1:2 Split, 1:1 Bonus: BUY Largecap Pharma Stock For Rs 6,500 Target; Prabhudas Lilladher

Brokerage Prabhudas Lilladher has recommended BUY on largecap pharma stock, Dr Reddy's Lab after it consolidation. Right after brokerage's pick of Dr Reddy's, the stock surged to near Rs 6,060 levels. The upside target is of Rs 6,500 ahead. After significant consolidation, Dr Reddy's Lab has turned losses into gains in 2024 so far. YTD, the stock gained by nearly 4%.

On BSE, the stock stood at Rs 6059.05 apiece, up by 2.75% on June 7, with market cap of Rs 1,01,074.99 crore. The stock's 52-week high and low is at Rs 6,505.50 apiece and Rs 4,638 apiece respectively.

Vaishali Parekh, Vice President - Technical Research, at Prabhudas Lilladher said, "The stock has corrected well and has consolidated near 5.700 levels to maintain a good base taking support and currently we anticipate a bounce back with strength and potential to rise further in the company days."

Parekh's note said, "The RSI has shown signs of positive bias and with good volume participation witnessed, we suggest to buy and accumulate this stock for an upside target of Rs 6,500 levels, keeping the stop loss at Rs 5,650."

Among corporate actions, the stock has delivered up to 25 dividends since September 2000, as per Trendlyne data. In 2023, the company paid its highest dividend of Rs 40 per share, followed by the payout of Rs 30 per share in 2022, Rs 25 and Rs 20 per share in 2021 and 2000.

Also, the stock has turned ex-split once in October 2001. The share split was in the ratio of 1:2, with a face value of Rs 10 each trimming to Rs 5 each. Further, the stock also issued bonus shares in a ratio of 1:1 in August 2006.

Dr Reddy's Laboratories is a global
pharmaceutical company headquartered in Hyderabad, India. Established in 1984, the company is committed to providing access to affordable and innovative medicines. Driven by its purpose of 'Good Health Can't-Wait', the company offers a portfolio of products and services including APIs, generics, branded generics, biosimilars and OTC.

The company's major therapeutic areas of focus are gastrointestinal, cardiovascular, diabetology, oncology, pain management and dermatology, while its major r markets include - USA, India, Russia & CIS countries, China, Brazil, and Europe.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.