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Dr Reddy's Lab extends fall on weak Q4 earnings

Analyst at Angel Broking maintains buy recommendation on the stock with a price target of Rs 3,634.

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SI Reporter Mumbai
Last Updated : May 14 2014 | 12:33 PM IST
Dr Reddy’s Laboratories has dipped nearly 3% to Rs 2,538, extending its previous day’s 4% fall, after the pharma major reported a 16% year on year (yoy) decline in consolidated net profit at Rs 482 crore for the quarter ended March 31, 2014 (Q4), due to lower sales growth, higher SG&A (selling, general and administrative) expenses. The company had registered a profit of Rs 571 crore in the same quarter year ago.

Net sales of the company in Q4, 2013-14 rose to Rs 3,481 crore from Rs 3,340 crore in the year-ago period.

The company said the SG&A expenses rose 18% yoy to Rs 1,031 crore for the fourth quarter of last fiscal, from Rs 872 crore in the year-ago period.

However, analyst at Angel Broking maintains buy recommendation on the stock with a price target of Rs 3,634.

The stock opened at Rs 2,600 and touched a low of Rs 2,525 on the NSE. A combined 595,000 shares changed hands on the counter so far on the NSE and BSE.
 

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First Published: May 14 2014 | 12:28 PM IST

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