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This Article is From Nov 28, 2022

Dr. Reddy’s - Strategic Initiatives, Enhanced Focus On The Branded Business, A Positive: Nirmal Bang

Dr. Reddy’s - Strategic Initiatives, Enhanced Focus On The Branded Business, A Positive: Nirmal Bang
Scientists at Dr. Reddys Laboratories Ltd.'s intergrated product development facility.(Source: Company website)

BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.  

Nirmal Bang Report

We hosted the management of Dr. Reddy's Laboratories Ltd. at our Annual Investor Conference to discuss the business outlook. The company has reiterated its guidance of single-digit growth in the U.S. and double-digit growth in other markets with 25% margins. But, growth and margins would not be linear.

In the U.S., the company continues to face annual double-digit price erosion. In the domestic market too, due to its acute-heavy portfolio, the company is growing at lower than industry rate.

However, excluding Covid, Dr. Reddy's is growing in double digits in almost all other markets. Also, the company is working on its domestic business to deliver market-beating growth in the medium term.

We like Dr. Reddy's management's strategic decision-making ability and its enhanced focus on the branded business.

However, restructuring and shift in focus from Gx to BRx markets are likely to weigh on near to medium term base business growth. Also, capital allocation is still high towards developed markets complex products and the innovative pipeline.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

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