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 revenues are expected to fall below last year's, and this forecast tends to raise concerns among investors. A revenue drop can negatively impact the company's profitability, making investors more cautious about their positions due to the risks of declining financial performance.

Financial Ratios:

currentRatio 1.91800
forwardPE 16.92639
debtToEquity 15.88600
earningsGrowth 0.02400
revenueGrowth 0.15900
grossMargins 0.59314
operatingMargins 0.22382
trailingEps 64.39000
forwardEps 343.11000

DRREDDY's current ratio, being 1.918, means the company is well-positioned to meet its short-term debt obligations. This reflects DRREDDY's strong liquidity, as its cash reserves and current assets provide more than enough coverage for its immediate liabilities.
DRREDDY's Forward PE is in a favorable range, suggesting the stock is reasonably priced relative to its earnings. This indicates the stock is not overpriced, providing room for potential growth and making it an attractive option for investors looking for solid value and future upside.
Dr. Reddy's Laboratories Limited's low Debt-to-Equity ratio reflects the company's conservative use of debt. This shows that it isn't over-leveraged, reducing financial risk and indicating a stable financial structure, which is a positive signal for investors concerned about excessive debt burdens.
Dr. Reddy's Laboratories Limited's positive gross and operating margins indicate healthy profitability. These margins reflect the company's ability to generate income efficiently from its operations, signaling strong financial performance and effective cost management.
DRREDDY's forward EPS is higher than its trailing EPS, which signals that the company is expected to achieve greater profitability this financial year. This suggests improved earnings performance, indicating a positive outlook for DRREDDY's financial growth.

Price projections:

Price projections for DRREDDY
Price projections for DRREDDY

Over time, analysts have gradually revised Dr. Reddy's Laboratories Limited's price projections downward. This suggests growing concerns about the company's ability to meet previous expectations, pointing to a more conservative outlook.

Recommendation changes over time:

Recommendations trend for DRREDDY
Recommendations trend for DRREDDY


The recent sell bias from analysts toward Dr. Reddy's Laboratories Limited suggests investors should exercise caution. Instead of acting on this bias alone, it's important to evaluate a broader range of market indicators to make more balanced and informed decisions regarding the stock's future prospects.