FINANCE & STOCK ADVICE: My View on Dr Reddy

About The Company

The company is engaged in medicine business . Dr Reddy's , Ranbaxy and Cipla are some of the market leaders in this segment. The stock has been fancied among the investor for long time in the capital market.

About The Results

The company has posted result for the last quarter with a PAT at Rs.192 crore. The earnings would have been much higher but for the lower earnings from Europe fell due to declining prices, affecting the margins. But on the other hand, its sales in USA more than quadrupled due to the launch of its new generic drug Sumatriptan, used for treating acute migrane.

Overall revenues were up 49% on a YoY at Rs. 1840 crore. EBITDA was up 58%. Net profit was at Rs.192.0 crore as against a net loss of Rs.121.30 crore it posted in Q3FY08. What is commendable is that it posted a net forex loss of Rs 49.3 crore as against a net gain of Rs. 8.7 crore in Q3FY08. The forex loss was mainly on account of fluctuations of Russian Rouble.

Germany continues to remain a problem region. The withdrawal of Olanzapine stocks due to upholding of patent validity by a German court and price decline pulled down the margins. Its AOK tender too is entangled in legal problems and the company has said that a better profitability picture from Germany would emerge only in Q4.

Dr Reddy’s launched 10 new products during the quarter and it plans to launch two biologics products during next fiscal in the domestic market. For FY10, the company has projected a flat growth as a lot of its growth depends on the outcome of its tenders in Germany.

About The Stock

The stock has been evergreen performer but some pain is yet left and need to be over before fresh buying in this counter.

Disclaimer : I do not have any personal holding in this company.

MULTI BAGGER STOCK GROUP

Some of my group's multi bagger picks during the rally were NMDC , MMTC , STC , Larsen ,Jindal Steel & Power , Unitech , BF Utilities , Jai Corporation , Walchand Nagar Industries, RNRL , Reliance Infra (Reliance Energy) etc.

I had been long associated with a corporate engaged in financial services , where with the assistance of specialized tools along with my special analysis as per some historical accepted theories of stock market like W. D. GANN's Theory , Elliot Wave Theory and others are used with reliable insider information of so called " operators" who play a major role to make a stock ,a Multi Bagger ,I do make my gem picks in this market.

I had been running my group , where the associated people get the reliable and most beneficial to get the unexpected return as seen in the above mentioned tips. Say for example the stock called MMTC had jumped from 2000 level to 56000 per share of historical price where the capital appreciated by 28 times in very short period with 2700% return on capital employed. Likewise in RNRL we started accumulating at RS 25 level from where we saw it moving at 250 level giving 10 times with 900% return.

These sort of return is helpful as ,

1. Handsome gain will make a jack to our capital.

2. Limited stocks trade , as daily trade could be avoided , which is more risky.

3. Long term capital gain , so no tax liability.

4. Whole income in white, which could be further deposited into fixed deposit to get assured monthly income later.

5. Strong income tax file without paying any taxes.

Our role here could be summarized as :

1. Giving tips to all registered member at proper time , when the stock is just about to take off, neither too early not too late.

2. Make sure investor do not gt stuck into it.

3. Recommend to exit when the operator is about to leave it.which is the most important work or else the whole accumulated and deemed profit will be washed away along with part of investment and will remain stuck for long - long period.


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My View on Dr Reddy