Dr Reddy's Lab hits record high

The stock has outperformed the market by surging 13% in past one month compared to 4.4% rise in Nifty and 8.4% jump in pharma index.

Dr Reddy’s Laboratories is trading higher by 4.4% at Rs 1,985, also its record high on the National Stock Exchange (NSE). The stock opened at Rs 1,918 and has seen a combined 312,442 shares changing hands on the counter till 1211 hours on NSE and BSE.

The pharmaceutical stock has outperformed the market by surging 13% in past one month after the company settled its claims against Ottawa headquartered Nordion Inc. (formerly MDS Inc.) in a case pending in a district court of New Jersey in the US, for a cash payment of $ 22.5 million by Nordion to Dr Reddy’s Lab.

The benchmark Nifty has gained 4.4%, while the sector pharma index surged 8.4% during the same period.

Meanwhile, Analyst at Edelweiss Securities upgrades to BUY rating on the stock with target price of Rs 2,000 per share.

“The company’s recent niche launches will offer upside to US sales in FY14. These niche products offer superior margin that will more than offset price erosion in mature portfolio,” says analyst in report dated April 16.

Apart from US, Russia continues to post robust growth, offering flexibility to invest in complex opportunities while India’s growth is also on the rise, added report.