12 May , 2025 By : Debdeep Gupta
Dr Reddy's Laboratories shares are in focus on May 12 post-strong March quarter results, announced in the post-market hours on May 9. The pharma firm reported 22 percent year-on-year increase in net profit, to reach Rs 1,594 crore. Its revenue for the quarter rose 8.6% YoY to Rs 8,506 crore.
This positive momentum was attributed to growth in new product launches, the NRT acquisition, and improved segment-wise performance. Further, CEO Erez Israeli projected double-digit growth for FY26 along with his wish to resume manufacturing in the US while effectively navigating tariff risks.
On the other hand, its gross margin fell 250 basis points quarter-on-quarter, marking a third consecutive sequential fall. Reasoning this as a major reason, Emkay Global continues to maintain 'Reduce' on the stock and the same target price of Rs 1,050.
It also pointed out rising pricing pressures in the core US portfolio, especially for gSuboxone, the largest contributor excluding gRevlimid. Therefore, urging a recalibration of near-term estimates.
Meanwhile, Goldman Sachs has rated the stock 'Neutral' with a price target of Rs 1,200 per share. JP Morgan has an 'Underweight' review at Rs 1,060 as target price. Citi rated 'Sell' at target price of Rs 1,110.
On the contrary, Nomura's 'Buy' rating comes at a target price of Rs 1,575. As per the firm, the Q4 performance was higher than forecasts, and sales, EBITDA, and profit beat estimates by 4-12-33 percent, respectively. Higher other operating income and sales in North America, Europe, and Russia also stood higher than expectations.
At 10:00 am, the shares were trading at a gain of 0.79 percent.
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