DRL Q2 in line with view, coming qtrs may not be great: experts

She said that following quarters may not be this great as the impact of upcoming domestic competition is yet to be seen.

Market expert Prakash Diwan also shared his views on the results.Below is the interview transcript.Ekta: Stock is up around two percent odd. Your take? Diwan: This is what happens when you have the recency effect. The last quarter was a howler and going into numbers there were lot of shots that was still in the system. The stock just kind of pleasantly surprised by not being so weak on the numbers, that is one. But what seems to be now a trend and hence a concern which could continue for a while is the North American lack of pricing that they are getting in that market. They just can't probably inch up prices in any which way. They don\\'t have any new launches also at least in the next two quarters. So, there is going to be a little bit of stress there and another worry that I would like to caution and take these numbers with a little bit of pinch of salt is while the Indian numbers look positive you do have the new overhang of the penalties that are going to be again kind of coming in to fore because Cipla and Dr. Reddy\\'s both had challenged that the national pharma pricing regulator has come up with those things and those are contingent liabilities which could still be quite heavy on both these companies. So, I would look at waiting for those things to pan out before buying into the stocks but if somebody is probably holding from a lower level it does give you a trading opportunity to kind of exit at a much better level than just that sub Rs 3,000 mark. Ekta: What was the positive and what was the negative take if you have to point out two things for Dr. Reddy's this time? Shetty: On the positive side obviously India has done pretty good with a good 20 percent kind of growth and if I look at the margins also they are holding up pretty well. But we also need to remember that certain drugs wherein they had increased the market shares on Nexium was good at around 14-15 percent odd market share. And even the launch of Nitrostat has done pretty well for them. But on the contrary we also have to remember that competition which has come up in Vidaza and some bit of in the acquisition and all we are yet to see the impact of that. So, although the numbers look pretty good I think that following quarters may not be this great because we haven't yet seen the impact of those competitions.Ekta: Your quick take on Dr. Reddy's and what are you recommending in terms of the stock as well? Nangra: Overall if I have to just put it in a snapshot it is I guess more or less in line with expectation. Topline is closer to my estimate. OPM is closer to my estimate. Profit is tad below my expectation, I need to see why the variation but it is not that big variation. I guess, more or less I would say in line. As far as rating concern we are neutral as of now and we are awaiting more clarity and valuation wise they are more or less fairly valued and we are neutral. Ekta: If you have to hear the conference call what are the key things that you are going to be waiting out for in terms of commentary and what would you like to hear from the management. Would you make your decision more solid post that or are you quite certain looking at the numbers? Diwan: As I would say just a four percent improvement on North American numbers for last quarter's really it is still not to me indicative of them being out of the woods. So, what is going to be important is how they spread the next two quarters and what kind of strategies they would adopt to do that because that is a gorilla in the room. And once we have clarity on that then the Indian numbers would also kind of compliment or fall in place. So, I am going to be clearly looking at the stock in case I want to buy in definitely after the conference call because the stock has a tendency to slip back very quickly. There is a slightness of disappointment.