Dr. Reddy’s Laboratories saw its stock rise 2.50% in a weak market after Nomura upgraded it to a ‘Buy’ with a target price of ₹1,500. The brokerage cited the stock’s underperformance and its growth potential in GLP-1 peptide APIs and biosimilars as key drivers for the upgrade.
Nomura highlighted risks from high reliance on gRevlimid revenues but noted that these concerns are already priced in. The company’s rising R&D and SG&A expenses, which increased by 29% and 27% respectively in 1HFY25, reflect significant investments in clinical trials and infrastructure. Additionally, the ₹25 billion capex for FY25 focuses on high-growth areas like injectables, underscoring strategic expansion efforts.
As of 10:09 AM, Dr. Reddy’s Laboratories’ stock was trading at ₹1,307.30, up ₹31.90 (+2.50%), on the NSE. The stock opened at ₹1,275, climbed to a high of ₹1,308.90, and touched a low of ₹1,271.65.
With its current trajectory, the stock remains close to its 52-week high of ₹1,421.49, with market participants optimistic about its recovery and long-term growth prospects.
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