2QFY2018 Result Update | Pharmaceutical
November 24, 2017
Dr. Reddy’s Laboratories
REDUCE
CMP
`2,361
Performance Highlights
Target Price
`2,040
Y/E March (` cr)
2QFY2018 1QFY2018 % chg (qoq) 2QFY2017
% chg (yoy)
Investment Period
12 months
Net sales
3,546
3,316
6.9
3,586
(1.1)
Gross profit
2,170
1,990
9.1
2,278
(4.7)
Operating profit
649
306
112.3
579
12.1
Stock Info
Adj. net profit
285
59
382.1
295
(3.3)
Sector
Pharmaceutical
Source: Company, Angel Research
Market Cap (` cr)
39,172
Net Debt (` cr)
2,839
Dr Reddy’s Labs (DRL) posted poor results for 2QFY2018, which were much lower
Beta
0.4
than expectations. The sales came in at `3,546cr (`3,700cr expected) v/s. `3,586cr,
52 Week High / Low
3,247/1902
a yoy de-growth of 1.1%. Global Generics at `2,862cr, posted a yoy de-growth of
Avg. Daily Volume
48,076
1.0%, while PSAI at `119cr, registering a yoy de-growth of 2.0%. On operating front,
Face Value (`)
5
the EBDITA came in at 18.3% (19.7% expected) v/s. 16.2% in 2QFY2017. R&D
BSE Sensex
33,562
expenses were at 11.8% of sales in 2QFY2018 v/s. 14.5% of sales in 2QFY2017.
Nifty
10,342
Consequently, the PAT came in at `285cr (`594cr expected) v/s. `295cr in 2QFY2017,
Reuters Code
REDY.BO
a yoy de-growth of 3.3%. We maintain our Reduce.
Bloomberg Code
[email protected]
A subdued quarter: The sales came in at `3,546cr (`3,700cr expected) v/s. `3,586cr,
a yoy de-growth of 1.1%. Global Generics at `2,862cr, posted a yoy de-growth of
Shareholding Pattern (%)
1.0%, while PSAI at `119cr, registered a yoy de-growth of 2.0%. The Global Generics,
Promoters
26.8
which forms 81% of overall sales, saw dip in its key growth market USA (`1,432cr),
MF / Banks / Indian Fls
17.2
which posted a dip of 11.0% yoy, while Indian sales at `637cr posted a growth of
FII / NRIs / OCBs
45.7
2.0%. The USA market continued to reel under the pricing pressures, while Indian
Indian Public / Others
10.4
sales were under the pressure on the back of GST. On operating front, the EBDITA
came in at 18.3% (19.7% expected) v/s. 16.2% in 2QFY2017. R&D expenses were at
11.8% of sales in 2QFY2018 v/s. 14.5% of sales in 2QFY2017. Consequently, the PAT
Abs. (%)
3m 1yr
3yr
came in at `285cr (`594cr expected) v/s. `295cr in 2QFY2017, a yoy de-growth of
Sensex
6.3
29.3
17.8
3.3%.
Dr Reddy
16.4
(24.3)
(33.0)
Outlook & Valuation: We expect net sales to grow at a CAGR of 5.1% to
`15,548cr and adjusted EPS to post a CAGR of 18.5% to end the period at `102
3-year Daily Price Chart
5,000
in FY2019E. We recommend a Reduce.
