Nomura has a buy on Dr Reddy’s Labs, target price Rs 3,200

INSUBCONTINENT EXCLUSIVE:
Nomura has a buy rating on Dr Reddy’s Laboratories in the long term with a target price of Rs 3,200
Shares of Dr Reddy’s Laboratories ended down 0.2% at Rs 2,816.25 on Monday while BSE Sensex closed 70.99 points down at 40,938.72. Company
FinancialsFor the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 4800.80 crore, up 24.90% from last quarter
sales of Rs 3843.60 crore and up 30.22 % from last year same quarter sales of Rs 3686.60 crore
The company has reported net profit after tax of Rs 1095.10 crore in the latest quarter
The company’s top management includes Dr.Bruce L A Carter, Mr.Allan Oberman, Mr.Bharat N Doshi, Mr.G V Prasad, Mr.K Satish Reddy, Mr.Leo
Puri, Mr.Prasad R Menon, Mr.Sridar Iyengar, Ms.Kalpana Morparia, Ms.Shikha Sharma
Company has S R Batliboi - Associates LLP as its auditors
As on 30-09-2019, the company has a total of 166,145,748 shares outstanding
Investment RationaleAmneal is the first generic company to receive approval for a generic version of Nuvaring, said Nomura
Dr Reddy’s and Teva are the other known filers, it said
Amneal will have first-mover advantage; hence, the upside for Dr Reddy’s is likely to be curtailed to an extent, it said.