Sell Dr Reddys Laboraories; target of Rs 1140: Deven Choksey

Deven Choksey's research report on Dr Reddys Laboraories

For Q2FY26, revenue increased 9.8% YoY (+3.0% QoQ) to INR 88,283 Mn, marginally below our estimate by 1.0%, driven by healthy growth across Europe (+139% YoY), India (+13% YoY), and Emerging Markets (+14% YoY). The performance was partially offset by a 13% YoY decline in North America, reflecting continued price erosion and lower Lenalidomide sales. Growth momentum in branded generics, newly launched consumer healthcare assets, and favorable forex supported overall topline performance. Outlook

We value Dr Reddys Lab at a 19.0x Sep’27 EPS, implying a target price of INR 1,140, as we roll forward our valuation to Q2FY28E. We reiterate our SELL rating on the stock.

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.