4,500
4,000
Key financials (IFRS Consolidated)
3,500
Y/E March (` cr)
FY2016
FY2017
FY2018E
FY2019E
3,000
Net sales
15,471
14,081
13,734
15,548
2,500
% chg
4.4
(9.0)
(2.5)
13.2
2,000
Net profit
2,001
1,204
1,158
1,691
1,500
% chg
(9.8)
(39.8)
(3.8)
46.0
1,000
Adj net profit
2,357
1,204
1,158
1,691
% chg
6.3
(48.9)
(3.8)
46.0
Adj. EPS (`)
138.2
72.6
69.9
102.0
Source: Company, Angel Research
EBITDA margin (%)
24.6
16.1
17.7
20.2
P/E (x)
17.1
32.5
33.8
23.2
RoE (%)
19.7
9.6
9.2
12.4
Sarabjit Kour Nangra
RoCE (%)
18.7
7.5
7.7
10.3
+91 2 39357600 Ext: 6806
P/BV (x)
3.1
3.2
3.0
2.7
[email protected]
EV/Sales (x)
2.6
3.0
3.1
2.7
EV/EBITDA (x)
10.4
18.5
17.4
13.6
Source: Company, Angel Research; Note: CMP as of November 22, 2017
Please refer to important disclosures at the end of this report
1
Dr. Reddy’s Laboratories | 2QFY2018 Result Update
Exhibit 1: 2QFY2018 performance (IFRS, consolidated)
Y/E March (` cr)
2QFY2018
1QFY2018 % chg (qoq) 2QFY2017 % chg (yoy) 1HFY2018 1HFY2017
% chg
Net sales
3,546
3,316
6.9
3,586
(1.1)
6,862
6,714
2.2
Other income/(loss)
11
42
(72.5)
64
53
246
-
Total income
3,557
3,357
6.0
3,650
(2.5)
6,915
6,960
(0.6)
Gross profit
2,170
1,990
9.1
2,278
(4.7)
4,160
5,091
(18.3)
Gross margin (%)
61.2
60.0
63.5
60.6
75.8
SG&A expenses
1,103
1,176
(6.2)
1,177
(6.3)
2,280
2,303
(1.0)
R&D expenses
418
508
(17.7)
521
(19.9)
925
1,917
(51.7)
EBDITA
649
306
112.3
579
12.1
955
871
9.7
EBDITA (%)
18.3
9.2
-
16.2
13.9
13.0
-
Depreciation
280
280
0.0
268.2
4.4
559.8
505.8
10.7
Interest
2
-
-
-
-
-
PBT
381
67
465.0
375
1.5
448
611
(26.7)
Tax
103
18
470.6
89
16.0
121
148
(18.4)
Net Profit
278
49
463.0
287
(3.0)
328
462
(29.1)
Share of profit/ (loss) in associates
9
10
8.0
19.2
-
Reported net profit before exceptional
285
59
382.1
295
(3.3)
347
462
(25.0)
Exceptional items (loss) /profit
-
-
-
-
-
Reported PAT
285
59
382.1
295
(3.3)
347
462
(25.0)
Adj. Net Profit
285
59
382.1
295
(3.3)
347
462
(25.0)
EPS (`)
17.2
3.6
17.8
20.9
27.9
Source: Company, Angel Research
Exhibit 2: Actual Vs Estimates
(` cr)
Actual
Estimates
Variation (%)
Net sales
3,546
3,700
(4.2)
Other income
11
64
(82.2)
Operating profit
649
731
(11.1)
Tax
103
191
(46.2)
Adj. Net profit
285
594
(52.0)
Source: Company, Angel Research
Revenue lower than expectations: The sales came in at `3,546cr (`3,700cr
expected) v/s. `3,586cr, a yoy de-growth of 1.1%. Global Generics at `2,862cr, posted
a yoy de-growth of 1.0%, while PSAI at `119cr, registered a yoy de-growth of 2.0%.
The Global Generics, which forms 81% of overall sales, saw dip in its key growth
market USA (`1,432cr), which posted a dip of 11.0% yoy, while Indian sales at `637cr
posted a growth of 2.0%. The USA market continued to reel under the pricing
pressures, while Indian sales were under the pressure on the back of GST.
The global generic market had sales of `2,862cr (down 1.0% yoy). Europe posted
a yoy growth of 36.0% to end the period at `242cr. Growth was driven by the
new product launches and volume growth. Apart from this, the Emerging
markets (`551cr, up 14% yoy) posted robust growth on the back of Russia
(~`320cr), which posted a growth of 20% in the reported currency, while on
constant currency terms the region posted a yoy growth of 13%. Its key growth
market USA (`1,432cr), posted a dip of 11.0% yoy, while India (`637cr), posted a
growth of 2.0%.
November 24, 2017
2
Dr. Reddy’s Laboratories | 2QFY2018 Result Update
US posted a dip, primarily on account of higher price erosion, increased
competition in the key products. This was partially offset by contribution from
new launches. During the quarter, the company launched 4 new products.
The PSAI segment posted sales of `565cr, up 22.0% yoy. The growth came in on
the back of Europe (`194cr, a yoy growth of 4%) and ROW (`232cr, a yoy growth
of 35.0%). However, growth was registered in Indian market (sales of `44cr, a yoy
growth of 51%) and USA (`96cr, a yoy growth of 23%).
As of September 30, 2017, cumulatively 103 generic filings are pending for
approvals with the USFDA (100 ANDAs and 3 NDAs under 505(b)(2) route). Of
these 100 ANDAs, 60 are Para IVs, out of which we believe 28 have ‘First to File’
status.
