Analyst Calls: Dr Reddy’s Lab, Sun Pharma, Voltas, RIL

Good morning!

The domestic stock market on Tuesday showed early signs of a possible breakout from its consolidation range. And Nifty futures on Singapore traded 32 points higher this morning, signalling a good start for Dalal Street.

As you head for the day’s trade, here is a compilation of overnight analyst calls on various stocks.

• Nomura has a buy rating on Dr Reddy’s Laboratories with a target price of Rs 3,200. Amneal is the first generic company to receive approval for a generic version of Nuvaring, said Nomura. Dr Reddy’s and Teva are the other known filers, it said. Amneal will have first-mover advantage; hence, the upside for Dr Reddy’s is likely to be curtailed to an extent, it said. Shares of Dr Reddy’s Laboratories ended down 0.2 per cent at Rs 2,816.25 on Monday.

• Morgan Stanley has maintained overweight rating on Sun Pharmaceutical Industries with a target price of Rs 530 after the firm received Form 483 with eight observations at its Halol facility. The nature of the observations will be understood once the FDA makes Form 483 public, said Morgan Stanley. Until then, it is difficult to assess the severity of the issue, it said. It is becoming common for India pharma firms to receive observations and resolve many of them in time, given the large number of manufacturing sites servicing the US market, it said. Shares of Sun Pharma ended down 0.8 per cent at Rs 435 on Monday.


• Edelweiss has maintained buy rating on Voltas with a target price of Rs 808. The brokerage has maintained Voltas as its top pick in consumer durables. The brokerage sees significant potential for Voltas and the Volt-Bek JV in room ACs, refrigerators and washing machines given the huge unmet demand in the country, the company’s scalable business model and the heft an incumbent enjoys. Shares of Voltas ended down 0.1 per cent at Rs 678.95 on Monday.

• Antique Stock Broking has maintained hold rating on Cummins India with a target price of Rs 575. Cummins India has maintained its guidance for both domestic and export businesses citing concerns on the overall economic activity, said Antique. The brokerage has maintained its cautious stance as visibility around any meaningful recovery in the demand situation remains dim in the near term. Shares of Cummins India ended down 0.5 per cent at Rs 545.8 on Monday.

• Morgan Stanley has an overweight rating on Reliance Industries with a target price of Rs 1,753. Reliance Industries in the past three years has made $3 billion of acquisitions, most recently in Asteria Aerospace, which provides drone technology solutions to military/industrial companies, including oil & gas, said Morgan Stanley. Global oil majors are focused on artificial intelligence and robotics to lower costs and Reliance Industries could do the same, said Morgan Stanley. Shares of Reliance Industries ended down 1 per cent at Rs 1,566.55 on Monday.