Buy Dr Reddy's Laboratories - Q4FY13 Result Update - Kotak

US launches hold the key. Dr. Reddy's reported a weak performance at the operating level primarily due to gross margin pressure in generics. Sales were marginally better than expected. Pricing pressure in the US base business has been the key reason for weak margin - we expect recent US launches and potential launch of complex generics in the US to drive improvement.

We remain positive on the US pipeline and expect stable earnings performance. Maintain BUY with increased TP at Rs2,230 (from Rs2,100 earlier; due to roll-forward).

Source : Equity Bulls

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