Jefferies has reiterated its underperform rating on Dr Reddy’s Laboratories, setting a target price of ₹1,130, implying a potential downside of 11% from the current market price of ₹1,276.90. The company’s Q2 results slightly missed estimates, primarily due to a weaker product mix and increased R&D spending. US growth remained subdued quarter-over-quarter, though base business growth in India rebounded to 9%.
Dr Reddy’s recently completed the acquisition of Nicotineel OTC brands, with synergies expected to be realized in phases. However, Jefferies noted that the absence of major product launches in the US and elevated SG&A costs mean that there are no significant near-term catalysts for the stock.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult with a financial advisor before making any investment decisions.
