Dr. Reddy's Q4 Results Review - Miss On Operating Performance: Dolat Capital

"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..Dolat Capital Report.Dr. Reddy’s Laboratories Ltd.'s Q4 FY24 sales were in-line with estimates while Ebitda was a miss. Profit after tax came above estimate due to lower-than-expected tax rate. Revenues at Rs 70.8 billion in Q4 FY24 grew 17% YoY excluding divestment of non-core brands in the base. Ebitda stood at Rs 17.8 billion (+35%/-11.6% YoY/QoQ) and Ebitda margin at 25.2% expanded by 333 basis points YoY on better gross margin offset by higher selling, general and administrative and research and development expenses. We assume gRevlimid sales contribution for Q4 FY24 to be ~$115 million and base business margin at 18% was below our estimate. While we are positive on structural growth story of Dr. Reddy’s, recent rally in the stock price limits upside from current levels. Thereby, we downgrade our rating to ‘Reduce’ from Accumulate with revised SOTP based target price of Rs 6,450 (earlier Rs 6,505) valuing at 25 times FY26E base earnings per share supported by new launches, volume growth and abating price erosion, plus a gRevlimid net present value of Rs 416/share. Key risks are: - higher price erosion in the U.S., any regulatory issues related to its facilities..Click on the attachment to read the full report:.Dr. Reddy's Laboratories Q4 Results: Profit Surges 36%, Beats Estimates.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 - Miss On Operating Performance: Dolat Capital

Sequential decline in base business volumes impact U.S. sales; modest India growth

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Dr. Reddy's Q4 Results Review - Miss On Operating Performance: Dolat Capital

Sequential decline in base business volumes impact U.S. sales; modest India growth

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