Hold Dr. Reddys; target of Rs 3280: Religare

DRRD’s 20-F filing highlights: (a) extended NLEM list and WPI-linked price cuts to have a combined adverse impact of 3-5% on FY17 domestic revenues, (b) higher focus placed on US specialty segment (sales force more than doubled), (c) rising contribution from OTC business in Russia, and (d) generic R&D spends of US$ 170mn-175mn in FY16 broadly in line with peers. DRRD spent US$ 22mn-24mn on remediation of three facilities in FY16 and management believes a large part of this cost is in the base. Maintain HOLD.For all recommendations, click here 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.