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

DRREDDY is projected to experience a revenue decline compared to last year, a development that often leads to investor caution. The drop could negatively impact the company's bottom line, as lower revenues typically signal reduced profitability, prompting more conservative investment strategies.

Financial Ratios:

currentRatio 1.880000
forwardPE 22.414106
debtToEquity 18.026000
earningsGrowth -0.143000
revenueGrowth 0.044000
grossMargins 0.551820
operatingMargins 0.164210
trailingEps 67.830000
forwardEps 55.126000

DRREDDY's current ratio being 1.88 suggests that it has more than enough liquidity to cover short-term debt obligations. The company's cash reserves and current assets are sufficient to meet immediate liabilities, signaling solid financial health and minimal risk.
Dr. Reddy's Laboratories Limited's Forward PE is in a strong range, indicating that its stock price compares well with its earnings. The stock is not considered overpriced, leaving ample room for growth and making it a promising option for investors looking for value and future returns.
DRREDDY's low Debt-to-Equity ratio means it is not excessively leveraged, implying a reduced financial risk profile. This suggests DRREDDY maintains a well-balanced financial structure, with more emphasis on equity than debt, ensuring greater flexibility and long-term stability.
Dr. Reddy's Laboratories Limited's low earnings and revenue growth indicate potential profit shrinkage. This suggests that the company's financial performance may be weakening, raising concerns about its future profitability and overall business outlook.
DRREDDY's negative gross and operating margins suggest the company is not generating profit from either its production process or day-to-day operations. This could signal cost overruns or difficulties in maintaining revenue levels.
DRREDDY's lower forward EPS compared to its trailing EPS indicates that the company may be less profitable in the upcoming year. This suggests a potential slowdown in earnings, which could be a sign of weaker financial performance ahead.

Price projections:

Price projections for DRREDDY
Price projections for DRREDDY

Throughout its recent performance, DRREDDY's price has been consistently close to the lower range of projected values. This suggests that the company may face challenges in achieving higher valuations in the eyes of investors.

Recommendation changes over time:

Recommendations trend for DRREDDY
Recommendations trend for DRREDDY


Analysts have collectively offered a mixed outlook on DRREDDY, refraining from clear buy or sell ratings. This uncertainty highlights the need for investors to perform additional due diligence, as the stock's future direction remains unclear in the market.