Don't dress 'indecently': Gujarat cops to women

Don't dress 'indecently': Gujarat cops to women

Police posters advise women not to dress 'indecently' and to use cellphones with care.
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Cong loyalist who praised Modi

Uttarakhand Guv Aziz Qureshi: A Cong loyalist who praised Modi and sued NDA

'Buy' rating on Dr Reddy’s shares, target price Rs 2,913: Nomura

Jul 03 2014, 08:05 IST
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SummaryDr Reddy’s Laboratories’ (DRRD) Q4FY14 sales for North America were adversely affected by lower injectable sales

Dr Reddy’s Laboratories’ (DRRD) Q4FY14 sales for North America were adversely affected by lower injectable sales; India field force grew 13%, with sales per field force of R0.32 crore/year, which was lower than peers; big brands in India slowed , but line extensions recorded healthy growth; and almost three-quarters of the growth in generic business was driven by new launches .

The management expects the impact of new launches to be limited in FY15 but growth to be driven by market-share gains in existing products.

We retain our ‘buy’ rating on the stock. Concern on earnings growth slowdown in FY15 is a good opportunity to accumulate, in our view. We expect acceleration in earnings growth with EPS growth at 3%, 17% and 27% for FY15F, FY16F and FY17F, respectively. Earnings surprises and P/E expansion over the next 12-18 months may be driven by: a) clarity on the R&D development pipeline; b) visibility on the US pipeline — there is uncertainty on ~33 ANDAs with sales of $8 billion out of 62 pending filings; c) market-share gains and pricing in the US on specific products; d) sustained growth in India and other EMs; and e) surprise in PSAI as segment gross profit is at an eight-year low.

We make marginal change in our estimates (+1%) and reset our 12-month target price at R2,913, based on 18x one-year forward EPS of R162.

Nomura

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