Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusinessStocks

Hold Dr Reddy's Laboratories target of Rs 3255: ICICI Direct

ICICI Direct recommended hold rating on Dr Reddy's Laboratories with a target price of Rs 3255 in its research report dated January 28, 2020.

February 13, 2020 / 12:55 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

ICICI Direct's research report on Dr Reddy's Laboratories

Revenues grew 13.8% YoY to Rs 4397.1 crore, mainly due to strong growth in Europe, Russia, other CIS markets. Domestic revenues grew 13.3% YoY to Rs 763.6 crore. US revenues grew 7.9% YoY to Rs 1599.9 crore. EBITDA margins (excluding impairment charges) expanded 263.4 bps to 23.5% mainly due to lower R&D and employee expenses. EBITDA grew 28.2% YoY to Rs 1031.3 crore. Adjusted PAT grew 56.2% YoY to Rs 781.6 crore. Delta vis-à-vis EBITDA was mainly due to lower tax outgo and interest cost offset by lower other income.

Outlook

Overall, it is still a work in progress for the company with product/segment identification for growth and cost rationalisation drive likely to continue for the next few quarters. We arrive at our target price of Rs 3255 based on 18x FY22E EPS of ~Rs 180.9.

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.

Broker Research
first published: Feb 4, 2020 12:29 pm

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!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347