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 revenues forecasted to be lower than last year's, investors are expected to be cautious. A decline in revenue typically harms the company's bottom line, reducing profitability and making investors less confident about the company's ability to sustain its financial health.

Financial Ratios:

currentRatio 1.893000
forwardPE 21.754461
debtToEquity 13.751000
earningsGrowth 0.020000
revenueGrowth 0.114000
grossMargins 0.576530
operatingMargins 0.204970
trailingEps 68.050000
forwardEps 343.110000

DRREDDY's current ratio of 1.893 means the company has enough liquidity to meet its short-term debt obligations. With sufficient cash reserves and current assets, DRREDDY can comfortably cover its liabilities, reflecting a strong financial outlook.
DRREDDY's Forward PE is at a healthy level, meaning the stock price is aligned favorably with earnings. This suggests that the stock isn't overpriced, providing room for growth and making it an appealing option for investors looking to capitalize on potential future gains.
DRREDDY's low Debt-to-Equity ratio reflects limited reliance on debt, signaling the company is not over-leveraged. This lower financial risk suggests that DRREDDY has a strong capital structure, which can help sustain long-term stability and attract cautious investors.
DRREDDY's positive gross and operating margins reflect its ability to generate profits from operations. These margins demonstrate efficient cost control and profitability, indicating strong financial health for the company.
Dr. Reddy's Laboratories Limited'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 Dr. Reddy's Laboratories Limited anticipated to deliver better earnings than it did in the prior year.

Price projections:

Price projections for DRREDDY
Price projections for DRREDDY

The stock price of Dr. Reddy's Laboratories Limited has frequently been close to the lower end of analysts' projections. This trend indicates potential struggles for the company in achieving the growth anticipated by the market.

Recommendation changes over time:

Recommendations trend for DRREDDY
Recommendations trend for DRREDDY


Analysts have developed a sell bias for Dr. Reddy's Laboratories Limited, indicating potential caution for investors. However, it's important to base decisions on a broader set of market indicators to gain a more complete understanding of Dr. Reddy's Laboratories Limited's future and avoid reacting solely to the analysts' negative sentiment.