KR Choksey's research report on Dr Reddys Laboratories
Dr. Reddy beat our revenue estimates (+3.7%) due to strong double-digit across geographies. EBITDA was largely in-line with our estimate (+2.4%). However, Adj. PAT missed our estimate due to higher-than-expected finance cost and tax expenses. We largely maintain our FY26E estimates at INR 74.2 anticipating momentum in new launches, particularly in India and North America, where we expect the company to introduce several high-value, limited-competition products over FY26E, a positive outlook remains in Russia which will lead to market share gains and the launch of rituximab biosimilar in Europe by Feb-2025E.
Outlook
We largely maintain a PE multiple of 17.9x (previously: 18.0x) to FY26E EPS and arrive at a target price of INR 1,329/share (previously: INR 1,350). We upgrade our rating to “HOLD” from “REDUCE”, which will have an upside potential of 4.5%.
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.
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!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
