Views on Dr. Reddy's Laboratories Ltd 1QFY2017 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP- Research Pharma, Angel Broking) on Dr. Reddy's Laboratories Ltd 1QFY2017 Results:

"For 1QFY2017, the company posted bad numbers. It posted sales of INR 3235cr V/s INR 3900cr expected, V/s INR 3,758crin 1QFY2016, a YoY de-growth of 14.0%. Sales growth of company was under pressure on back of muted de-growth in all its major markets. The Generic (INR 2663.8cr), a YoY de-growth of 14.0%, lead by USA, Europe and Emerging markets, which posted de-growth of 16%, 16% and 26% respectively. Indian markets on the other hand posted a YoY growth of 10.0%. The PSAI (INR 469.2cr), posted de-growth of 16%. The proprietary products and others posted a flat YoY growth of 1.0% to end the period at INR 101.5cr. Lower sales, lead the company posted EBIT of 3.4% V/s 15.6% expected and 20.2% in 1QFY2016. However, other income of around INR 61cr V/s INR 34cr in 1QFY2016, lead the net profit of INR 126cr V/s INR 520cr expected and V/s INR 626cr in 1QFY2016, a YoY de-growth of 80.0%. We maintain our NEUTRAL rating on the stock."

Shares of DR.REDDY'S LABORATORIES LTD. was last trading in BSE at Rs.2937.25 as compared to the previous close of Rs. 2960.65. The total number of shares traded during the day was 82496 in over 7930 trades.

The stock hit an intraday high of Rs. 2976.45 and intraday low of 2925.1. The net turnover during the day was Rs. 243786950.

Source : Equity Bulls

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