Is Dr Reddys Stock a Good Investment?
Dr Reddys Investment Advice | RDY |
- Examine Dr Reddys' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Dr Reddys' leadership team and their track record. Good management can help Dr Reddys navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Pharmaceuticals space and any emerging trends that could impact Dr Reddys' business and its evolving consumer preferences.
- Compare Dr Reddys' performance and market position to its competitors. Analyze how Dr Reddys is positioned in terms of product offerings, innovation, and market share.
- Check if Dr Reddys pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Dr Reddys' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Dr Reddys Laboratories stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Dr Reddys Laboratories is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Moves indifferently to market moves | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine Dr Reddys Stock
Researching Dr Reddys' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 15.0% of the company shares are owned by institutional investors. The book value of Dr Reddys was at this time reported as 381.36. The company last dividend was issued on the 30th of July 2024. Dr Reddys Laboratories had 5:1 split on the 5th of November 2024.
To determine if Dr Reddys is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Dr Reddys' research are outlined below:
| Dr Reddys generated a negative expected return over the last 90 days | |
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Dr Reddys Quarterly Liabilities And Stockholders Equity |
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Dr Reddys uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Dr Reddys Laboratories. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Dr Reddys' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 31st of January 2024 Upcoming Quarterly Report | View | |
| 8th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 8th of May 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of March 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Dr Reddys' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Dr Reddys' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2005-07-26 | 2005-06-30 | 0.06 | 0.05 | -0.01 | 16 | ||
2019-05-17 | 2019-03-31 | 0.33 | 0.3725 | 0.0425 | 12 | ||
2020-07-29 | 2020-06-30 | 0.52 | 0.46 | -0.06 | 11 | ||
2013-05-14 | 2013-03-31 | 0.54 | 0.6 | 0.06 | 11 | ||
2018-05-22 | 2018-03-31 | 0.33 | 0.2671 | -0.0629 | 19 | ||
2013-07-30 | 2013-06-30 | 0.43 | 0.36 | -0.07 | 16 | ||
2005-10-29 | 2005-09-30 | 0.06 | 0.13 | 0.07 | 116 | ||
2015-01-29 | 2014-12-31 | 0.45 | 0.53 | 0.08 | 17 |
Know Dr Reddys' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Dr Reddys is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Dr Reddys Laboratories backward and forwards among themselves. Dr Reddys' institutional investor refers to the entity that pools money to purchase Dr Reddys' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Jpmorgan Chase & Co | 2024-12-31 | 2.8 M | Fisher Asset Management, Llc | 2024-12-31 | 2.5 M | Gqg Partners Llc | 2024-12-31 | 2 M | Bank Of America Corp | 2024-12-31 | 1.9 M | Jane Street Group Llc | 2024-12-31 | 1.5 M | Northern Trust Corp | 2024-12-31 | 1.4 M | Goldman Sachs Group Inc | 2024-12-31 | 1.2 M | Geode Capital Management, Llc | 2024-12-31 | 1.2 M | Old Mission Capital Llc. | 2024-12-31 | 1.1 M | Robeco Institutional Asset Management Bv | 2024-12-31 | 11.4 M | Morgan Stanley - Brokerage Accounts | 2024-12-31 | 11.3 M |
Dr Reddys' market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 11.5 B.Market Cap |
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Dr Reddys' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.18 | 0.11 | |
| Return On Capital Employed | 0.21 | 0.11 | |
| Return On Assets | 0.13 | 0.07 | |
| Return On Equity | 0.18 | 0.10 |
Determining Dr Reddys' profitability involves analyzing its financial statements and using various financial metrics to determine if Dr Reddys is a good buy. For example, gross profit margin measures Dr Reddys' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Dr Reddys' profitability and make more informed investment decisions.
Please note, the imprecision that can be found in Dr Reddys' accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Dr Reddys Laboratories. Check Dr Reddys' Beneish M Score to see the likelihood of Dr Reddys' management manipulating its earnings.
Evaluate Dr Reddys' management efficiency
Dr Reddys Laboratories has Return on Asset of 0.1032 % which means that on every $100 spent on assets, it made $0.1032 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.1847 %, implying that it generated $0.1847 on every 100 dollars invested. Dr Reddys' management efficiency ratios could be used to measure how well Dr Reddys manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to drop to 0.11 in 2025. Return On Capital Employed is likely to drop to 0.11 in 2025. At this time, Dr Reddys' Total Assets are fairly stable compared to the past year. Other Assets is likely to rise to about 8.6 B in 2025, whereas Intangible Assets are likely to drop slightly above 24.7 B in 2025.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 1.5 K | 1.6 K | |
| Tangible Book Value Per Share | 1.3 K | 1.4 K | |
| Enterprise Value Over EBITDA | 2.25 | 2.24 | |
| Price Book Value Ratio | 0.85 | 0.86 | |
| Enterprise Value Multiple | 2.25 | 2.24 | |
| Price Fair Value | 0.85 | 0.86 | |
| Enterprise Value | 199 B | 208.9 B |
Management at Dr Reddys Laboratories focuses on leveraging technology and optimizing operations. We evaluate the impact of these focuses on the company's financial health and stock performance.
