India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Dr. Reddy's Lab (REDY.BO)
Research Tactical Idea
We believe the share price will rise in absolute terms over the next 30 days.
This is because the stock has traded off recently, making short term valuation much more compelling. DRL has been a
modest performer in the recent past - down 8% YTD (outperforming index by 2%). This, coupled with a few product
catalysts ahead (re-launch from GSK Bristol site in Sep'11, Arixtra - in next 1-2 months, Zyprexa 80mg - Oct'11) and
inexpensive valuations - 16x and 14.5x F12 and F13 MSe makes for good price performance in the months ahead, in our
view. We closed our RTI on DRL last week after the company received Import Alert for its Mexican facility. We believe this
now appears discounted in the stock price.
We estimate that there is about an 80%+ or "highly likely" probability for the scenario.
Estimated probabilities are illustrative and assigned subjectively based on our assessment of the likelihood of the
scenario.
Stock Rating: Overweight
Industry View: In-Line
No comments:
Post a Comment