Wall Street firms have adjusted their ratings on Dr. Reddy’s Laboratories following a mixed quarterly report, with some upgrading to ‘hold’ while overall sentiment remains cautious amid fluctuating investor interest.
Wall Street Zen has raised Dr. Reddy’s Laboratories from “sell” to “hold”, a modest shift that leaves the Indian drugmaker with a cautious Street view. MarketBeat said Weiss Ratings moved the shares the other way last month, trimming its view to “hold (c-)”, while the overall consensus remains “reduce” with just one hold and one sell rating.
The latest note comes after a mixed quarterly update. Dr. Reddy’s reported earnings of $0.06 a share for the quarter ended July 23, below expectations for $0.09, even as revenue of $850.26 million was broadly in line with forecasts. The company posted a net margin of 10.15% and a return on equity of 9.49%, and analysts surveyed by MarketBeat expect full-year earnings of $0.45 a share.
The stock opened at $12.17 on Friday, close to its 52-week low of $11.36 and well below its high of $15.67. With a market value of about $10.16 billion, the shares trade at a price-to-earnings ratio of 27.66 and a price/earnings-to-growth ratio of 2.55. The company’s balance sheet remains relatively light on leverage, with a debt-to-equity ratio of 0.03.
Investor interest has also continued to shift. Invesco, First Trust Advisors, Sei Investments and Quantinno Capital Management all lifted their holdings in the second quarter, according to the filings cited by MarketBeat. Dr. Reddy’s, founded in 1984 by the late Kallam Anji Reddy, develops generic medicines, biosimilars, active pharmaceutical ingredients and contract research and manufacturing services across areas including oncology, cardiovascular care and dermatology.
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