Views on Dr Reddy 3QFY2014 results - Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP - Research - Pharma, Angel Broking) on Dr Reddy 3QFY2014 results:

"Dr Reddy's results were mostly in line with estimates. On the sales front, Dr Reddy's sales came in at Rs. 3,534cr V/s Rs. 3,588cr, posting a yoy growth of 22.7%. The sales growth during the quarter was aided by the global generic sales, which posted a yoy growth of 41%, mainly driven by the USA and Emerging markets, which posted a yoy growth of 76% and 25% respectively. The OPM of 27.6% came in much ahead of 25.4%, as against 17.7% in the corresponding period of the previous year. However, a higher tax provision during the quarter, lead the reported net profit come in at Rs. 618cr V/s expectation of Rs. 736cr, a yoy growth of 63.5% over the last corresponding period. Also during the quarter, the company had reversal of the impairment charge on the intangible assets amounting to Rs. 49.7cr, excluding which the adjusted net profit of Rs. 584cr, a yoy growth of 54.3%. We maintain our accumulate on the stock with a price target of Rs. 3008."

Dr Reddy's (CMP:Rs. 2677 / TP: Rs. 3008/ Upside: -12.4%)

Source : Equity Bulls

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