Hem Securities has recommended a buy rating on Dr Reddys Laboratories with a target price of Rs 700 in its april 8, 2009 research report.
“Dr Reddys Laboratories expects revenue of more the USD 4 million with the successful launch of Rituximab and plans for launch of 2 products in FY10 and 1 product every year, thereafter. Dr. Reddy Laboratories, a low leverage company (debt: equity ratio 0.43 for FY09), has posted tremendous growth over the past few years. De-spite of pledging of shares by promoters to the extent of 6.19% and curtailment of small generic drugs market abroad, the company seems to continue its growth momentum through its high revenue generating base business and seems to be extremely attractive investment oppor-tunity in the Indian Pharmaceutical space.”
“Since the stock offers good investment opportunity, we initi-ate a ‘BUY’ signal on the stock with a target price of Rs 700 in me-dium to long term investment horizon expecting an appreciation of about 35 % from the current level of Rs 520,” says Hem Securities’ research report.
Related posts: