Dr Reddy's shares jump despite 36% Q2 profit fall: Buy, sell or hold? What Nomura, Citi and others say
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Dr Reddy's shares rose on Monday despite a 36% profit fall to Rs 925 crore for Q2FY27.
- ✓Brokerages showed mixed views, as Nomura kept a 'Buy' rating while Jefferies upgraded the stock to 'Hold'.
- ✓Investors focused on margin recovery, even though lower sales in North America impacted overall revenue figures.
Story at a Glance
- Category
- MARKET
- Reported By
- MoneyControl
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
Shares of Dr Reddy's Laboratories rose in morning trade on Monday as brokerages highlighted a sharp margin recovery and better-than-expected profitability in the September quarter. Nomura retained its 'Buy' rating but cut its target price, while Citi raised its target and Jefferies upgraded the stock to 'Hold' from 'Underperform'. Goldman Sachs maintained 'Sell', and Kotak Neo retained 'Reduce'. The stock was trading at Rs 1,274.70 on the NSE at 10:33 am, up 3.68%. The drugmaker reported a 36% year-on-year fall in consolidated net profit to Rs 925 crore for Q2FY27, while revenue declined 0.5% to Rs 8,670.8 crore, primarily due to lower lenalidomide sales in North America.
Sequentially, net profit rose 109% and revenue increased 7.4%. EBITDA margin stood at 20.6%. Nomura retains 'Buy', cuts target to Rs 1,730 Nomura said EBITDA and profit after tax exceeded its estimates by 14% and 5%, respectively, while revenue marginally missed expectations.
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