Dr Reddy's Laboratories

Cyclical: bought at the gRevlimid cliff

Last close: ₹1,251.90; 29 Sept 2026 · reference
1D · 1M: +2.5% · +6.3%; price-only
Weight: 0.7%; 31 Jul 2026 · Aug rank —
Thesis review: 8 Sep 2026; Why We Own, p45

Coverage owner: Research (per book); latest results Q Jun-26Screener ↗Tijori ↗NSE ↗

Broker research · 1 report

Sell-side views, extracted from the PDFs on file

Antique Stock Broking LimitedHOLDdailymulti-company

Antique's Morning Presentation - From The Research Desk (Indian Banking Sector; NBFC 1QFY27 Review; Cement; FMCG)

19 Aug 2026 · Manjith Nair, Pashmi Chheda, Raju Barnawal · 86 pp · open PDF ↗

Target: ₹1,160
At report: ₹1,179
Vs our close: −7.3%

Dr Reddy's Laboratories appears only in the Valuation Guide appendix (no dedicated commentary), rated HOLD with TP implying slight downside (-2%).

Key points

Valuation Guide: TP Rs 1,160 (-2%), Mcap $10.3bn, FY27E/FY28E/FY29E EPS Rs 39.8/53.6/71.5, P/E 29.6x/22.0x/16.5x
Listed among ADR/GDR gainers on the report date, up 0.3% to $12.2

Extraction note: This is a very long (86-page) multi-sector daily; only sections/data relevant to tracked portfolio companies were extracted in depth. The daily's Banking sector report (pages 3-60) also covers non-portfolio banks in similar depth: Kotak Mahindra Bank, IndusInd Bank, Federal Bank,…

Figures are transcribed from each broker's PDF as printed (units as the broker states them) and are the broker's estimates, not Buoyant's. "Vs our close" recomputes the target against the latest reference close (29 Sept 2026).

SWOT

Strengths · Weaknesses · Opportunities · Threats

Draft

Strengths

Trough-earnings cyclical: FY26 PAT fell to Rs 4,158 cr from Rs 5,725 cr and Q1FY27 EBITDA margin hit 12.5%; management targets ~20% EBITDA margin 'in coming quarters' and higher once semaglutide resumes.
Semaglutide relaunch: commercial supply targeted Nov-2026 with 6-7 mn pens to be supplied Nov-Mar across Canada, India and partner markets (management-assessed 80-90% probability); first-to-market position in Canada.
Ex-US engines growing double digits: India Rs 1,718 cr (+17%), Emerging Markets Rs 1,833 cr (+31%) with Russia +12% and Europe/NRT Rs 1,444 cr (+13%).
Balance sheet: net cash Rs 3,058 cr, capex trimmed to Rs 1,800 cr, dividend yield 0.7%; DIIs now 31.8% holders.

Weaknesses

vs Sun Pharma: Sun is priced for its specialty franchise (innovative medicines 21.9% of sales) while DRL trades at ~21x depressed FY28E earnings; DRL is the higher-beta recovery play on semaglutide and margin normalisation, held small (0.7%) as a cyclical.
vs Cipla: Cipla faces the same gRevlimid cliff (brokers modelled ~31% PAT decline in Q1FY27) without DRL's Canada semaglutide first-mover position, Russia/NRT diversification or Rs 3,058 cr net cash.

Opportunities

Semaglutide API re-test in Sep-2026 and commercial supply resumption targeted Nov-2026 (6-7 mn pens by Mar-2027).
Abatacept biosimilar US approval decision expected by Dec-2026 (Q4FY27).
Q2FY27 results (late Oct/Nov-2026): evidence of EBITDA margin recovering toward 20%.

Threats

Semaglutide API quality failure: Rs 240 cr provision already; a second failure or slower re-test (Sep-2026) would push the Nov-2026 relaunch and FY27 EPS cuts already flagged by Emkay (-5%).
USFDA: 7-observation Form 483 at the Bachupally biologics plant (Jun-2026) could delay abatacept approval (Dec-2026 target).
Consensus still expects downgrades: Axis SELL (TP 1,070), Goldman SELL (1,050); US base ex-Revlimid has settled near bear-case levels per Emkay.

Compiled from the approved one-pager (Why We Own What We Own, 8 Sep 2026): why-we-own → strengths, catalysts → opportunities, key risks → threats, peer caveats → weaknesses. Editorial mapping pending review. · author: compiled from the approved one-pager

Research reports · upload with a check step

0 approved · 0 pending · 0 rejected

Only approved reports are readable from the company page; the reviewer must differ from the uploader. Files are hashed (duplicates skipped) and held in the private store.

Internal evidence

Buoyant sources for this name

August 2026 top-30 disclosure — rank n/a, HealthCare, —. Buoyant AIF I Top 30 Holdings - Aug 2026.pdf
One-pager, "Why We Own What We Own" — p45, 8 Sep 2026. Buoyant_Why_We_Own_What_We_Own_Sep2026.pdf (portfolio as of 31 July 2026)
Sales playbook, Aug 2026 — holdings matrix (PMS/AIF I/AIF II, $31 Jul 2026). Buoyant_Capital_Sales_Playbook_Aug_2026_Full_Holdings.pdf

Original PDFs are in the supplied package on disk; private object storage is not configured, so source pages are referenced, not served.

Company filings

Investor documents (Tijori knowledge base)

annual reports

earnings releases

investor presentations

conference calls

Links open the issuer's or exchange's document; fetched only through the user's browser, never by the platform.

Ownership

Shareholding · Jun'26

Promoter	26.64%
Indian Promoters	26.64%
GVP Family Trust	11.51%
VSD Family Trust	9.06%
KALLAM SATISH REDDY HUF	3.31%
GUNUPATI VENKATESWARA PRASAD HUF	1.52%
SATISH REDDY KALLAM	1.21%
ANURADHA GUNUPATI	0.01%
Cancelled Plans LLP	0.00%
SANJ DESIGNS PRIVATE LIMITED	0.00%
SNSG Trading Private Limited	0.00%
Mallika Estates Private Limited	0.00%
Public Shareholding	61.95%
Institutions	52.40%