Shares of one of India’s largest global pharmaceutical manufacturers gained over 2.6% in early trade on Monday after the company announced an agreement to buy a stake in O2 Renewable Energy IX Private Limited.
Dr Reddy’s Laboratories Ltd shares were trading at Rs 5,215.85 on the National Stock Exchange at 2:11 p.m., up 2.43 percent.
As per Exchange filings,Dr. Reddy has agreed to purchase a share in the renewable energy business O2 Renewable Energy IX Private Limited through a special purpose vehicle (SPV) with TEQ Green Power XI Pvt Ltd and O2 Power SG Pte Ltd.
This investment is focused on securing consumption and supply of renewable energy through solar and wind power facilities connected to the captive (Inter-State Transmission System) ISTS.In the ratio of 26:74, Dr Reddy and TEQ Green Power XI and/or its subsidiary will invest in SPV.
Dr. Reddy’s Laboratories Ltd is a leading India-based pharmaceutical company that offers a portfolio of Active Pharmaceutical Ingredients, generics, biosimilars, and differentiated formulations to both domestic and international clients.
Year to date, the stock has gained 23.25 percent, rising from Rs 4,235.05 to the present price. The stock has risen 20.08 percent in the last six years, from Rs 4,351.75 to the present price.
Revenue increased by 14 percent year on year to Rs 24,669 crore in FY 22-23 from previous year. Net profit climbed by 111 percent within the same time period to Rs 4,470 crore.
In FY 22-23, the company’s profitability metrics increased, with return on equity at 19.35 percent and return on capital invested at 25.95 percent. At the same time, margins improved, with net profit margin at 18.12 percent and operating margin at 24.94 percent.
As per shareholding pattern for the quarter ending June 2023, promoters own 26.7 percent of the company, while Foreign institutional investors own 27.25 percent and domestic institutional investors own 34.35 percent.
Written by Omkar Chitnis
