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 Dr. Reddy's Laboratories Limited's revenue expected to be lower than the previous year, investors may become cautious. Declining revenues often negatively impact the bottom line, reducing profitability and raising concerns among investors about the company's ability to maintain strong financial performance moving forward.

Financial Ratios:

currentRatio 1.918000
forwardPE 22.304676
debtToEquity 13.870000
earningsGrowth 0.220000
revenueGrowth 0.201000
grossMargins 0.584970
operatingMargins 0.198260
trailingEps 67.750000
forwardEps 343.110000

DRREDDY's current ratio being 1.918 shows it has more than enough assets to cover its short-term debts. The company's liquidity position is strong, with ample cash reserves available to meet its immediate financial obligations without strain.
DRREDDY's Forward PE being in a good range indicates the stock is priced well relative to its earnings. It is not overvalued, leaving space for future growth, making it an appealing option for investors interested in long-term value appreciation.
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.
With positive earnings and revenue growth, DRREDDY is on a path to expand its business. This strong financial performance suggests the company will continue to grow, as increasing profits and revenue highlight a healthy outlook.
DRREDDY's forward EPS being higher than its trailing EPS suggests that the company is expected to generate stronger profits this year. This points to improving financial performance, with DRREDDY anticipated to deliver better earnings than it did in the prior year.

Price projections:

Price projections for DRREDDY
Price projections for DRREDDY

DRREDDY's price projections have been steadily revised down, pointing to declining confidence in the company's outlook. This suggests that analysts are becoming more conservative in their expectations for DRREDDY's future performance.

Recommendation changes over time:

Recommendations trend for DRREDDY
Recommendations trend for DRREDDY


Analysts have shown a sell bias toward DRREDDY, signaling potential caution for investors. However, it's recommended to base investment decisions on a wider range of market indicators to get a fuller understanding of the stock's trajectory, avoiding overreliance on a single sentiment.