Preview: Dr Reddy's opens Q2 earnings for Indian big pharma; investors brace for muted quarter

Dr. Reddy's Laboratories

Yesterday 06:09

** Dr Reddy's Laboratories REDY.NS is set for a muted Q2, with brokerages flagging a steep fall in gRevlimid sales as the key earnings drag
** REDY to post Q2 results later on Friday
** Kotak expects pharma sector EBITDA to decline 6% Y/Y, hurt largely by lower gRevlimid contributions
** Nuvama counts Dr Reddy's among likely underperformers this quarter as tailwinds from generic medicine business in US fadem
** Antique expects margin pressure across the sector, citing weaker product mix and higher cost pressures
** Brokerages say healthy India formulations and steady ex-gRevlimid US sales partly cushion the impact, but are unlikely to offset the high-margin product slowdown
** Avg rating of 36 analysts on stock is "hold"; median PT is 1,243 rupees - LSEG compiled data
** YTD, stock down 3.3% vs pharma index's .NIPHARM 11.3% climb


 (Reporting by Kashish Tandon in Bengaluru)
 ((Kashish.tandon@thomsonreuters.com))