Dr. Reddy’s Laboratories Limited (NSE: DRREDDY) is a renowned pharmaceutical company that is engaged in the development and marketing of high-quality medicines both in India and globally. The company’s stock price is currently at Rs. 4533, as of May 2023, with investors showing optimism towards its future growth prospects.
Dr. Reddy’s recent partnership announcement with Aster Pharmacy to market its products in the UAE and GCC indicates that the company is ready for further expansion in the years to come.
Recently, Dr Reddy’s Laboratories released their results, let us take a look at them:-
The pharmaceutical behemoth Dr. Reddy’s Lab reported a combined net profit of 959 crore rupees for the fourth quarter of FY23, more than doubling year over year. Revenue also gained momentum year over year. On a quarter-over-quarter basis, the performance for Q4FY23 was poor across all important metrics. A hefty dividend of 800% has been issued by the corporation for its shareholders. The pharmaceutical company had a significant increase in PAT in Q4FY23 of 10-folds or 996% from a profit of 87.5 crores in Q4FY22, while sales increased by 16% to 6,296.8 crores from 5,436.8 crores in the same quarter of the previous year. However, PAT and revenue both decreased by 23% and 7%, respectively, on a quarter-over-quarter basis in Q4FY23.
In Q4FY23, growth in the North American (27% YoY), European (12% YoY), and Indian (32% YoY) markets was the primary driver of revenue growth year over year. However, a 7% YoY fall in revenue in Emerging Markets had an impact. Sequentially, sales decreased owing to declines in North America (-17% QoQ) and Emerging Markets (-15% QoQ), which were largely offset by growth in Europe (growth of 15% QoQ) and India (growth of 14% QoQ).
EBITDA was 1,631 crore, up 26% YoY but down 17% QoQ, while it was. Revenue represented 25.9% of EBITDA. Gross margin dropped from 59.2% in Q3FY23 and 52.9% in Q4FY22 to 57.2% in Q4FY23.
This article will explore the potential share price target of Dr. Reddy’s from 2023 to 2030 and provide an assessment of whether it could be a promising stock to invest in.
Latest news about Dr Reddy’s Laboratories
➤ The business suggested a final dividend of 40 (800%) per equity share of 5 for the fiscal year 2022–2023 during a meeting on Wednesday. The dividend will be paid on or after five days have passed after the shareholders at the annual general meeting (AGM) declared the final dividend.
➤ The agreement between Mayne Pharma and Dr. Reddy’s has been finalized, and the Indian company will now take over the Australian company’s US generics operations.
➤ In order to develop and market COYA 302 for the treatment of neurodegenerative illnesses, Houston-based Coya Therapeutics, Inc. struck a deal with Dr. Reddy’s Laboratories, Ltd. to licence its planned biosimilar Abatacept.
You can buy Dr Reddy’s Laboratories shares from the following trading platforms:
|When||Maximum Price||Minimum Price|
The table above displays the predicted share prices of Dr. Reddy’s Laboratories Limited for the year 2023. As the year progresses, the minimum price remains relatively stable, hovering around the range of ₹2,400.12 to ₹3,991.87, while the maximum price gradually increases from ₹3,744.18 in April 2023 to ₹6,088.94 in December 2023.
This indicates a bullish trend and suggests that investors could see a substantial return on their investment by the end of the year. The growth percentage for Dr. Reddy’s Laboratories appears to be healthy, with an upward trend throughout the year.
Overall, the predicted share prices for 2023 suggest an uptrend for the company and indicate a positive outlook for its future growth prospects.
|When||Maximum Price||Minimum Price|
The table above represents the share price predictions for Dr. Reddy’s Laboratories Limited for the year 2024. The minimum and maximum prices for the stock in January 2024 are ₹4,930.31 and ₹6,409.41, respectively, while the minimum and maximum prices for December 2024 are ₹6,557.52 and ₹8,524.77, respectively.
The average target for the year 2024 appears to be optimistic, with a steady increase in the maximum share price over the months. The predicted share prices suggest an upside potential for the investors, indicating a positive outlook for the company.
Overall, the target for Dr. Reddy’s Laboratories in 2024 seems promising and could be an attractive investment opportunity for those looking for long-term growth potential. Based on these predictions, it would be recommended to consider Dr. Reddy’s Laboratories as a potential stock to buy for 2024.
|When||Maximum Price||Minimum Price|
Looking at the table, Dr. Reddy’s share price is expected to continue its upward trend in 2025. The average target for the year is ₹8,855.28, with a maximum target of ₹10,340.69 and a minimum target of ₹6,688.67. This represents a potential return of 23.6% from the current price level.
It’s worth noting that the share price may experience some volatility throughout the year, with some months being more bearish than others. However, overall, the outlook remains positive for investors who are bullish on the pharmaceutical industry and Dr. Reddy’s growth prospects.
With a solid track record of developing and marketing high-quality medicines, and the recent partnership with Aster Pharmacy to expand its reach in the UAE and GCC, Dr. Reddy’s is well-positioned to deliver strong returns for investors in the years to come.
|Year||Maximum Price||Minimum Price|
According to the table, Dr. Reddy’s Laboratories’ share price target for 2026 to 2030 shows a mixed trend. In 2026, the maximum share price target is ₹7,238.48, while the minimum target is ₹5,066.94. This indicates a possible bearish trend, with the minimum price being lower than the previous years’ minimum prices.
