Dr. Reddy’s Laboratories Limited (REDY) – Strong prospects from trade generics

Dr. Reddy’s Laboratories Limited (REDY) (Q4FY23)

Introduction

Dr. Reddy’s Laboratories Limited, together with its subsidiaries, operates as an integrated pharmaceutical company worldwide. It operates through Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Others segments.

The company’s Global Generics segment manufactures and markets prescription and over-the-counter finished pharmaceutical products that are marketed under a brand name or as a generic finished dosages with therapeutic equivalence to branded formulations. This segment also engages in the biologics business.

The PSAI segment manufactures and markets active pharmaceutical ingredients and intermediates, which are principal ingredients for finished pharmaceutical products. This segment also provides contract research services; and manufactures and sells active pharmaceutical ingredients and steroids in accordance with the specific customer requirements.

The Others segment engages in developing therapies in the fields of oncology and inflammation; research and development of differentiated formulations; and provides digital healthcare and information technology enabled business support services. The therapeutic categories primarily include gastro-intestinal, cardiovascular, anti-diabetic, dermatology, oncology, respiratory, stomatology, urology, and nephrology.

Highlights

Dr. Reddy’s Laboratories has ventured into the trade generics business, launching its dedicated division called RGenX. Trade generics are directly distributed through wholesalers and are not marketed as branded medicines. This move aligns with Dr. Reddy’s Laboratories’ larger goal of reaching over 1.5bn patients by the year 2030.

Stock performance

Dr. Reddy’s Laboratories’ stock price showed an upward trend in past 3-months. It increased by 5.97% during the period. The stock price increased by 12.39% during the last 1 year. The stock has a 52-week high of ₹5,273.15 and its 52-week low is ₹3,997.

In the past 3 years, the stock has given returns of 29.11%. REDY has a 50-day moving Avg. and 200-day moving Avg. of ₹4,801.61 and ₹4,556.66, respectively.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– Economic Value Added Analysis
– Discounted Cash Flow Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages: 35

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