Dr. Reddy’s profits fall by 1 percent, know brokerage’s view on the stock

The profit of the giant pharma company Dr. Reddy’s in the first quarter ended June 30, 2021, of the financial year 2021-22, declined by 1 percent to Rs 570.8 crore from Rs 579 crore in the first quarter of last year. Had been.

In the first quarter, the company’s income has seen a growth of 11 percent and it has come to Rs 4,919 crore as compared to Rs 4,417.5 crore in the first quarter of last year.

The company’s EBITDA declined from Rs 1,162.2 crore to Rs 1,019 crore in the first quarter on a year-on-year basis, while the EBITDA margin declined from 26.3 percent to 20.7 percent.

The brokerage on Dr. Reddy’s says that the company’s Q1 has shown the impact of higher SG&A cost. At the same time, the supply of the Sputnik V vaccine from Russia is limited. Due to this, the company may lose the opportunity of vaccine demand in India. Brokers have reduced the EPS estimate for FY22/FY23 by 14%/10%. On the other hand, earnings from North America have been flat, while a fall in prices will reduce the benefit of increasing market share.

EFFERIES INVESTMENT Opinion on DR REDDYS

JEFFERIES has a Buy Rating on DR REDDY’S and has a lower target of Rs.6209 for the Share at Rs.5761.

MS’s Investment Opinion on DR REDDYS

MS has an Overweight Rating on DR REDDY’S and has a target of Rs 5859 for the Share.

Investment Opinion of GS on DR REDDYS

GS has given a Neutral Rating on DR REDDY’S and has a target of Rs 5110 for the stock.

CS’s investment opinion on DR REDDYS

CS has downgraded the rating on DR REDDY’S to Neutral and has lowered the target of the share from Rs 5200 to Rs 4900.