UBS removes Sun Pharma, adds Dr Reddy's to model portfolio

UBS added Sun TV and Dr Reddy’s to its Indian model portfolio, and removed Sun Pharma and Hero MotoCorp, the investment bank said in a note on Monday.

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The bank said that the fiscal 2013 outlook for Dr Reddy’s is “strong”, driven by the continued expansion of its US business, whereas Sun Pharma has outperformed the NSE index and has “limited upside” given current valuations.

UBS added Sun TV after Arasu Cables recently agreed to carry the television broadcaster’s channels.

UBS removed Hero from its portfolio, citing “muted” growth outlook for the company in the near-term because of expectations for reduced rural demand on the back of a poor monsoon season.

Reuters