Dr Reddy’s Laboratories shares continued to decline for the second straight session, it fell around 14 per cent to Rs 4667 a share, day’s low level from Rs 5409 apiece Monday’s close. The company on Tuesday reported lower-than-expected earnings in the first quarter of the financial year 2021-22.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

During today’s session, the stock has declined by around 4 per cent to Rs 4667 per share on the BSE intraday, while it cracked over 10 per cent yesterday, becoming the top laggards at market close.

See Zee Business Live TV Streaming Below:

At around 01:40 pm, the stock was trading 2 per cent down to Rs 4745 per share on the BSE, as compared to a 0.33 per cent decline in the S&P BSE Sensex.

The pharma major Dr Reddy’s on Tuesday reported a 1 per cent decline in the consolidated net profit to Rs 571 crore in the first quarter of the financial year 2021-2022, versus Rs 579 crore in Q1FY21. While its revenue grew by 11 per cent to Rs 4919.4 crore from Rs 4417.5 crore year-on-year basis.

Meanwhile, the company received a subpoena from the US market regulator SEC (Securities and Exchange Commission) for the production of documents with respect to Commonwealth of Independent States (CIS) geographies, Dr Reddy’s said in an exchange filing on Tuesday.

The majority of the brokerages are divided on Dr Reddy’s prospects, maintaining either a Neutral or an Underperform ratings on this stock. In this regard, Credit Suisse downgrades its stance to Neutral from Outperform on Dr Reddy’s shares after Q1 results. Similarly, Goldman Sachs also maintains a Neutral stance, while reducing the FY22-24 EPS estimates for Dr Reddy’s by 6-13 per cent.

The drugmaker’s consolidated operating margin in the quarter sank 560 basis points year-on-year to 20.7 per cent from 26.3 per cent as expenses rose considerably.