In today’s briefing:
- Ajanta Pharma: Forensic Analysis
- Dr. Reddy’s Laboratories (DRRD IN): India Business Is the Only Bright Spot Amid Many Headwinds
Ajanta Pharma: Forensic Analysis
- Ajanta Pharma (AJP IN) together with its subsidiaries, develops, manufactures, and markets finished dosages and markets it both domestic and internationally.
- Although the company has been profitable, it does exhibit several concerns on the balance sheet side and few on the governance end.
- Major setbacks include elongated cash conversion cycle, declining returns and efficiency ratios, doubts on effectiveness of R&D, and capital allocation woes.
Dr. Reddy’s Laboratories (DRRD IN): India Business Is the Only Bright Spot Amid Many Headwinds
- Dr. Reddy’s Laboratories (DRRD IN) is outperforming the domestic pharma industry and aims to expand its market share. Currently, India business contributes 19% of revenue.
- The company’s largest revenue segment, the U.S. generic business continues to see pricing pressure. It plans to launch new products, including complex generics to combat the impact of price erosion.
- Dr. Reddy also has around 13% revenue exposure to Russia and other CIS countries. Sharp depreciation of Russian currency will negatively impact revenue from the region.
Before it’s here, it’s on Smartkarma
