Buy Dr. Reddy's Labs, target price Rs 5480: Motilal Oswal

Motilal Oswal has buy call on Dr. Reddy's Laboratories with a target price of Rs 5480. The current market price of Dr. Reddy's Laboratories Ltd. is Rs 5220.

Dr. Reddy's Laboratories Ltd., incorporated in the year 1984, is a Large Cap company (having a market cap of Rs 86938.05 Crore) operating in Pharmaceuticals sector.

Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 4896.70 Crore, up 10.85 % from last quarter Sales of Rs 4417.50 Crore and up 2.00 % from last year same quarter Sales of Rs 4800.80 Crore Company reported net profit after tax of Rs 764.50 Crore in latest quarter.

Investment Rationale
Price - volumes consolidation breakout with positive set up in Nifty Pharma index

Promoter/FII Holdings
Promoters held 26.7 per cent stake in the company as of Sept 30, 2020, while FIIs held 29.8 per cent, DIIs 13.9 per cent and public and other 29.5 per cent.