Company Overview
Dr. Reddy Laboratories is a Pharmaceutical company Head quarters in Hyderabad, Andhra Pradesh. The Founder was Mr. Anji Reddy Passes away on March 15, Mr. G.V Prasad was Chairman & Ceo, Mr. Satish Reddy is the Vice Chairman and M.D of the Company. Dr. Reddy Laboratiries Ltd. having 190 medications, 60 lively pharmaceutical ingredients (APIs) for drug manufactures analytic kits, critical care, and biotechnology harvest. It has high level of vertical integration as almost 75 percent of API is basis internally.
Company Revenue Background
Dr. Reddy Laboratories has posted highest ever quarterly performance for the quarter ending March 2013. The Revenues from operations on consolidated basis increased by around 26 percent at Rs.3339.94 crores vs Rs.2658.45 crores YoY. In service profit jumped about 46 percent at about Rs.579.64 crores as against Rs.397.32 crores in the preceding quarter. The net profit missile by 67 percent at Rs.570.89 crore for the quarter as compared to Rs.342.70 crore. Earnings per Share for the quarter stood at Rs.33.61. On the margins front; in commission profit margin jumped 240bps at 17.35 percent whereas net profit margins expanded sharply by 420 bps at 17.09 percent.
Revenues from the US generics grew by 31 percent at Rs.1141 crores from Rs.873 crores YoY. Revenues from up-and-coming markets generics grew 25 percent at Rs.584 crores vis-a-vis Rs.466 crores. Indian generic revenues grew by subdued 9 percent at Rs.348 crores from Rs.320 crores in Q4FY12. Pharmaceutical services and Active ingredients section revenues increased sharply by 36 percent at Rs.1014 crores from Rs.748 crores in Q4FY12. Dr. Reddy Laboratories Ltd. has initiate eighteen novel generic products, filed fourteen new product registrations and filed seventeen Drug Master Files globally. Dr Reddy’s collaboration with Merck Serono to co-develop a portfolio of biosimilar compounds in oncology has long-drawn-out its presence in select emerging markets. Visit Profit Krishna to know more about Dr.Reddy Laboratries Limited.
Valuation
Among healthy product channel, strong growth across all characteristics and strong market share in key products; The Company’s revenue brook looks visible. We deem the Dr. Reddy Laboratories is trading at an attractive valuation at 20.41x and 17.32x of FY14EPS of Rs.115.08 and FY15EPS of Rs.135.65. We Bet to Grab Share in Range of Rs. 2315-2300 for Target of Rs. 2800 in Time Period of 6-9 Months.
NSE India Symbol: DRREDDY
BSE India Symbol & Code: DRREDDY & 500124