Overall Fundamental outlook

Business Operations:

Sector: Healthcare
Industry: Drug Manufacturers - Specialty & Generic

Dr. Reddy's Laboratories Limited, together with its subsidiaries, operates as an integrated pharmaceutical company worldwide. It operates through Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Others segments. The company's Global Generics segment manufactures and markets prescription and over-the-counter finished pharmaceutical products that are marketed under a brand name or as a generic finished dosages with therapeutic equivalence to branded formulations, as well as engages in the biologics business. The PSAI segment manufactures and markets active pharmaceutical ingredients and intermediates, which are principal ingredients for finished pharmaceutical products. This segment also provides contract research services; and manufactures and sells active pharmaceutical ingredients and steroids in accordance with the specific customer requirements. The Others segment engages in developing therapies in the fields of oncology and inflammation; research and development of differentiated formulations; and provides digital healthcare and information technology enabled business support services. The company offers its products for various therapeutic categories primarily include gastro-intestinal, cardiovascular, anti-diabetic, dermatology, oncology, respiratory, stomatology, urology, and nephrology. Dr. Reddy's Laboratories Limited was incorporated in 1984 and is headquartered in Hyderabad, India.

Revenue projections:

Revenue projections for DRREDDY
Revenue projections for DRREDDY

With DRREDDY's revenues forecasted to be lower than last year's, investors are expected to be cautious. A decline in revenue typically harms the company's bottom line, reducing profitability and making investors less confident about the company's ability to sustain its financial health.

Financial Ratios:

currentRatio 1.852000
forwardPE 22.937899
debtToEquity 16.167000
earningsGrowth 0.146000
revenueGrowth 0.098000
grossMargins 0.564320
operatingMargins 0.184460
trailingEps 70.260000
forwardEps 343.110000

With a current ratio of 1.852, DRREDDY has the liquidity needed to easily service its short-term debt. The company's cash reserves and current assets are sufficient, indicating that DRREDDY is in a strong position to meet its immediate financial obligations without difficulty.
DRREDDY's Forward PE is positioned well, reflecting a favorable balance between stock price and earnings. The stock isn't overpriced, offering room for growth and making it a potentially rewarding investment as its value has room to rise further.
DRREDDY's low Debt-to-Equity ratio reflects the company's conservative use of debt. This shows that it isn't over-leveraged, reducing financial risk and indicating a stable financial structure, which is a positive signal for investors concerned about excessive debt burdens.
DRREDDY's forward EPS surpasses its trailing EPS, indicating that the company is expected to be more profitable in the current financial year. This reflects growing confidence in DRREDDY's earnings potential, suggesting stronger financial performance compared to the previous year.

Price projections:

Price projections for DRREDDY
Price projections for DRREDDY

DRREDDY's stock price has regularly been near the lower end of projections, indicating that it may be struggling to attract investor interest. This pattern suggests a cautious sentiment surrounding the company's future performance.

Recommendation changes over time:

Recommendations trend for DRREDDY
Recommendations trend for DRREDDY


Analysts have signaled a sell bias for DRREDDY, but investors should consider a broad range of market indicators before making any decisions. This ensures a well-rounded understanding of DRREDDY's position in the market and helps avoid reactionary moves based solely on this sentiment.