Maintain Underperform with TP of Rs 5010.
Growth of acquired brands has remained stagnant in recent years and will require upfront investments.
Impact of synergies from the acquired portfolio should start reflecting only over FY27-28.
The acquisition is for GBP500m implying 2.3x sales, ~9x EV-Ebitda on CY23 numbers.
Dr Reddy expects the deal to be margin accretive; remains confident of achieving 25% Ebitda margin on a consolidated basis. (Source: ETNow)
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