Dr Reddy's Laboratories Ltd ADR
RDY: XNYS (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| $18.00 | Xyspt | Prgwnndl |
Dr. Reddy’s Earnings: New Launches, Acquisitions, Healthy Environment Make for Solid Performance
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No-moat Dr. Reddy’s reported first-quarter earnings that were significantly higher than we had expected. Total sales grew 29.2% year over year, the largest quarterly growth the company has posted in the last three years. Strong demand from recent and new launches as well as a weaker price erosion in Reddy’s base business fueled growth. After raising our near-term and medium-term top-line and margin outlook—as well as baking in time value of money impact—we raise our fair value estimate to $54 from $48.