February 08, 2017 / 17:39 IST
Dr. Reddys Laboratories’ (DRRD) Q3FY17 earnings saw an unsustainable rebound in gross margin sequentially, led by seasonally strong quarter for injectables in US, leading to the beat. Revenue, EBITDA and PAT declined 7%, 17% and 19% YoY, respectively. Base business continues to reel under heightened competition and pricing pressures in US, along with halt in Venezuela business.
Management commentary indicated delays in a number of key launches including gGleevec, gCopaxone, gNuvaring, gSuboxone and possibly gDiprivan. Earnings will remain under pressure unless there are niche launches, which are some quarters away. Any positive development post re‐audit by FDA could lead to a sentimental rally. Maintain ‘HOLD’ with TP of INR 3,175 (18x FY19E EPS).
For all recommendations, 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. 
Read More
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!
