Dr. Reddy’s Lab Long term outlook intact; Maintain Accumulate ::Emkay

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Dr. Reddy’s Lab

Long term outlook intact; Maintain Accumulate

ACCUMULATE

CMP: Rs 1,655                                        Target Price: Rs 1,750

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n     Q4FY11 Revenues were above expectations. Revenues at Revenues at Rs20.2bn (up 29%YoY), b) EBITDA at Rs4.4bn (up 53% YoY), and c) PAT at Rs3.3bn (up 101% YoY)

n     Revenues were driven by 37% growth in Global Generics, 31% increase in Proprietary Products business and 13% growth in PSAI segment

n     The company launched Allegra this quarter, we estimate the product to have contributed US$22-25mn

n     Maintain Accumulate with a price target of Rs1750