Why stock market experts are bullish on Dr. Reddy's shares? Key levels to watch1 min read . Updated: 06 Sep 2021, 02:07 PM IST
- Dr Reddy's Laboratories has sold out its rights of anti-cancer agent to a US-based Citius Pharmaceuticals
Dr. Reddy's Laboratories shares today are in focus after the pharma major informed that it has entered an agreement with US-based Citius Pharmaceuticals to sell its rights to anti-cancer agent. Apart from this, company has said that it will be launching made in India Sputnik V vaccine in India by September to October this year.
Stock market experts said that amid rising cases of Covid-19 in India fear of third wave is still around. Therefore, they are bullish on DRL shares as the drug firm can be one of the major beneficiaries, in case there is third wave of Covid-19 in India, as demand for covid vaccines will go up.
Highlighting the fundamentals that may support Dr. Reddy's Laboratories share price rally; Ravi Singhal, Vice Chairman at GCL Securities said, "Dr. Reddy's has promised to launch Sputnik V vaccine by September to October. Amid rising cases of Covid-19 in India, market has a feeling that third wave of the pandemic is still around. In case, third wave of Coronavirus takes place, Dr. Reddy's may emerge s one of the major beneficiaries as demand for Covid vaccines will suddenly go northward. Apart from this, the pharma company has sold out its rights of anti-cancer agent to a US-based company, which is also going to work as short-term trigger for the company."
Speaking on the reason for being bullish on Dr. Reddy's Laboratories share price; Rahul Sharma, Co- Founder at Equity99 said, "Dr Reddy's is India's pharmaceutical company that offers a portfolio of products and services, including Active Pharmaceutical Ingredients (APIs), Custom Pharmaceutical Services (CPS), generics, biosimilars, and differentiated formulations. It derives 80 per cent of its revenue from the Global Generic segment. The company recently sold its rights of anti-cancer agent to Citius Pharma."
Advising short-term investors to buy Dr. Reddy's shares; Sumeet Bagadia, Executive Director at Choice Broking said, "One can initiate momentum buy at current market price for immediate short-term target of ₹5050 to ₹5200 maintaining stop loss at ₹4800."
Asking investors to hold the counter for short to medium-term; Rahul Sharma of Equity99 said, "We expect this counter to reach the target price of ₹5300. One can buy the counter at current levels maintaining stop loss at ₹4700."
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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