Dr. Reddy's Q4 Review - Niche Launches, Covid-19 Vaccine To Drive Earnings Growth: Motilal Oswal
A healthcare worker prepares a dose of the Russian Sputnik V Covid-19 vaccine at a health clinic in Caracas, Venezuela. (Photographer Matias Delacroix/Bloomberg)

Dr. Reddy's Q4 Review - Niche Launches, Covid-19 Vaccine To Drive Earnings Growth: Motilal Oswal

BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Dr. Reddy’s Laboratories Ltd. delivered a marginally lower-than-expected performance in Q4 FY21, led by-

  1. weak U.S. sales,

  2. moderation in YoY growth in the India business, and

  3. currency headwinds in Russia.

The company is progressing well with building a preventive/curative Covid-19 portfolio and gearing up for niche launches over the near-to-medium term.

We raise our earnings per share estimate by 5%/6% for FY22/FY23E and continue to value the company at a price/earning multiple of 25 times, factoring in -

  1. improved visibility on the commercialisation of limited-competition products in North America,

  2. superior execution in the domestic formulation segment, comprising the Covid and non-Covid portfolios, and

  3. the extended benefit of lower operating costs due to travel restrictions on account of lockdown in India.

Click on the attachment to read the full report:

Motilal Oswal Dr Reddys Q4FY21 Result Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint 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 BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.