Dr Reddy's Labs gains after brokerage upgrade

Dr Reddy's Laboratories rose 1.76% to Rs 3,236.85 at 14:13 IST on BSE after a foreign brokerage upgraded the stock to "overweight" from "equal-weight".

Meanwhile, the BSE Sensex was up 64.92 points, or 0.23%, to 27,925.30.

On BSE, so far 9,714 shares were traded in the counter, compared with an average volume of 19,631 shares in the past one quarter.

The stock hit a high of Rs 3,244.95 and a low of Rs 3,172.75 so far during the day. The stock hit a record high of Rs 3,353.85 on 25 September 2014. The stock hit a 52-week low of Rs 2,250 on 19 May 2014.

The stock had underperformed the market over the past one month till 3 November 2014, falling 0.62% compared with 4.86% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 15.40% as against Sensex's 9.34% rise.

The large-cap company has an equity capital of Rs 85.18 crore. Face value per share is Rs 5.

The brokerage said drugmaker's US pipeline outlook has strengthened and valuations appears to be reasonable. The brokerage said it expects a better outlook for the financial year ending March 2016 (FY16) and the financial year ending March 2017 (FY17) as underlined by improving India, and US businesses.

On a consolidated basis, Dr Reddy's Laboratories net profit fell 16.82% to Rs 574.10 crore on 5.64% growth in total income to Rs 3614.37 crore in Q2 September 2014 over Q2 September 2013.

Dr Reddy's Laboratories is an integrated global pharmaceutical company. Through its three businesses - Pharmaceutical Services and Active Ingredients, Global Generics and Proprietary Products - Dr Reddy's offers a portfolio of products and services including active pharmaceutical ingredients (APIs), custom pharmaceutical services, generics, biosimilars and differentiated formulations.

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