Dr Reddy’s gains over 1% ahead of June quarter results announcement

0
19

Shares of Dr Reddy’s Laboratories gained over a percent on Thursday morning as investors bet on the stock ahead of Q1 results. The numbers will be declared later in the day.

The stock touched an intraday high of Rs 2,118.45 and an intraday low of Rs 2,075.60.

The drug maker is likely to report a four-fold jump in the first quarter of FY19, led by low base of previous year, when sales were affected by the GST rollout. The company will also benefit with sales of US complex generic portfolio holding out despite pricing pressure and lack of major approvals.

India business is expected to grow 30 percent YoY on a favourable base. In the first quarter of FY18, the company posted a profit of Rs 66.6 crore.

A Reuters poll of analyst forecasts an increase in net profit to Rs 302.8 crore. It estimates revenue to rise 21.48 percent YoY to Rs 3946.8 crore in Q1FY19.

HDFC Securities expects topline of Dr Reddy’s to grow 10 percent YoY.

“With no big product launches in the US, Dr Reddy’s to report only 3.6 percent QoQ growth in top line. Like many other companies, it will benefit from favourable base of 1QFY18.

EBITDA margin is likely to be 16-17 percent for the quarter, up by 700 basis points.

Edelweiss Securities too expect revenue growth on QoQ to grow at 3 percent and EBITDA margins at 20 percent.

“Generic Aloxi (to treat chemotherapy induced nausea) launch and full quarter of generic Xenazine (to treat Huntington’s disease) sales, likely to offset competition in generic Renvela (kidney drug) and base erosion,” Edelweiss Securities said in its report.

READ  Netmedscelebrates 4th Anniversary with exciting offers for its patrons

Expect proprietary business to grow 14 percent, on uptick in Zembrace and Sernivo.

At 10:19 hrs Dr Reddys Laboratories was quoting at Rs 2,110.00, up Rs 21.00, or 1.01 percent, on the BSE.

source: moneycontrol

LEAVE A REPLY

Please enter your comment!
Please enter your name here