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 revenue forecasted to drop below last year's level, investors are expected to take a cautious stance. Such declines typically affect a company's bottom line, reducing profitability and making investors hesitant to invest heavily in the company until financial performance improves.

Financial Ratios:

currentRatio 1.893000
forwardPE 21.954403
debtToEquity 13.751000
earningsGrowth 0.020000
revenueGrowth 0.114000
grossMargins 0.576530
operatingMargins 0.204970
trailingEps 68.060000
forwardEps 343.110000

With a current ratio of 1.893, 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 ratio suggests the stock price is reasonable in relation to earnings. It's not overpriced, providing room for future growth, making the stock a potentially valuable investment for those seeking long-term gains.
DRREDDY's low Debt-to-Equity ratio means the company is not highly leveraged. This suggests a sound financial position with minimal reliance on debt, reducing risk and ensuring greater financial flexibility, making it a more stable option for investors.
DRREDDY's positive gross and operating margins suggest that the company is operating profitably. These strong margins indicate effective cost management and revenue generation, contributing to a solid financial foundation.
Dr. Reddy's Laboratories Limited's forward EPS exceeds its trailing EPS, indicating that the company is projected to be more profitable in the current financial year compared to the previous one. This suggests positive growth and improved earnings, signaling an optimistic outlook for Dr. Reddy's Laboratories Limited's financial performance.

Price projections:

Price projections for DRREDDY
Price projections for DRREDDY

Dr. Reddy's Laboratories Limited's price has consistently remained near the lower edge of projections, suggesting that it is not fully meeting market expectations. This could indicate a need for improved performance or strategies to boost investor confidence.

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.