Dr Reddy's Reiterates Double-Digit Growth; Shares Hit Record
Dr. Reddy's said it is on track to achieve consistent double-digit average revenue growth, 25% Ebitda, and a patient reach of over 1.5 billion.
Shares of Dr Reddy's Laboratories Ltd. hit a record high on Wednesday after it said it was on track to achieve on an average double-digit growth in revenue and operating profit in the current fiscal.
The company said in its annual report that it is on track to achieve consistent double-digit average revenue growth, 25% Ebitda, 25% return-on-capital employed, and a patient reach of over 1.5 billion.
"Our efforts towards strengthening our core businesses and building businesses of the future will together take us closer to our aspirations," the company said in its annual report released on Tuesday.
Going ahead, the company said its medium-term areas of focus include injectables and complex oral solid dosage forms, as well as OTC brands and direct-to-consumer channels, whereas focus in the long term will be on biosimilars, immune-oncology drugs, differentiated offerings such as drug-device combinations, digital solutions, etc.
In the near term, the company plans to continue focusing on building big brands and winning in chosen therapy areas through a differentiated portfolio and inorganic play, while also driving productivity improvement.
In addition, it will further scale up in its major markets, including Russia, China, Brazil, and South Africa, and add new geographies by leveraging its in-house global portfolio of generics and biosimilars and seeking in-licensing opportunities.
"In the longer term, our focus would be to build a differentiated portfolio including nutritional solutions, biologics, NCEs/NBEs as well as offerings like disease management & direct-to-customer," it said.
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Shares of the company rose as much as 2.24% to a record high of Rs 6,512.65 apiece. It pared gains to trade 2% higher at Rs 6,499 apiece as of 11:59 a.m. This compares to a 0.57% decline in the NSE Nifty 50 Index.
The stock has risen 12.05% on a year-to-date basis and 15.23% in the last 12 months. Total traded volume on the NSE so far in the day stood at 1.99 times its 30-day average. The relative strength index was at 57.45.
Out of 30 analysts tracking the company, 14 maintain a 'buy' rating, 12 recommend a 'hold,' and 14 suggest a 'sell,' according to Bloomberg data. The average 12-month consensus price target implies a downside of 4.8%.
