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SMR
08-10-2015, 06:00 AM
Dr. Reddy's Laboratories Limited is an integrated global pharmaceutical company that is engaged in providing medicines. The Company operates in three segments: Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Proprietary Products. Global Generics segment consists of its business of manufacturing and marketing prescription and over-the-counter finished pharmaceutical products, marketed under a brand name (branded formulations) or as generic finished dosages with therapeutic equivalence to branded formulations (generics). PSAI segment includes the Company's business of manufacturing and marketing active pharmaceutical ingredients and intermediates, also known as API or bulk drugs. Proprietary Products segment consists of its differentiated formulations business, its new chemical entities (NCEs) business, and its dermatology focused specialty business operated through Promius Pharma.

Official Website: www.drreddys.com

SMR
08-10-2015, 06:01 AM
For 1QFY2016, Dr Reddy’s Laboratories (DRL) posted lower-than-expected results on the sales and net profit fronts, while the OPM came in better than expected. On the sales front, the company posted a 6.8% yoy growth to Rs3,758cr V/s an expected Rs4,000cr, mainly driven by Global generics. Global generics registered a yoy growth of 8%, while the PSAI segment posted a yoy growth of 1%. On the operating front, the gross margins came in at 67.1% V/s 64.6% in 1QFY2015, mainly on back of improved sales from Europe and India. This aided the OPM to come in at 26.2% V/s 23.2% in 1QFY2015, and V/s an expected 23.3%. Consequently, the PAT came in at `626cr V/s an expected Rs642cr and V/s Rs550cr in 1QFY2015, a growth of 13.7% yoy. We recommend our neutral view on the stock. Results better on operating front: The Company posted a top-line growth of 6.8% yoy for the quarter to Rs3,758cr, mainly driven by Global generics. Global generics grew by 8% yoy to Rs3,096.1cr, while the PSAI segment grew by 1% yoy to Rs561cr. The key driver of growth in the Global generics business was Europe (Rs191cr), which posted a yoy growth of 43%. On the operating front, the gross margin came in at 67.1% V/s 64.6% in 1QFY2015, mainly on back of improved sales from Europe and India. This aided the OPM to come in at 26.2% V/s 23.2% in 1QFY2015, and V/s an expected 23.3%. Consequently, the PAT came in at Rs626cr V/s an expected Rs642cr and V/s Rs550cr in 1QFY2015, a growth of 13.7% yoy. Outlook and valuation: We expect net sales to grow at a CAGR of 18.6% to Rs20,842cr and adjusted EPS to record a 20.7% CAGR to RS189.5 over FY2015-17E. On back of valuations, we recommend a neutral rating on the stock.

Source: http://www.angelbroking.com/