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    Hold Dr. Reddy's Laboratories, target price Rs 5100: Sharekhan by BNP Paribas

    Synopsis

    Dr. Reddy's Laboratories, incorporated in the year 1984, is a Large Cap company (having a market cap of Rs 73305.57 Crore) operating in Pharmaceuticals sector.

    ​Dr Reddy's LaboratoriesAgencies
    Promoters held 26.7 per cent stake in the company as of 31-Mar-2023, while FIIs owned 27.25 per cent, DIIs 23.03 per cent.
    Sharekhan by BNP Paribas has hold call on Dr. Reddy's Laboratories with a target price of Rs 5100. The current market price of Dr. Reddy's Laboratories is Rs 4387.85.

    Dr. Reddy's Laboratories, incorporated in the year 1984, is a Large Cap company (having a market cap of Rs 73305.57 Crore) operating in Pharmaceuticals sector.

    Dr. Reddy's Laboratories key Products/Revenue Segments include Pharmaceuticals, Licence Fees, Other Operating Revenue, Spent Chemicals, Service Income and Scrap for the year ending 31-Mar-2022.

    Financials
    For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 6453.70 Crore, down -5.76 % from last quarter Total Income of Rs 6848.50 Crore and up 15.31 % from last year same quarter Total Income of Rs 5596.80 Crore. Company has reported net profit after tax of Rs 952.50 Crore in latest quarter.

    The company’s top management includes Mr.K Satish Reddy, Mr.G V Prasad, Mr.Leo Puri, Mr.Prasad R Menon, Ms.Shikha Sharma, Mr.Allan Oberman, Ms.Kalpana Morparia, Mr.Sridar Iyengar, Mr.Arun Madhavan Kumar. Company has S R Batliboi & Associates LLP as its auditors. As on 31-03-2023, the company has a total of 17 Crore shares outstanding.

    Investment Rationale
    The brokerage expects it to clock in ~ 6.3% and ~9.1% CAGR rise in revenue and net income, respectively, over FY23-FY25E. At CMP, the stock trades at ~15.3x/14.3x it’s FY24E/FY25E.

    Furthermore, Sharekhan downgrades it to HOLD with a revised PT of Rs. 5,100 though. The brokerage values it at a lower multiple than before and downgrade it to HOLD to factor in the uncertainty surrounding impact of gRevlimid on its profitability, going forward, given loss of exclusivity on 2.5 and 20.0 mg strengths of it by the end of Q4FY23.

    Promoter/FII Holdings
    Promoters held 26.7 per cent stake in the company as of 31-Mar-2023, while FIIs owned 27.25 per cent, DIIs 23.03 per cent.



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    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

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