Exhibit 3: Trend in Global generics
3500
3000
2500
123
123
123
140
140
595
625
2000
571
637
469
215
177
207
208
1500
242
1000
1,613
1,659
1,535
1,496
1,432
500
0
2QFY2017
3QFY2017
4QFY2017
1QFY2018
2QFY2018
Others
Russia & CIS
India
Europe
North America
Source: Company, Angel Research
In the PSAI segment (16% of sales), the US grew by 23% yoy, while, ROW, Europe
and India grew by 35%, 4% & 51% yoy respectively during the quarter. Proprietary
Products & Others at `119cr posted a yoy growth of 13.0%.
November 24, 2017
3
Dr. Reddy’s Laboratories | 2QFY2018 Result Update
Exhibit 4: PSAI trend
700
600
500
198
190
194
232
400
156
58
41
40
300
44
139
210
183
200
194
254
91
100
114
126
96
53
80
0
2QFY2017
3QFY2017
4QFY2017
1QFY2018
2QFY2018
Others
India
Europe
North America
Source: Company, Angel Research
EBITDA margin expands yoy: On operating front, the EBDITA came in at 18.3%
(19.7% expected) in 2QFY2018 v/s. 16.2% in 2QFY2017. R&D expenses were at
11.8% of sales in 2QFY2018 v/s. 14.5% of sales in 2QFY2017. Gross margins during the
quarter were at 61.2% v/s. 63.5% in 2QFY2017. In spite of the same, 6.3% and
19.9% dip in the employee cost and R&D expenses respectively aided the
margin expansion.
Exhibit 5: EBITDA margin trend (%)
28.0
23.0
24.0
20.0
18.3
16.2
15.6
16.0
12.0
9.2
8.0
4.0
0.0
2QFY2017
3QFY2017
4QFY2017
1QFY2018
2QFY2018
Source: Company, Angel Research
Net profit lower than expected: Consequently, the PAT came in at `285cr
(`594cr expected) in 2QFY2018 v/s. `295cr in 2QFY2017, a yoy de-growth of 3.3%.
The net profit was lower than expected mainly on the back of the lower than
expected OPM and other income.
November 24, 2017
4
Dr. Reddy’s Laboratories | 2QFY2018 Result Update
Exhibit 6: Adjusted net profit trend
470
500
400
295
312
285
300
200
59
100
0
2QFY2017
3QFY2017
4QFY2017
1QFY2018
2QFY2018
Source: Company, Angel Research
Concall takeaways
Company guided for 2-3 new launches/quarter in USA.
Duvvada USFDA re-inspection in 4QFY2018.
DRL expects 15 ANDA launches in FY2018 (including 4-5 meaningful
launches.
Tax rate in FY2018 to stay at ~23-25% of PBT.
2nd Copaxone DMF filing will happen in two months (apart from
Srikakulam facility).
R&D expense is expected to remain at higher levels due to strong
product pipeline of complex generics, Biosimilars and differentiated
products. R&D expenses during the quarter are expected to be
~`2000cr in FY2018.
Investment arguments
Robust pipeline for US going ahead: After attaining a critical mass
(US$981mn in FY2017), DRL aims to scale up its business to the next orbit in
the US market on the back of a strong product pipeline (103 ANDAs are
pending approval, of which, 60 are Para IVs and 28 are FTFs). The
Management has guided for a robust growth in the US over the medium
term, driven by introduction of new products, some of which are also Para
IV opportunities. Owing to the import alert on the three facilities of the
company, we expect the ex-exclusivity US sales to be almost flat.
Domestic to be back in focus: DRL reported a 9.0% yoy growth in FY2017.
The management expects the company’s performance to rebound and
targets to achieve an above industry growth rate going ahead, driven by -
November 24, 2017
5
Dr. Reddy’s Laboratories | 2QFY2018 Result Update
(a) field force expansion and improvement in productivity; (b) new product
launches (including biosimilars); and (c) focus on brand building. In
4QFY2015, DRL had acquired UCB’s India portfolio and had completed the
integration process of these brands in 1QFY2016. UCB’s India business had
registered ~`150cr sales in CY2014 and has a branded portfolio of 21
products focusing on Allergy, Respiratory, Dermatology and Pediatric
space. The acquisition had been successfully integrated by 2QFY2016. Also,
in FY2017, the domestic formulation business posted a lower growth, on
account of NPPA pricing notifications and demonetization. In FY2018, the
Indian domestic sales have taken a hit on the back of GST implementation,
and hence, the year is expected to end with domestic formulation business
growing at single digit or low double digit growth. Thus, we expect sales in
India to post a CAGR of 8.9% over FY2017-19E.
