Buy Large Cap Pharma Stock, It Has Grown By 48.88% In 3-years

Share price of Dr Reddy's Laboratories Limited has gone up by 48.88% to Rs 4,311.25 per share in three years. Dr Reddy's Laboratories Limited, is a large cap pharma company based in Hyderabad. ICICI direct feels that the share price of this large cap company may grow by 24%.

Dr Reddy's Laboratories was established in 1986 with its generics business in India. Today it is a trusted name in the healthcare industry consistently serving the needs of millions of patients with high quality, affordable and innovative medicines across therapy areas.

Its portfolio has over 200 products covering the whole spectrum of disease areas spanning gastroenterology, oncology, pain management, cardiovascular, dermatology, urology, nephrology, rheumatology and diabetes. 7 of the brands are listed in "Top-300 of the Indian Pharma Market" and many others hold leadership positions in their respective categories.

The Q3FY23 results of Dr Reddy's Laboratories Limited was robust. Its revenue grew by 27.2% YoY to Rs 6,331 crore, mainly driven by the US on the back of favourable currency impact and gRevlimid. The adjusted profit after tax was Rs 1,251 crore, it was up by 81.1% yearly.

ICICI Direct has suggested investors to buy shares this large cap company and shared a target price of Rs 5,210 per share. In a report from ICICI Direct, a buy recommedation was given "Maintain BUY due to ramp up across geographies on back of new launches, strong FCF generation to be driven by gRevlimid and other niche launches and calibrated cost approach based on better product mix Target Price and Valuation: We value Dr Reddy's at Rs 5,210 i.e. 21x FY25E EPS of Rs 241.8+ NPV of Rs 131 for gRevlimid."

Disclaimer:
The stock has been picked from the brokerage report of ICICI Direct, Greynium Information Technologies and the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.