Business »  Topic »  Dr Reddy’s Laboratories Rating: Reduce; Stock price overvaluing opportunities

Dr Reddy’s Laboratories Rating: Reduce; Stock price overvaluing opportunities


The company has demonstrated very effective cost control with 250bps margin expansion in FY19 and our estimates assume additional benefit of ~100bps base business margin expansion from the ongoing efforts.

Generic Copaxone, Nuvaring and Suboxone are the key high-value product opportunities for DRL.

Dr. Reddy’s Laboratories (DRL’s) stock price has appreciated ~10% over the last few days without any positive development and fundamental change. We believe the valuation is now overpricing the key product opportunities (Nuvaring, Copaxone etc) and cost-control benefits. The company has demonstrated very effective cost control with 250bps margin expansion in FY19 and our estimates ...


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