Motilal Oswal has given Buy recommendation for Dr Reddy’s Labs recommended buy rating on the stock with a target price of Rs 5160 in its research re with a target price of Rs. 5160 in its research report issued on Jan 29, 2022
Motilal Oswal’s research report on Dr Reddy’s Labs
Dr Reddy’s Labs (DRRD)’s 3QFY22 results were below our estimates, weighed by moderation in Europe / Pharma Services and Ingredients (PSAI), lower other income, and higher tax rate. The overall YoY growth in earnings was driven by healthy growth in India / the US and sustained momentum in other emerging markets. We cut our EPS estimates by 5.5%/3.5%/3.5% for FY22E/FY23E/FY24E to factor in a) increased price erosion across key markets, b) delay in business from the Sputnik vaccine, and c) a gradual pickup in the PSAI business.
We value DRRD’s base business EPS of INR198 at a 12M forward P/E multiple of 25x and add INR210 per share of NPV from the g-Revlimid opportunity. Accordingly, we arrive at Target Price of INR5,160 on a blended basis. Maintain Buy.
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At 17:30 Dr Reddys Laboratories was quoting at Rs 4,311.10, up Rs 6.90, or 0.16 percent.
It has touched an intraday high of Rs 4,350.00 and an intraday low of Rs 4,256.95.
It was trading with volumes of 14,748 shares, compared to its thirty day average of 14,040 shares, an increase of 5.04 percent.
In the previous trading session, the share closed up 2.04 percent or Rs 86.25 at Rs 4,304.20.
The share touched its 52-week high Rs 5,613.65 and 52-week low Rs 4,135.90 on 07 July, 2021 and 19 March, 2021, respectively.
Currently, it is trading 23.2 percent below its 52-week high and 4.24 percent above its 52-week low.
Market capitalisation stands at Rs 71,746.82 crore.