Dr Reddy's Labs shares up 3% today; target prices by stock analysts post Q1 results
The pharma stock rose 3.2 per cent to Rs 1,287.90 on BSE over its previous close of Rs 1,247.55.
- Jul 24, 2025,
- Updated Jul 24, 2025 12:39 PM IST
Shares of Dr Reddy’s Laboratories Ltd (DRL) climbed 3 per cent in Thursday’s trade even as a couple of brokerages offered mixed views on the stock following the pharmaceutical major's June quarter results.
The pharma stock rose 3.2 per cent to Rs 1,287.90 on BSE over its previous close of Rs 1,247.55. With this, the scrip is off 25 per cent from the 52-week low of Rs 1,025.90.
DRL posted a 2 per cent YoY increase in PAT to Rs 1,417.8 crore for Q1 FY26, compared with Rs 1,392 crore in the year-ago period. However, brokerages remain divided on the stock's prospects due to margin pressures and global cues.
HDFC Institutional Equities said, "Ebitda (+2 per cent YoY) was muted and 7/8 per cent below our/consensus estimates as sales growth of +11 per cent YoY was offset by a sharp decline in the gross margin (down 440 bps YoY) due to price erosion in the US business."
This brokerage retained its ‘Reduce’ rating with a revised target price of Rs 1,240, citing concerns over gRevlimid’s contribution tapering from Q3 FY26 and only moderate growth in India.
ICICI Securities said, “DRL’s Q1 FY26 revenue and Ebitda came in below our expectations due to lower offtake and pricing pressure in gRevlimid in the US.”
This brokerage noted that DRL clocked a gross margin contraction of 350 bps YoY to 56.9 per cent and an Ebitda margin drop of 256 bps YoY to 25.2 per cent. While ICICI Securities raised its target price to Rs 1,200 from Rs 1,100, it maintained a ‘HOLD’ rating, citing near-term pain and loss of exclusivity in gRevlimid as key risks
Meanwhile, JM Financial remained optimistic. “With semaglutide and liraglutide launches in the near term, DRRD remains best placed among generic players to benefit from the upcoming generic GLP-1 wave,” it said.
Despite a miss in Q1 performance due to higher-than-expected price erosion in gRevlimid, JM Financial retained its ‘BUY’ rating with a target price of Rs 1,521, said that the "larger story remains intact."
Shares of Dr Reddy’s Laboratories Ltd (DRL) climbed 3 per cent in Thursday’s trade even as a couple of brokerages offered mixed views on the stock following the pharmaceutical major's June quarter results.
The pharma stock rose 3.2 per cent to Rs 1,287.90 on BSE over its previous close of Rs 1,247.55. With this, the scrip is off 25 per cent from the 52-week low of Rs 1,025.90.
DRL posted a 2 per cent YoY increase in PAT to Rs 1,417.8 crore for Q1 FY26, compared with Rs 1,392 crore in the year-ago period. However, brokerages remain divided on the stock's prospects due to margin pressures and global cues.
HDFC Institutional Equities said, "Ebitda (+2 per cent YoY) was muted and 7/8 per cent below our/consensus estimates as sales growth of +11 per cent YoY was offset by a sharp decline in the gross margin (down 440 bps YoY) due to price erosion in the US business."
This brokerage retained its ‘Reduce’ rating with a revised target price of Rs 1,240, citing concerns over gRevlimid’s contribution tapering from Q3 FY26 and only moderate growth in India.
ICICI Securities said, “DRL’s Q1 FY26 revenue and Ebitda came in below our expectations due to lower offtake and pricing pressure in gRevlimid in the US.”
This brokerage noted that DRL clocked a gross margin contraction of 350 bps YoY to 56.9 per cent and an Ebitda margin drop of 256 bps YoY to 25.2 per cent. While ICICI Securities raised its target price to Rs 1,200 from Rs 1,100, it maintained a ‘HOLD’ rating, citing near-term pain and loss of exclusivity in gRevlimid as key risks
Meanwhile, JM Financial remained optimistic. “With semaglutide and liraglutide launches in the near term, DRRD remains best placed among generic players to benefit from the upcoming generic GLP-1 wave,” it said.
Despite a miss in Q1 performance due to higher-than-expected price erosion in gRevlimid, JM Financial retained its ‘BUY’ rating with a target price of Rs 1,521, said that the "larger story remains intact."