Dr. Reddy’s Q4 Results Review - U.S., India Drive Earnings Growth: Motilal Oswal

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Dr. Reddy’s Laboratories Ltd. delivered Q4 FY24 revenue in line with our estimate. However, Ebitda was lower than expected due to higher selling, general and administrative expenses and research and development spending. In addition to U.S. generics/branded generics segments, Dr. Reddy's is enhancing its offering through joint ventures/partnerships/acquisitions in nutraceuticals, vaccine, women’s health and dietary supplement space.  We maintain our earnings estimates for FY25/FY26. We value Dr. Reddy's on SOTP basis (22 times 12 months forward earnings for base business and Rs 90 per share for gRevlimid) to arrive at a target price of Rs 6,070.  After delivering 30% YoY earnings growth in FY24, we expect earnings growth to moderate to a 3.5% compound annual growth rate over FY24-26, partly due to a gradual build-up of market share of g-Revlimid. The investment in JV with Nestle and in biosimilar segment should give commercial benefits after FY26. We believe that the valuation adequately factors in the upside in earnings. Maintain Neutral rating on the stock..Click on the attachment to read the full report:.Dr. Reddy's Q4 Results Review - Miss On Operating Performance: Dolat Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Dr. Reddy’s Q4 Results Review - U.S., India Drive Earnings Growth: Motilal Oswal

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