0659 GMT - Dr. Reddy's Laboratories has likely been impacted by short-term margin headwinds, Axis Securities analysts say in a research report as they downgrade the stock's rating to hold from buy and lower the target price to INR1,250.00 from INR1,450.00. The Indian pharmaceutical company's gross margins fell sharply in 4Q FY25 mainly due to costs related to manufacturing overheads, the analysts note. Its North American operations also saw muted growth owing to pricing pressure and lower sales of select products. Moreover, an expected decline in sales of its gRevlimid drug poses short-term headwinds, the analysts add. Shares are 2.5% higher at INR1,185.35. (ronnie.harui@wsj.com)

(END) Dow Jones Newswires

May 12, 2025 02:59 ET (06:59 GMT)

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