Operating performance significantly below estimates: Dr. Reddy’s Laboratories (DRRD) reported weak 1QFY17 sales of INR32.3b (down ~14% YoY, 17% below estimates) with EBITDA margin of 11.7% (v/s 26.2% in 1QFY16 and MOSL estimate of 21.5%). This significant miss can largely be attributed to: 1) decline in the US, EM and PSAI sales, 2) higher remediation cost and 3) cost related to the launch of 505 (b)(2) products.Motilal Oswal maintain Neutral with a TP of INR3,000 @ 18x FY18E PER (v/s INR3,200 @18x FY18E PER)Trendlyne has 24 reports on DRREDDY updated in the last year from 7 brokers with an average target of Rs 3339.2. Brokers have a rating for DRREDDY with 1 downgrade,6 price downgrades,1 upgrade,2 price upgrades in past 6 months and 3 downgrades,8 price downgrades,2 upgrades,8 price upgrades in past 1 Year.