. 5,460.

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.

Dr. Reddy’s Laboratories - 27 -01-2023 - khan

Broker Research
first published: Jan 27, 2023 10:51 pm