DRRD launched gZegerid under a limited competition; in FY17/18 we estimate it to add incremental revenue and PAT of US$ 33/35mn and US$ 15/16mn, implying incremental earnings of 4.1%/3.5%. Ahead, limited competition opportunities (gGleevec – US$ 2bn, Aloxi NDA – US$ 416mn, and Proposfol – US$ 350mn) in H2 could positively surprise our FY17 US sales estimates of US$ 1.14bn (vs. US$ 1.16bn in FY16). While we considered the gZegerid approval as part of DRRD guidance (i.e. more ANDA approval in FY17 than FY16) and our estimates, factoring the effect of recent buyback of 5.08mn equity shares, we raise our FY17/18 EPS estimates by 3% to Rs 156/185. Keeping the target valuation multiple intact, we value DRRD at Rs 3700, i.e 20x FY18 EPS (vs. Rs 3600 earlier). Additionally, we expect a rerating led by its plant clearance in the near future.Keeping the target valuation multiple intact, Phillip Capital value DRRD at Rs 3,700 (20x FY18 EPS) vs. Rs 3,600 earlier. Trendlyne has 21 reports on DRREDDY updated in the last year from 7 brokers with an average target of Rs 3647.5. Brokers have a rating for DRREDDY with 3 price downgrades,2 price upgrades,1 upgrade in past 6 months and 2 downgrades,5 price downgrades,2 upgrades and 8 price upgrades in past 1 Year.