Dr. Reddy's Shares Surge 3% on Strong Q3 Results, Analyst Upgrades

• Dr. Reddy's Laboratories reported better-than-expected Q3 results with 4.4% revenue growth, driven by India, Europe, and emerging markets.
• Operating margins positively surprised at 23%, exceeding estimates of 21%.
• CLSA upgraded the stock to 'Hold' with a target of ₹1,210, citing revenue and earnings beat, while HSBC retained 'Buy' with a ₹1,435 target.
• Semaglutide is identified as a potential new growth driver, with India launch targeted for March 21 and filings planned across 80 markets.
• Citi reiterated 'Sell' with a ₹1,070 target, flagging tapering Revlimid contributions and potential pressure from higher expenses and semaglutide pricing.

Why It Matters: Dr. Reddy's Q3 performance exceeded expectations, leading to analyst upgrades despite some divided sentiment.