Basic technical analysis of RDY Stock
As of the 26th of March, Dr Reddys owns the Information Ratio of (0.07), market risk adjusted performance of (0.52), and Standard Deviation of 1.6. In respect to fundamental indicators, the technical analysis model provides you with a way to check possible technical drivers of Dr Reddys Laboratories, as well as the relationship between them.Dr Reddys' Outstanding Corporate Bonds
Dr Reddys issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Dr Reddys Laboratories uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most RDY bonds can be classified according to their maturity, which is the date when Dr Reddys Laboratories has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
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Understand Dr Reddys' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Dr Reddys' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.05) | |||
| Market Risk Adjusted Performance | (0.52) | |||
| Mean Deviation | 1.15 | |||
| Coefficient Of Variation | (1,621) | |||
| Standard Deviation | 1.6 | |||
| Variance | 2.57 | |||
| Information Ratio | (0.07) | |||
| Jensen Alpha | (0.11) | |||
| Total Risk Alpha | (0.11) | |||
| Treynor Ratio | (0.53) | |||
| Maximum Drawdown | 10.15 | |||
| Value At Risk | (2.79) | |||
| Potential Upside | 1.96 | |||
| Skewness | (0.55) | |||
| Kurtosis | 3.07 |
| Risk Adjusted Performance | (0.05) | |||
| Market Risk Adjusted Performance | (0.52) | |||
| Mean Deviation | 1.15 | |||
| Coefficient Of Variation | (1,621) | |||
| Standard Deviation | 1.6 | |||
| Variance | 2.57 | |||
| Information Ratio | (0.07) | |||
| Jensen Alpha | (0.11) | |||
| Total Risk Alpha | (0.11) | |||
| Treynor Ratio | (0.53) | |||
| Maximum Drawdown | 10.15 | |||
| Value At Risk | (2.79) | |||
| Potential Upside | 1.96 | |||
| Skewness | (0.55) | |||
| Kurtosis | 3.07 |
Consider Dr Reddys' intraday indicators
Dr Reddys intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Dr Reddys stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 26436.77 | |||
| Daily Balance Of Power | (1.73) | |||
| Rate Of Daily Change | 0.98 | |||
| Day Median Price | 13.43 | |||
| Day Typical Price | 13.44 | |||
| Price Action Indicator | (0.12) | |||
| Period Momentum Indicator | (0.26) | |||
| Relative Strength Index | 48.25 |
Dr Reddys Corporate Filings
6K | 24th of March 2025 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges. | ViewVerify |
RDY Stock media impact
Far too much social signal, news, headlines, and media speculation about Dr Reddys that are available to investors today. That information is available publicly through RDY media outlets and privately through word of mouth or via RDY internal channels. However, regardless of the origin, that massive amount of RDY data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Dr Reddys news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Dr Reddys relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Dr Reddys' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Dr Reddys alpha.
Dr Reddys Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Dr Reddys can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Dr Reddys Laboratories Historical Investor Sentiment
Investor biases related to Dr Reddys' public news can be used to forecast risks associated with an investment in RDY. The trend in average sentiment can be used to explain how an investor holding RDY can time the market purely based on public headlines and social activities around Dr Reddys Laboratories. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Dr Reddys' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Dr Reddys and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Dr Reddys news discussions. The higher the estimate score, the more favorable the investor's outlook on Dr Reddys.
Dr Reddys Corporate Directors
| Leo Puri | Non-Executive Independent Director | Profile | |
| Arunabha RayChaudhuri | Head Director | Profile | |
| Prasad Menon | Lead Non-Executive Independent Director | Profile | |
| Shikha Sharma | Non-Executive Independent Director | Profile |
Additional Tools for RDY Stock Analysis
When running Dr Reddys' price analysis, check to measure Dr Reddys' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Dr Reddys is operating at the current time. Most of Dr Reddys' value examination focuses on studying past and present price action to predict the probability of Dr Reddys' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Dr Reddys' price. Additionally, you may evaluate how the addition of Dr Reddys to your portfolios can decrease your overall portfolio volatility.