We have a Neutral rating and a TP of Rs 3,440 based on 20x FY22 EPS. With improved performance across geographies we believe the multiple is well justified. US accounts for 36% of revenues and the key products - gNuvaring and gCopaxone account for ~20% of our FY22 estimates. Despite factoring in these launches along with sustenance of good performance in non US markets and margin expansion as per company guidance, upside appears limited from current market price. Dr. Reddys announced acquisition of select brands of Wockhardt in India and other markets for Rs 18.5bn, which is ~3.7x FY20e sales (Rs 5bn annualised) and ~15x FY20e EV/EBIDTA. The deal adds scale (~17% of India revenues) and deepens Dr Reddys presence in the acute segment. The key 5 brands account for ~50%+ of the acquired portfolio. We expect Dr. Reddys to revive the growth (the acquired portfolio declined 15% yoy due to issues at Wockhardt) with improved serviceability of the products and increased sales & promotion. While we need to analyse the product portfolio in detail, our preliminary analysis suggests that the deal should be 1-2% EPS accretive in FY22. Maintain Neutral. TP of Rs 3,440/sh.