Buy Dr Reddys Laboratories; target Rs 2280: AnandRathi
AnandRathi is bullish on Dr Reddys Laboratories and has recommended buy rating on the stock with a target of Rs 2,280.
June 28, 2013 / 12:25 IST
AnandRathi's research report on Dr Reddys Laboratories
"Dr Reddys Laboratories, we believe that the continuous launch of limited-competition products in the US market and the ramp-up in supplies of its present product range would help sustain the growth momentum in the US. We are positive regarding the medium-term growth outlook following the company's strong product pipeline for the US market and potential gain from the rupee depreciation as over 80% of its revenue arises from exports. The company has a cash-flow hedge of ~USD470m at Rs 56-59, compared to the FY13 average realization of ~Rs 52-53. The healthy US product pipeline (with limited-competition opportunities) and the reasonable valuations lead us to maintain a buy on the stock, with a target of Rs 2,280 based on 20x Sep'14e earnings. It trades at 19.7x FY14e and 17.3x FY15e earnings," says AnandRathi research report.Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