Outlook & Valuation: We expect net sales to grow at a CAGR of 5.1% to
`15,548cr and adjusted EPS to post a CAGR of 18.5% over FY2017-19E to end
FY2019 at `102. The stock has been severely beaten down post the import
alert from the USFDA. However, considering the valuations, we recommend
a Reduce rating on the stock.
Exhibit 7: Key assumptions
FY2018E
FY2019E
PSAI segment growth (%)
3.5
3.8
Generics segment growth (%)
(4.3)
14.8
Operating margin (%)
17.7
20.2
Capex (` cr)
1200
1200
Source: Company, Angel Research
Exhibit 8: PE chart
5,500
4,500
3,500
2,500
1,500
500
(500)
Price
20x
25x
30x
35x
Source: Company, Angel Research
November 24, 2017
6
Dr. Reddy’s Laboratories | 2QFY2018 Result Update
Exhibit 9: Recommendation summary
Company
Reco.
CMP Tgt Price Upside
FY2019E
FY17-19E
FY2019E
(%)
CAGR in
(`)
(`)
PE
EV/Sales
EV/EBITDA
RoCE
RoE
EPS
(x)
(x)
(x)
(%)
(%)
(%)
Alembic Pharma
Buy
511
600
17.3
21.4
2.9
13.0
5.7
20.6
18.4
Aurobindo Pharma
Buy
699
823
17.8
13.6
2.5
9.9
14.2
25.3
22.7
Cadila Healthcare
Reduce
443
411
(7.2)
21.6
4.1
17.6
18.9
16.5
22.2
Cipla
Sell
619
462
(25.3)
25.5
3.2
16.2
39.3
10.9
13.1
Dr Reddy's
Reduce
2,361
2,040
(13.6)
23.2
3.1
13.3
18.5
10.3
12.4
Dishman Pharma
Under Review
301
-
-
19.3
2.7
10.1
23.3
4.5
4.4
GSK Pharma
Sell
2,496
2,000
(19.9)
53.9
6.9
39.3
19.3
25.8
23.5
Indoco Remedies
Sell
280
136
(49.0)
23.5
2.1
14.9
16.2
10.1
14.5
Ipca labs
Neutral
535
-
-
21.2
1.9
13.5
24.7
12.4
11.0
Lupin
Buy
828
1,091
31.8
16.7
2.4
9.3
(6.6)
13.7
13.7
Sanofi India*
Neutral
4,434
-
-
27.1
3.8
17.0
12.8
25.8
27.5
Sun Pharma
Buy
535
615
15.0
24.0
3.7
16.3
(17.5)
11.3
14.0
Source: Company, Angel Research; Note: *December year ending
Company Background
Established in 1984, Dr. Reddy's Laboratories is an integrated global
pharmaceutical company, through its three businesses - Pharmaceutical
Services & Active Ingredients, Global Generics and Proprietary Products.
The company’s key therapeutic focus is on gastro-intestinal, cardiovascular,
diabetology, oncology, pain management, anti-infective and paediatrics.
The company’s key markets include India, USA, Russia & CIS and Germany.
November 24, 2017
7
Dr. Reddy’s Laboratories | 2QFY2018 Result Update
Profit & loss statement (IFRS Consolidated)
Y/E March
FY2014
FY2015
FY2016
FY2017 FY2018E FY2019E
13,217
14,819
15,471
14,081
13,734
15,548
Net sales
Other operating income
141.6
91.7
87.4
106.5
106.5
106.5
Total operating income
13,359
14,911
15,558
14,187
13,840
15,654
12.5
11.6
4.3
-8.8
-2.4
13.1
% chg
Total expenditure
10,096
11,535
11,669
11,811
11,308
12,411
4,977
5,531
5,315
5,219
5,402
5,725
Cost of revenues
SG&A expenses
3,878
4,259
4,570
4,637
3,983
4,509
R&D expenses
1,240
1,745
1,783
1,955
1,923
2,177
EBITDA
3,121
3,284
3,802
2,270
2,426
3,137
% chg
16.6
5.2
15.8
-40.3
6.9
29.3
23.6
22.2
24.6
16.1
17.7
20.2
(% of Net Sales)
Depreciation & amortisation
659.8
747.4
927.4
1,026.6
1,052.8
1,115.5
EBIT
2,462
2,537
2,875
1,243
1,373
2,021
% chg
27.4
3.1
13.3
-56.7
10.5
47.2
(% of Net Sales)
18.6
17.1
18.6
8.8
10.0
13.0
-
-
-
-
-
-
Interest & other charges
Other Income
40.0
168.2
(270.8)
80.6
80.6
80.6
(% of PBT)
1.5
6.0
(10.0)
5.5
5.1
3.6
Share in profit of associates
17.4
19.5
22.9
34.9
34.9
34.9
Recurring PBT
2,661
2,816
2,714
1,465
1,595
2,243
19.0
5.9
-3.6
-46.0
8.9
40.6
% chg
Extraordinary expense/(Inc.)
