Dr. Reddy's Labs Q3 Results Review - North America, PSAI Drive Earnings: Motilal Oswal

NDTV Profit’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 NDTV Profit’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 better-than-expected performance for the quarter, led by healthy traction in the North America and pharmaceutical services and active ingredients segments. The India business has been witnessing moderation in YoY growth for three quarters now. Dr. Reddy's continues to invest on its product pipeline, and marketing initiatives across key markets. The benefits are expected from FY25 onwards. We raise our earnings estimates by 7%/5%/4% for FY24/FY25/FY26 factoring in: market share expansion in key products, new launches, andbetter operating leverage. We value Dr. Reddy's on an SOTP basis (22 times 12 months forward price/earning for the base business and adding net present value of Rs 90 for g-Revlimid) to arrive at our target price of Rs 5,540. Even after raising our earnings estimates, we expect a modest 3% earnings compound annual growth rate over FY24-26. Further, the product-specific concentration of earnings remains elevated for Dr. Reddy's. Reiterate 'Neutral'..Click on the attachment to read the full report:.Dr. Reddy’s Labs Q3 Results Review - Beat On Revenue, But Earnings Inline: Systematix.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Dr. Reddy's Labs Q3 Results Review - North America, PSAI Drive Earnings: Motilal Oswal

Higher working capital needs reduce free cash flow for the quarter

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Dr. Reddy's Labs Q3 Results Review - North America, PSAI Drive Earnings: Motilal Oswal

Higher working capital needs reduce free cash flow for the quarter

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