Analysts continue to bet on Dr Reddy’s Grevlimid hopes

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Some analysts estimate gRevlimid’s contribution to be between $150 million and $160 million.

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To buy to sell Dr. Reddys Laboratories to share

Most brokerages maintained their positive stance on Dr. Reddy’s Laboratories after the company reported its highest-ever sales and operating profit in the September quarter.

Analysts are basing their bullish stance on the launch of the generic Revlimid, as management expects it to contribute significantly to earnings in the second half of the current fiscal year.

Some analysts estimate the contribution between 150 and 160 million dollars.

Here are some of the major brokerages and their position on the stock:

Brokerage Evaluation Price Target (Rs.) Upside potential (%)
macquarie Surpass 4,915 10.2
nomura To buy 5,552 24.5
Morgan Stanley Overweight 5,099 14.3
Motilal Oswal To buy 5,180 16.2
DAM Capital To buy 4,932 10.6
InCred Hold 4,435 -0.5

Macquarie believes the company’s September quarter results were better than expected. He called the quarter full time, where gRevlimid lived up to expectations.

Nomura says Dr Reddy’s is laying the groundwork to diversify its presence in multiple markets. The brokerage further states that successful execution and clarity of its moves can drive up the stock’s valuation multiple in due course. He expects China’s rising product filing rate to contribute significantly to earnings over the next 3-4 years.

Morgan Stanley believes Dr. Reddy’s core business is stabilizing and September quarter results were largely driven by Revlimid. However, he warned that potential competition from Suboxone Generic is a major risk in the future.

Motilal Oswal maintained its earnings per share (EPS) estimates for Dr. Reddy’s for the current and future fiscal year to take into account gRevlimid sales, moderating sales and profitability of the PSAI business of society and continued price erosion in the US generic base. Company. However, he remains positive on the company’s ANDA pipeline and growth prospects in India.

Of the 42 analysts who follow Dr Reddy’s, 35 of them have a buy recommendation on the stock. Of the other seven, six have a hold rating while one has a sell call.

Shares of Dr Reddy’s Laboratories are trading up 2.4% as of 9:30 a.m. at 4,562.20 rupees and are among the top gainers in the Nifty 50 index.