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

Dr. Reddy's Laboratories Limited's revenue is projected to decrease from last year, a development that could lead investors to adopt a more cautious approach. A revenue decline can negatively affect profitability, signaling challenges for the company and making it less attractive for those seeking solid financial performance.

Financial Ratios:

currentRatio 1.89300
forwardPE 21.09590
debtToEquity 13.75100
earningsGrowth 0.02000
revenueGrowth 0.11400
grossMargins 0.57653
operatingMargins 0.20497
trailingEps 68.15000
forwardEps 343.11000

With a current ratio 1.893, Dr. Reddy's Laboratories Limited demonstrates the ability to service its short-term debt without difficulty. The company's strong cash reserves and current assets ensure that it can meet its liabilities, reflecting financial stability and healthy liquidity.
DRREDDY's Forward PE being in a reasonable range suggests the stock is fairly priced based on its earnings. The stock isn't overpriced, leaving room for growth, making it an attractive investment for those seeking opportunities for future value appreciation.
Dr. Reddy's Laboratories Limited's low Debt-to-Equity ratio means the company is not over-leveraged, highlighting its conservative use of debt. This suggests reduced financial risk and a stable balance sheet, making Dr. Reddy's Laboratories Limited a financially resilient company with lower exposure to debt-related pressures.
With positive gross and operating margins, DRREDDY demonstrates strong profitability. This reflects the company's ability to manage costs and maintain healthy profits, showcasing effective operational efficiency and financial stability.
With a forward EPS greater than its trailing EPS, DRREDDY is forecasted to be more profitable this year than last. This growth expectation reflects confidence in the company's earnings potential and suggests an improving financial trajectory for the year ahead.

Price projections:

Price projections for DRREDDY
Price projections for DRREDDY

DRREDDY's price has consistently been situated near the lower end of expected values. This ongoing trend may reflect investor skepticism about the company's growth potential and overall performance.

Recommendation changes over time:

Recommendations trend for DRREDDY
Recommendations trend for DRREDDY


Analysts have developed a sell bias for DRREDDY, urging caution for investors. It's essential to base investment decisions on multiple market indicators to avoid hasty conclusions. Relying on a broader scope of information will provide a more accurate assessment of DRREDDY's overall potential.