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Q.

Dr Reddys lab is 1265 today risen from the low of 415 during the year----an appreciation of over 300 %. What led to this phenomenal rise of this stock? Any possible target up to March 2011?

Asked by Good Citizen, 22 Mar '10 03:57 pm
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Answers (2)

1.

The main reason for such a phenomenal rise is their outstanding performance both in India & overseas. The US Food & Drug Administration (FDA) granted them 23 final Abbreviated New Drug
Application (ANDA) approvals and four tentative ANDA approvals in 2009. Alliance with Glaxo SmithKline (GSK) to enable them develop & market over 100 products across an extensive number of emerging markets. One can hold with a strict stop loss for an upside of 1350 - 1400 in the short term while for the next year the target is 1600 plus!!
Answered by dharamender nebhnani, 22 Mar '10 07:36 pm

 
  
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2.

Dr. Reddy is no exception. Infact, pharma stocks to certain extent were the laggards in the market if you look at the percentage of appreciation from the time the market tanked to its lowest on March 9th, 2009 since the market crashed for the first time on January 22nd with a repeat show on January 23rd, 2008. The story is true of all pharma stocks if you consider the lowest to the highest from the period March 9th, 2009 to present day, including the intervening period, be it Ranbaxy, Sunpharma, Lupin, Cipla and a host of other pharma stocks.

Now compare this with a few random examples of stock, of which I am intimately familiar with, have been tracking them for donkey's years and know their movement by heart for more than the past 3 years.

Here it goes:

Tata Motors - 135 to 900 Plus - 6.5 times.
Suzlon - 33 to 147 - 4.5 times.
Siemens - 165 - 748 - 4.5 times.
IDFC - 41 to 178 - 4.4 times. ...more
Answered by Omega, 22 Mar '10 07:54 pm

 
  
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