1:5 Stock Split Soon: Buy Pharma Stock For TP Rs 8K, $620 Mn Investment In Arm Completed: Analyst

Large cap pharmaceuticals sector company Dr Reddy's Laboratories Ltd shares gained 2.24% in last 1-week and 16% so far this year. Last trading price of Dr Reddy's Laboratories shares on BSE is Rs 6749.35 per share. The company on October 4, 2024 fixed October 28, 2024 as the record date for stock split in the proportion of 1:5. Dr Reddy's Laboratories has a market capitalisation of Rs 1,12,625.82 crore. The company on September 27 declared that it has completed a $620 million investment in Switzerland based subsidiary namely Dr. Reddy's Laboratories SA.

The investment received approval by the Board of Directors of the company and it was made by buying preference shares in the subsidiary, as per the BSE filing. Check details below:

What Is Stock Split And How It Benefits? When a firm declares stock split/sub-division, it leads to increased number of shares of that company with the market cap remaining similar. The current shares split with the underlying value remaining same. When the number of shares rise, the price per share falls. The companies opt for sub-division to make the share affordable for investors who may find it tough to buy the shares of that company due to high prices.

Dr Reddy's Laboratories To Soon Trade Ex-Split: As per the exchange filing of Dr Reddy's Laboratories dated October 4, 2024, "this is to inform you that the Company has fixed Monday, October 28, 2024 as the "Record Date" for determining entitlement of Equity Shareholders for the purpose of sub-division/ split of each equity share of Rs. 5/- (Rupees five only) each, fully paid-up into 5 (five) equity shares of Re. 1/- (Rupee one only) each, fully paid-up, as approved by the Members of the Company through Postal Ballot on September 12, 2024, and intimated to the Stock Exchanges vide our letter dated September 12, 2024."

Dr Reddy's Laboratories Shares Performance: The 52-week high price of Dr Reddy's Laboratories shares on BSE stood at Rs 7101.00 per share (as on 21/08/2024) and 52-week low price is Rs 5212.10 per share (as on 30/10/2023), respectively. Dr Reddy's Laboratories shares gained 13% in last 6-months, and soared 55% in last 2-years. In last 5-years, Dr Reddy's Laboratories shares 148%.

Buy Dr Reddy's Laboratories Shares: Brokerage firm Investec recommended buy call to Dr Reddy's Laboratories shares with target price of Rs 8,000. The analyst said, "committed to China market despite setbacks but unable to bid on tenders for 18 months. Strong pipeline in areas with limited competition, including long-acting injectables and GLP-1s. $2-2.5 billion available for strategic M&A but no rush to acquire."

Disclaimer: The stock has been picked from the brokerage report of Investec. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.