DR REDDY'S LABS
Reco price/date: Rs 2,349/July 15;
Current/target price: Rs 2,354/Rs 2,489
Dr Reddy's generic launch of Eisai's limited-competition branded injection, Dacogen, in the US is likely to positively affect Dr Reddy's FY14 earnings by 2.5-3 per cent. Whilst this product is currently sold only by the innovator, there is no patent blocking the entry of generic players. Apart from Dr Reddy's, analysts expect at least two-three generic companies to receive approvals from the US FDA. The launch of the Decitabine Injection is yet another indicator (following the launch of the Zoledronic Injection) of Dr Reddy's growing focus towards a limited-competition niche portfolio. Valuations appear attractive at 19.9 times one-year forward core earnings, a 11 per cent discount to its historical three-year average. Maintain Buy.
-ambit capital IVRCL Reco price/date:
Rs 16/July 15; Current/target price:
Rs 16/Rs 29
IVRCL's building and factories division has bagged various orders worth Rs 573 crore. The company said the water division of the company had bagged three orders worth Rs 472 crore, which includes a major order of Rs 311 crore by the Orissa water supply and sewerage board. This includes construction of sewers for Bhubaneswar sewerage district-VI and the completion period is three years from the start. Also, the company has bagged orders worth Rs 53 crore in the power division. Maintain Buy.