Dr Reddy's shares crash 9% in 2 days; brokerages slash target prices after semaglutide supply disruption. What lies ahead?

Dr Reddy's Labs shares fell about 9 percent over two sessions to around Rs 1,222, wiping out more than Rs 10,600 crore in market capitalisation after the company flagged that certain batches of semaglutide were out of specification due to an API quality issue, delaying commercial supplies. Brokerages including Nuvama, JM Financial, Motilal Oswal, and Systematix cut target prices, with JM Financial trimming FY27 revenue, EBITDA, and PAT estimates by 7 percent, 16 percent, and 18 percent respectively, and Systematix downgrading the stock to Hold citing execution risk.