July 29, 2016 / 12:49 IST
Religare's research report on Dr Reddys
We downgrade DRRD to SELL (from HOLD) and revise our Mar’17 TP to Rs 2,800 (from Rs 3,280) on a weak Q1 and muted outlook. Valuing the stock at 20x FY18 EPS, we slash our FY17E/FY18E EPS by 41%/23% as we build in (a) a sharp decline in the US base business, (b) non-renewal of the McNeil contract and (c) lower margins (700bps decline vs. estimated earlier) owing to higher marketing costs for proprietary products (Zembrace/Sernivo) and a lower US business. Valuations at 24x FY18 remain expensive.
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!