However, in 2028, the maximum target price jumps significantly to ₹11,074.87, indicating a possible bullish trend. In 2029 and 2030, the maximum target price continues to rise, with the highest target price of ₹25,334.68 being predicted for 2030. The minimum target price also increases over the years, indicating that the market is likely to remain volatile.
Overall, the average return potential of Dr. Reddy’s Laboratories’ shares over the next five years appears to be positive, although investors should keep a close eye on market conditions and analyst recommendations.
Financial Condition of Dr. Reddy’s Laboratories: Last 5 years
|Profit before tax||1,350.40||2,335.80||1,885.70||2,883.50||3,061.40|
|Price to earning||36.46||23.68||25.60||38.48||32.75|
Dr Reddy’s financial statement from March 2018 to March 2022 shows a steady growth in revenue and profits. The company’s revenue increased from ₹14,281 crore in March 2018 to ₹21,545.2 crore in March 2022, registering a percentage growth of around 51%. During the same period, the operating profit increased from ₹2,351.2 crore to ₹3,767.7 crore, although with a few ups and downs.
Net profit also showed a steady growth from ₹946.8 crore in March 2018 to ₹2,182.5 crore in March 2022. However, there was a dip in the profit after tax (PAT) in March 2020, but it picked up again in the subsequent year.
The earnings per share (EPS) increased to 270.66 as of May 2023 which indicates the company’s growth potential. The price-to-earnings ratio (P/E) was 16.74 in May 2023, indicating the investors’ confidence in the company’s future.
The dividend payout ratio also increased over the years, indicating the company’s commitment to its shareholders. Despite a few fluctuations, the company’s revenue and profit growth were consistent, with a maximum revenue of ₹21,545.2 crore and a minimum of ₹14,281 crore during the last five years.
Overall, Dr Reddy’s has shown a positive trend in revenue growth, profit growth, and dividend payout, making it an attractive investment option for investors.
Prabhudas Lilladher has given a reduce recommendation on the stock of Dr. Reddy’s Laboratories, with a target price of Rs 4500.
Sharekhan has expressed a positive outlook towards Dr. Reddy’s Laboratories by providing a hold rating on the stock and setting a target price of Rs 5100
ICICI Direct has recommended a buy rating on Dr. Reddy’s Laboratories, with a target price of Rs 5210, indicating their bullish outlook on the company’s stock.
According to Gaurav Bissa of Stock Radar, purchase Dr. Reddy’s Laboratories with a target price of Rs.5000
Bernstein has downgraded its price prediction for Dr Reddy’s Laboratories to Rs 4953. The downgrade was primarily motivated by short-term gaps in the US growth narrative and weak or erratic emerging market performance.
KR Choksey recommends buying Dr Reddy’s Laboratories with an expected price of Rs 5155.
Motilal Oswal insisted buyers with a neutral recommendation and at a price target of Rs 4500.
It is anticipated that Dr Reddy’s Laboratories per share price will increase to ₹6,089 by the end of 2023.
The share price target of Dr Reddy’s Laboratories for 2025 might be around ₹10,340.69.
What is the risk-free rate for investing in Dr. Reddy’s Laboratories?
The current risk-free rate is 7.28000000%, and it is subject to daily updates.
The per share price of Dr Reddy’s Laboratories might reach around ₹25,334.68 by the end of 2030.
Can Dr Reddy be classified as a multinational company?
Yes, Dr Reddy’s Laboratories is a pharmaceutical company headquartered in Hyderabad, India, with operations in multiple countries, making it a multinational corporation.
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To sum up, Dr Reddy’s Laboratories has exhibited consistent growth in its income, PAT, revenue, and profit over the last five years, indicating a promising investment opportunity. According to the data, the projected share prices range from Rs 5,066.94 in 2026 to Rs 25,334.68 in 2030, further reinforcing the company’s potential.
Moreover, analysts from Prabhudas Lilladher, Sharekhan, and ICICI Direct have all recommended buying the stock, with target prices ranging from Rs 4,900 to Rs 5,460, which confirms the positive outlook for the company’s future growth prospects.
Thus, investing in Dr Reddy’s Laboratories shares for the long-term can be a wise decision.
What did we learn?
- 1 Latest news about Dr Reddy’s Laboratories
- 2 How to buy Dr Reddy’s Laboratories (NSE:DRREDDY) shares?
- 3 Share Price Prediction of Dr. Reddy’s Laboratories: 2023 to 2030
- 4 Financial Condition of Dr. Reddy’s Laboratories: Last 5 years
- 5 Dr Reddy’s Laboratories share price target by Experts
- 5.1 Dr Reddy’s Laboratories share price target by Prabhudas Lilladher
- 5.2 Dr Reddy’s Laboratories share price target by Sharekhan
- 5.3 Dr Reddy’s Laboratories share price target by ICICI Direct
- 5.4 Dr Reddy’s Laboratories share price target by Stock Radar
- 5.5 Dr Reddy’s Laboratories share price target by Bernstein
- 5.6 Dr Reddy’s Laboratories share price target by KR Choksey
- 5.7 Dr Reddy’s Laboratories share price target by Motilal Oswal
- 6 FAQS
- 6.1 Will the share price of Dr Reddy’s Laboratories increase in 2023?
- 6.2 Write the share price target 2025 of Dr Reddy’s Laboratories .
- 6.3 What is the risk-free rate for investing in Dr. Reddy’s Laboratories?
- 6.4 Write the share price target 2030 of Dr Reddy’s Laboratories.
- 6.5 Can Dr Reddy be classified as a multinational company?
- 7 Conclusion