Nomura has retained buy rating on Dr Reddy's Laboratories and raised target price to Rs 4,426 from Rs 3,684.
The stock ended up 4.5 per cent at Rs 4,015.55 on Tuesday while the BSE Sensex closed 1011.29 points down (-3.20 per cent) at 30,636.71.Dr.
Reddy's Laboratories Ltd., incorporated in 1984, has a market cap of Rs 66727.23 crore.Investment RationaleNomura said Dr Reddy's near term earnings are dependent on North America generics and it expects 52 per cent of FY22 EPS from the region.
The brokerage sees earnings support on account of new product launches and market share gains in products already launched.
FinancialsDr.
Reddy's Laboratories Ltd.
key Products/Revenue Segments include Pharmaceuticals which contributed Rs 10466.70 crore to sales value (98.50 per cent of total sales); Licence Fees which contributed Rs 55.90 crore to sales value (0.52 per cent of total sales); Service Income which contributed Rs 50.30 crore to sales value (0.47 per cent of total sales); Spent Chemicals which contributed Rs 35.60 crore to sales value (0.33 per cent of total sales); Scrap which contributed Rs 16.10 crore to sales value (0.15 per cent of total sales) and Other Operating Revenue which contributed Rs .90 crore to sales value (0.00 per cent of total sales)for the year ending March 31, 2019.
Promoter/FII HoldingsPromoters held 26.76 per cent stake in the company as of fourth quarter (March 31, 2020), while FIIs held 30.04 per cent, DIIs 14.8 per cent and retail investors 28.11 per cent.