Dr Reddys Stock Buy Hold or Sell Recommendation

RDY
 Stock
  

USD 53.90  0.28  0.52%   

Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Dr Reddys Laboratories is 'Strong Hold'. Macroaxis provides Dr Reddys buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding RDY positions. The advice algorithm takes into account all of Dr Reddys' available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Dr Reddys' buy-and-hold perspective. Additionally, take a look at Dr Reddys Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Dr Reddys and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Dr Reddys Laboratories.

Execute Dr Reddys Buy or Sell Advice

The Dr Reddys recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Dr Reddys Laboratories. Macroaxis does not own or have any residual interests in Dr Reddys Laboratories or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Dr Reddys' advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Dr ReddysBuy Dr Reddys
Strong Hold

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

OvervaluedDetails

Odds of Distress

Close to AverageDetails

Economic Sensitivity

Slowly supersedes the marketDetails

Analyst Consensus

HoldDetails

Reporting Quality (M-Score)

UnavailableDetails
For the selected time horizon Dr Reddys Laboratories has a Risk Adjusted Performance of 0.1137, Jensen Alpha of 0.1049, Total Risk Alpha of 0.0141, Sortino Ratio of 0.0324 and Treynor Ratio of 0.3417
Our trade advice module provides unbiased advice that can be used to complement current average analyst sentiment on Dr Reddys. Our trade advice engine provides an advice for the firm potential to grow from the perspective of an investor's risk tolerance and investing horizon. To make sure Dr Reddys Laboratories is not overpriced, please confirm all Dr Reddys Laboratories fundamentals, including its shares owned by institutions, debt to equity, current asset, as well as the relationship between the gross profit and number of employees . Given that Dr Reddys Laboratories has a price to earning of 23.21 X, we urge you to verify Dr Reddys market performance and probability of bankruptcy to ensure the company can sustain itself in the future given your latest risk tolerance and investing horizon.

Dr Reddys Trading Alerts and Improvement Suggestions

On 12th of August 2022 Dr Reddys paid $ 0.3784 per share dividend to its current shareholders
Latest headline from www.business-standard.com: US Stocks surge on easing inflation concerns - Business Standard

Dr Reddys current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Dr Reddys analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Dr Reddys analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price63.67
Target Median Price66.00
Target High Price68.00
Recommendation Mean2.00
Number Of Analyst Opinions3
Target Low Price57.00
Average Consensus Hold
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Dr Reddys Returns Distribution Density

The distribution of Dr Reddys' historical returns is an attempt to chart the future uncertainty of Dr Reddys' future price movements. The chart of the probability distribution of Dr Reddys stock daily returns describes the distribution of returns around its average expected value. We use Dr Reddys Laboratories price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Dr Reddys returns is essential to provide solid investment advice for Dr Reddys stock.
Mean Return0.15Value At Risk-2.51
Potential Upside2.74Standard Deviation1.73
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Dr Reddys historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Dr Reddys Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Dr Reddys or Healthcare sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Dr Reddys' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Dr Reddys stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.10
β
Beta against DOW0.42
σ
Overall volatility
1.76
Ir
Information ratio 0.0293

Dr Reddys Volatility Alert

Dr Reddys Laboratories has relatively low volatility with skewness of 0.75 and kurtosis of 3.16. However, we advise all investors to independently investigate Dr Reddys Laboratories to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Dr Reddys' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Dr Reddys' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Dr Reddys Implied Volatility

Dr Reddys' implied volatility" href="/stock-options/RDY/Dr-Reddys-Laboratories">Dr Reddys' implied volatility exposes the market's sentiment of Dr Reddys Laboratories stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Dr Reddys' implied volatility" href="/stock-options/RDY/Dr-Reddys-Laboratories">Dr Reddys' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Dr Reddys stock will not fluctuate a lot when Dr Reddys' options" href="/stock-options/RDY/Dr-Reddys-Laboratories">Dr Reddys' options are near their expiration.

Dr Reddys Fundamentals Vs Peers

Comparing Dr Reddys' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Dr Reddys' direct or indirect competition across all of the common fundamentals between Dr Reddys and the related equities. This way, we can detect undervalued stocks with similar characteristics as Dr Reddys or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Dr Reddys' fundamental indicators could also be used in its relative valuation, which is a method of valuing Dr Reddys by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Dr Reddys to competition
FundamentalsDr ReddysPeer Average
Return On Equity15.71 %(0.31) %
Return On Asset7.81 %(0.14) %
Profit Margin13.68 %(1.27) %
Operating Margin21.63 %(5.51) %
Current Valuation(1.13 B)16.62 B
Shares Outstanding165.98 M571.82 M
Shares Owned by Institutions10.39 %39.21 %
Number of Shares Shorted1.3 M4.71 M
Price to Earning23.21 X28.72 X
Price to Book0.04 X9.51 X
Price to Sales0.04 X11.42 X
Revenue217.35 B9.43 B
Gross Profit113.84 B27.38 B
EBITDA47 B3.9 B
Net Income29.74 B570.98 M
Cash and Equivalents34.62 B2.7 B
Cash per Share208.58 X5.01 X
Total Debt24.67 B5.32 B
Debt to Equity0.12 %48.70 %
Current Ratio1.98 X2.16 X
Cash Flow from Operations38.21 B971.22 M
Short Ratio6.16 X4.00 X
Earnings Per Share2.28 X3.12 X
Price to Earnings To Growth0.68 X4.89 X
Number of Employees24.8 K18.84 K
Beta0.23-0.15
Market Capitalization8.78 B19.03 B
Total Asset3.14 B29.47 B
Retained Earnings1.5 B9.33 B
Working Capital831 M1.48 B
Current Asset1.81 B9.34 B
Current Liabilities976 M7.9 B
Five Year Return0.72 %

Dr Reddys Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Dr Reddys . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
Accumulation Distribution28.27
Daily Balance Of Power1.555556
Rate Of Daily Change1.01
Day Median Price53.81
Day Typical Price53.84
Market Facilitation Index0.0
Price Action Indicator0.23

About Dr Reddys Buy or Sell Advice

When is the right time to buy or sell Dr Reddys Laboratories? Buying financial instruments such as Dr Reddys Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Dr Reddys investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Dr Reddys in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Large Value Thematic Idea Now

Large Value
Large Value Theme
Funds or Etfs that invest in the undervalued stocks of large-sized companies. The Large Value theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Large Value Theme or any other thematic opportunities.
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Additionally, take a look at Dr Reddys Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Dr Reddys Laboratories information on this page should be used as a complementary analysis to other Dr Reddys' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Stock Screener module to find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

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Is Dr Reddys' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Dr Reddys. If investors know Dr Reddys will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Dr Reddys listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
1.08
Market Capitalization
8.9 B
Quarterly Revenue Growth YOY
0.06
Return On Assets
0.0781
Return On Equity
0.16
The market value of Dr Reddys Laboratories is measured differently than its book value, which is the value of Dr Reddys that is recorded on the company's balance sheet. Investors also form their own opinion of Dr Reddys' value that differs from its market value or its book value, called intrinsic value, which is Dr Reddys' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Dr Reddys' market value can be influenced by many factors that don't directly affect Dr Reddys' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Dr Reddys' value and its price as these two are different measures arrived at by different means. Investors typically determine Dr Reddys value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Dr Reddys' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.