Emkay research report on DrReddys LabsWe value Dr Reddy’s at 22x Sep’17E EPS of Rs 192/share giving us our target price of Rs 4,224/share. Downgrade to Hold given limited upside and risks to earnings.Results buoyed by surprising improvement in Russia & Europe geographies, sustaining growth rates uncertain Surprisingly US revenue growth, lynchpin of higher earnings trajectory, disappointed again despite high value launch of gNamenda Copaxone now appears to be FY18 launch, overall US launch commentary also weak, expect consensus numbers to be lowered for FY17/18 Rescission of ANDA’s dependent on Srikakulam APIs a sentiment dampener, should bring the regulatory issues around the plant back in focus Maintain our estimates but lower our rating to HOLD given limited upside from current stock price. Risks to earnings remain on the downside. We value Dr Reddy’s at 22x Sep’17E EPS of Rs 192/share giving us our target price of Rs 4,224/share. Downgrade to Hold given limited upside and risks to earnings 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.
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