Buy Dr. Reddy's Laboratories, target price Rs 5324: ICICI Direct

ICICI Direct has given a buy rating to Dr. Reddy's Labs with a target price of Rs 5324. The share price moved up by 1.72 per cent from its previous close of Rs 5219.35. The stock’s last traded price is Rs 5308.95.

Dr. Reddy's Laboratories Ltd., incorporated in the year 1984, is a Large Cap company (having a market cap of Rs 87326.93 Crore) operating in Pharmaceuticals sector.

Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 4417.50 Crore, down 0.32 % from last quarter Sales of Rs 4431.80 Crore and up 14.93 % from last year same quarter Sales of Rs 3843.60 Crore. The Company reported net profit after tax of Rs 586.90 Crore in latest quarter.

Investment Rationale
Price consolidating above the bullish gap area and the 38.2% retracement of the previous upmove (4336-5512)

Promoter/FII Holdings
Promoters held 26.8 per cent stake in the company as of June 30, 2020, while FIIs held 26.7 per cent, DIIs 29.3 and public and others 14.6 per cent