Dr. Reddy’s Laboratories Ltd., incorporated in the year 1984, is a Large Cap company (having a market cap of Rs 86424.26 Crore) operating in Pharmaceuticals sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 4850.80 Crore, down -3.22 % from last quarter Total Income of Rs 5012.40 Crore and up 7.26 % from last year same quarter Total Income of Rs 4522.50 Crore. Company reported net profit after tax of Rs 539.40 Crore in latest quarter.
Investment Rationale
The brokerage raises EPS estimate by 5%/6% for FY22/FY23E and continue to value DRRD at a P/E multiple of 25x, factoring in (a) improved visibility on the commercialization of limited-competition products in North America (NAM), (b) superior execution in the Domestic Formulation (DF) segment, comprising the COVID and non-COVID portfolios, and (c) the extended benefit of lower operating costs due to travel restrictions on account of lockdown in India. Accordingly, the brokerage arrives at Target Price of INR5,670 on a 12M forward earnings basis.
Promoter/FII Holdings
Promoters held 26.7 per cent stake in the company as of March 31, 2021, while FIIs held 29.4 per cent, DIIs 14.9 per cent and public and others 29 per cent.
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