Kotak || Dr Reddy's Laboratories ➔DRRD has been highlighting India as a key focus market, particularly over the past 5-6 years. To that effect, it has announced a slew of in-licensing deals and acquisitions post FY2020. ➔Adjusted for these as well as divestments, our analysis of DRRD’s domestic business suggests a mere ~7.5% organic sales CAGR over FY2017-24E. Further pick-up in base domestic growth and profitability will be critical in the post gRevlimid era for DRRD. ➔While the prevailing US tailwinds provide stability, absence of any meaningful approvals for DRRD stays a concern. ➔At ~25X ex-Revlimid FY2026E EPS, we believe the stock is fairly priced. Retain REDUCE with FV of Rs5,825. #DRRD #Pharmaceuticals #nseindia #bseindia #medicines #kotak #Fintech #Finance #EarningsReports #Exports #manufacturing
As per IQVIA, DRRD’s organic domestic sales reported a 7.6% CAGR, over FY2017-24E. IQVIA domestic sales CAGR, March fiscal year-ends, 2017-24E (%). #CAGR #Sales #Pharmaceuticals #Finance
DRRD – key therapeutic drivers in the domestic portfolio #KeyDrivers #PharmaIndustry #Therapy #DRRD
DRRD – quarterly sales March fiscal year-ends, 2022-24E (Rs bn, %) #DRRD #Sales #RevenueGrowth #Q4FY24
DRRD – quarterly R&D expenses March fiscal year-ends, 2022-24E (Rs bn, %) #ResearchExpenses #pharmacy #medicines
DRRD – quarterly EBITDA March fiscal year-ends, 2022-24E (Rs bn, %) #EBITDA #Margins #Profitability #PharmaSales
DRRD – quarterly PAT March fiscal year-ends, 2022-24E (Rs bn, %) #PharmaIndustry #Profitability #PAT #Margins
DRRD – quarterly domestic sales March fiscal year-ends, 2022-24E (Rs bn, %) #Domesticsales #Pharmaceuticals #DRRD
DRRD – quarterly US generics sales March fiscal year-ends, 2022-24E (US$ mn, %) #GenericSales #USPharma #Revenues #Medicine
DRRD – quarterly Europe, Russia and other EM sales March fiscal year-ends, 2022-24E (Rs bn, %) #Sales #Revenues #PharmaIndustry #Medicine
Gross margins in global generics declined, while PSAI (Pharmaceutical Services and Active Ingredients) margins improved sequentially by ~1,160 bps. DRRD – quarterly gross margins, March fiscal year-ends, 2020-24E (%) #GrossMargins #Pharmaceuticals #Profitability