Dolat Capital is bullish on Dr Reddys Laboratories (DRL) and has recommended buy rating on the stock with a target price of Rs 1931 in its July 20, 2012 research report.
"Dr Reddys Laboratories (DRL) revenue for the quarter grew 28.3% YoY to Rs 25.63bn led by 32.2% YoY growth in Global Generics, while PSAI segment grew 14.4% YoY. Growth in generic sales in North America was restricted at USD 159mn (up 27% YoY in constant currency) due to higher price erosion witnessed in new launches and selectively in its existing product basket. Russia registered sales of Rs 4.17bn (up 38.1% YoY), while European generics grew 13.6% YoY to Rs 2.18bn. Notably, Indian formulations reported a strong performance, growing 18.6% YoY to Rs 3.48bn."
"Gross margins for the quarter stood lower by mere 10bps YoY at 53.7% due to a) lower than expected contribution from US generics affected by price erosion b) decline in DEPB benefits and c) Rs 700mn loss on cash flow hedges. Tax for the quarter stood lower