-
-
508.5
-
-
-
PBT (reported)
2,660.6
2,816.3
2,714.0
1,465.3
1,595.4
2,243.2
Tax
509.4
598.4
712.7
261.4
436.9
552.1
(% of PBT)
19.1
21.2
26.3
17.8
27.4
24.6
2,151.2
2,217.9
2,001.3
1,203.9
1,158.5
1,691.1
PAT (reported)
Add: Share of earnings of asso.
-
-
-
-
-
-
Less: Minority interest (MI)
-
-
-
-
-
-
Exceptional items
-
-
-
-
-
-
PAT after MI (reported)
2,151.2
2,217.9
2,001.3
1,203.9
1,158.5
1,691.1
2,151.2
2,217.9
2,357.0
1,203.9
1,158.5
1,691.1
ADJ. PAT
% chg
22.9
3.1
6.3
(48.9)
(3.8)
46.0
(% of Net Sales)
16.3
15.0
12.9
8.5
8.4
10.9
Basic EPS (`)
126.7
130.2
138.2
72.6
69.9
102.0
Fully Diluted EPS (`)
126.7
130.2
138.2
72.6
69.9
102.0
22.9
2.7
6.1
(47.4)
(3.8)
46.0
% chg
November 24, 2017
8
Dr. Reddy’s Laboratories | 2QFY2018 Result Update
Balance sheet (IFRS Consolidated)
Y/E March (` cr)
FY2014
FY2015
FY2016
FY2017
FY2018E FY2019E
SOURCES OF FUNDS
84.9
85.2
85.3
82.9
82.9
82.9
Equity share capital
Preference Capital
-
-
-
-
-
-
Reserves & surplus
8,995
11,045
12,748
12,179
12,938
14,230
9,080
11,130
12,834
12,262
13,021
14,313
Shareholders’ funds
Minority Interest
4,474.2
3,954.3
3,661.9
5,335.1
6,000.0
6,800.0
Total loans
Deferred tax liability
(192.9)
(401.3)
(423.0)
(516.4)
(516.4)
(516.4)
Total liabilities
13,361
14,683
16,073
17,081
18,505
20,597
APPLICATION OF FUNDS
Net fixed assets
3,945
4,314
5,396
5,142
6,342
7,542
1,470
1,643
1,969
4,618
4,618
4,618
Goodwill /other intangibles
Capital Work-in-Progress
495.2
495.2
495.2
495.2
495.2
495.2
Investments
2,589
3,811
3,833
2,110
2,110
2,110
7,866
8,558
8,465
8,257
8,216
9,605
Current Assets
Cash
845
539
492
387
791
1,206
793.0
889.1
928.2
844.9
824.0
932.9
Loans & Advances
Other
6,228
7,129
7,045
7,025
6,600
7,465
Current liabilities
3,006
4,214
4,193
4,057
3,792
4,289
4,860
4,344
4,273
4,199
4,423
5,315
Net Current Assets
Other Assets
76
106
517
517
517
Total Assets
13,361
14,683
16,073
17,081
18,505
20,597
November 24, 2017
9
Dr. Reddy’s Laboratories | 2QFY2018 Result Update
Cash flow statement (IFRS Consolidated)
Y/E March (` cr)
FY2014
FY2015
FY2016
FY2017
FY2018E FY2019E
Profit before tax
2,661
2,816
2,714
1,465
1,595
2,243
660
747
927
1,027
1,053
1,116
Depreciation
(Inc)/Dec in Working Capital
(906)
211
24
(32)
181
(477)
Less: Other income
40
168
(271)
81
81
81
509
598
713
261
437
552
Direct taxes paid
Cash Flow from Operations
1,865
3,008
3,224
2,118
2,311
2,249
(164)
(369)
(1,082)
254
(1,200)
(1,200)
(Inc.)/Dec.in Fixed Assets
(Inc.)/Dec. in Investments
824
1,222
22
(1,723)
-
-
Other income
40
168
(271)
81
81
81
Cash Flow from Investing
701
1,021
(1,331)
(1,389)
(1,119)
(1,119)
Issue of Equity
-
0
0
(2)
-
-
798
(520)
(292)
1,673
665
800
Inc./(Dec.) in loans
Dividend Paid (Incl. Tax)
358
399
399
399
399
399
Others
(3,390)
(4,214)
(2,047)
(2,904)
(1,851)
(1,914)
Cash Flow from Financing
(2,234)
(4,335)
(1,940)
(834)
(787)
(715)
Inc./(Dec.) in Cash
331
(306)
(47)
(106)
405
415
514
845
539
492
387
791
Opening Cash balances
Closing Cash balances
845
539
492
387
791
1,206
November 24, 2017
10
Dr. Reddy’s Laboratories | 2QFY2018 Result Update
Key ratios
Y/E March
FY2014
FY2015
FY2016
FY2017
FY2018E FY2019E
Valuation Ratio (x)
18.6
18.1
17.1
32.5
33.8
23.2
P/E (on FDEPS)
P/CEPS
14.3
13.6
13.8
17.6
17.7
13.9
P/BV
4.4
3.6
3.1
3.2
3.0
2.7
0.6
0.6
0.6
0.6
0.6
0.6
Dividend yield (%)
EV/Sales
3.1
2.7
2.6
3.0
3.1
2.7
13.2
12.1
10.4
18.5
17.4
13.6
EV/EBITDA
EV / Total Assets
3.1
2.7
2.5
2.5
2.3
2.1
Per Share Data (`)
EPS (Basic)
126.7
130.2
138.2
72.6
69.9
102.0
EPS (fully diluted)
126.7
130.2
138.2
72.6
69.9
102.0
165.5
174.0
171.7
134.5
133.4
169.3
Cash EPS
DPS
15.0
15.0
15.0
15.0
15.0
15.0
Book Value
534.7
653.3
752.3
739.6
785.4
863.3
Dupont Analysis
EBIT margin
18.6
17.1
18.6
8.8
10.0
13.0
80.9
78.8
73.7
82.2
72.6
75.4
Tax retention ratio
Asset turnover (x)
1.2
1.1
1.0
0.9
0.8
0.8
ROIC (Post-tax)
17.4
15.1
14.3
6.4
5.8
8.3
Cost of Debt (Post Tax)
0.0
0.0
0.0
0.0
0.0
0.0
Leverage (x)
0.4
0.4
0.3
0.3
0.4
0.4
24.7
20.4
18.3
8.5
8.2
11.5
Operating ROE
Returns (%)
ROCE (Pre-tax)
20.2
18.1
18.7
7.5
7.7
10.3
Angel ROIC (Pre-tax)
25.6
22.5
22.9
10.1
11.4
15.0
ROE
26.3
21.9
19.7
9.6
9.2
12.4
Turnover ratios (x)
Asset Turnover (Gross Block)
3.5
3.6
3.2
2.7
2.4
2.3
Inventory / Sales (days)
62
61
60
62
63
65
Receivables (days)
89
90
96
89
91
94
Payables (days)
40
43
59
40
39
40
97
96
89
98
98
90
WC cycle (ex-cash) (days)
Solvency ratios (x)
Net debt to equity
0.4
0.3
0.2
0.4
0.4
0.4
Net debt to EBITDA
1.2
1.0
0.8
2.2
2.1
1.8
Interest Coverage (EBIT / Int.)
-
-
-
-
-
1.0
November 24, 2017
11
Dr. Reddy’s Laboratories | 2QFY2018 Result Update
Research Team Tel: 022 - 39357800
E-mail: [email protected]
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Disclosure of Interest Statement
Dr. Reddy’s Laboratories
1. Financial interest of research analyst or Angel or his Associate or his relative
No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives
No
3. Served as an officer, director or employee of the company covered under Research
No
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Ratings (Based on expected returns
Buy (> 15%)
Accumulate (5% to 15%)
Neutral (-5 to 5%)
over 12 months investment period):
Reduce (-5% to -15%)
Sell (< -15)
November 24, 2017
12