Indiabulls Securities Ltd has maintained a ‘Hold’ rating on Dr Reddy’s Laboratories stock with a long term target above Rs 700.

According to Indiabulls, investors who have already purchased the stock can go long with the intention of making a big profit.

On the other hand, interested investors can purchase the stock on declines with a strict stop loss of Rs 585. Current EPS and PE Ratio stood at 28.26 and 22.93 respectively. The share price has seen a 52-week high of Rs 760 and a low of Rs 501 on BSE.

Any decline in the stock price corresponding to the broad market can be used as a prospect to take fresh exposure.

Dr Reddy`s Laboratories on Jul. 08, 2008 has signed up a global distribution agreement for Ibuprofen API with Albemarle, a US-based specialty chemicals company. The agreement shall come into effect immediately.

The US-based subsidiary of Dr Reddy’s Laboratories received ANDA approval from the United States Food and Drug Administration (USFDA) for Granisetron Hydrochloride injection, in the strengths of 0.1 mg/ml and 1 mg/ml.

On 17 June, the compensation committee of the board of directors of Dr Reddy’s Laboratories has allotted 93,297 equity shares of Rs 5 each to directors / employees who have exercised their stock options under employees stock option scheme, 2002.

Moreover, Dr Reddy`s Laboratories, has decided to partner with world`s biggest producer of opium-based drugs, UK`s Johnson Matthey, for the highly-controlled segment of narcotic drugs.

Dr Reddy’d Labs will sell 49% in its wholly-owned subsidiary Macred India to Johnson Matthey.

The government has received a request from the Johnson Matthey for acquiring 49% stake in Marced India. The application is to be considered by the Foreign Investment Promotion Board (FIPB) this week.

DRL has also signed a definitive agreement to acquire BASF's pharmaceutical contract manufacturing business and related facility in Shreveport, Louisiana.

The company is progressing but on slow pace, so investors need not to worry, and remain invested in the stock to reap good returns.