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 expected to fall below the previous year's, investors are likely to approach the stock with caution. Declining revenues can negatively affect profitability, which makes it harder for the company to maintain investor confidence and perform well in the market.

Financial Ratios:

currentRatio 1.918000
forwardPE 22.471613
debtToEquity 13.870000
earningsGrowth 0.220000
revenueGrowth 0.201000
grossMargins 0.584970
operatingMargins 0.198260
trailingEps 67.780000
forwardEps 343.110000

DRREDDY's current ratio of 1.918 highlights the company's solid liquidity, indicating that it can easily service its short-term debt. DRREDDY's ample cash reserves and current assets ensure that the company is well-positioned to meet its immediate financial liabilities.
DRREDDY's Forward PE ratio suggests that the stock is priced appropriately in relation to its earnings. Not being overpriced, it offers room for growth, signaling potential upside for investors looking for a stock with reasonable valuation and growth potential.
DRREDDY's low Debt-to-Equity ratio demonstrates that the company is not over-leveraged. This means it maintains a healthy balance between debt and equity, lowering financial risk and contributing to overall financial stability, which could attract risk-averse investors.
DRREDDY's positive earnings and revenue growth reflect a strong outlook for the company's business expansion. The company is expected to continue growing, with increasing profitability and sales driving further growth in the near future.
DRREDDY's forward EPS exceeding its trailing EPS means that the company is expected to increase profitability in the current financial year. This reflects improved earnings potential, signaling that DRREDDY is likely to outperform its previous year's financial performance.

Price projections:

Price projections for DRREDDY
Price projections for DRREDDY

Price projections for DRREDDY have been gradually lowered, signaling reduced optimism among analysts. This downward adjustment suggests that the company may face challenges in meeting previous growth expectations.

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.