Buy Dr Reddy To Achieve Short-Term Target Of Rs 910: Nirmal Bang

Buy Dr Reddy To Achieve Short-Term Target Of Rs 910: Nirmal BangIn its latest research report, Nirmal Bang, an equity research firm said that Dr Reddys Laboratories, which has been consolidating between Rs 820-833 level, can give good returns in the short term.

The report further stated that, if the counter is successful to breach Rs 870 levels, then it will create a huge breakout.

Nirmal Bang has advised investors that the stock of the company is giving an evidence of a strong breakout, so hold it to achieve a target price above Rs 910.

The stock has strong support at Rs 790.

Today (Sep 11), the shares of the company opened at Rs 830.20 on the Bombay Stock Exchange (BSE). Current EPS and P/E of the stock stood at 34.29 & 23.48 respectively. The share price has seen a 52-week high of Rs 851.55 and a low of Rs 357 on BSE.

Drug manufacturer Dr Reddy’s Laboratories has got final nod from the US Food & Drug Administration (USFDA) to make and sell Nateglinide tabs, in potencies of 60 mg and 120 mg.

Nateglinide is a suggested to treat type 2 diabetes. The drug brings down the blood glucose level by stimulating the release of insulin.

Dr Reddy’s Lab, on Sep 03, has allotted equity shares of Rs 5 each to director/employees on exercise of their stock options.

The company issues 69,519 equity shares of Rs 5 per share pursuant to the company’s ESOS, 2002.

Dr Reddy’s Lab also allotted approx 8,490 equity shares having value of Rs 5 each underlying 8,490 ADRs pursuant to the company’s Employees ADR Stock Option Scheme, 2007.