Dr. Reddy’s Laboratories (NYSE:RDY) Posts Quarterly Earnings Results, Hits Expectations

Dr. Reddy’s Laboratories (NYSE:RDY) announced its quarterly earnings results on Wednesday. The company reported $0.16 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.16, Zacks reports. Dr. Reddy’s Laboratories had a return on equity of 17.13% and a net margin of 17.14%.

Here are the key takeaways from Dr. Reddy’s Laboratories’ conference call:

• Company reported a resilient Q3 with 4.4% revenue growth, reported EBITDA margin of 23.5% (24.8% adjusted for a one?time new labor?code provision) and a net cash surplus of $342 million, though gross margins were hit by lower lenalidomide sales and generic price erosion.
• Semaglutide cleared India approval and is targeted for an India launch on March 21, with a Canada review response submitted (goal date by May) and filings planned across ~80 markets, supporting a potentially material new revenue stream.
• Biologics pipeline progress includes a December BLA filing for the IV presentation of Abatacept and planned global launches (Europe/US/Japan/Canada), positioning the company to commercialize a high?value biosimilar if approvals proceed on schedule.
• Regulatory and manufacturing headwinds remain: US FDA issued a Form 483 (five observations) at one Srikakulam facility and a post?application action letter for Bachupally (rituximab), while partner?related CRLs (e.g., Ustekinumab/Denosumab via partners) introduce timing uncertainty for some biosimilar launches.
• Branded franchises and M&A are accelerating growth — India and emerging markets delivered double?digit expansion, the acquired nicotine?replacement therapy business is 85% integrated and outperforming expectations, and management continues targeted BD to augment organic growth.

Dr. Reddy’s Laboratories Trading Up 3.1%

Dr. Reddy’s Laboratories stock traded up $0.40 during trading hours on Wednesday, reaching $13.34. 831,440 shares of the company’s stock were exchanged, compared to its average volume of 1,393,453. The firm’s 50 day simple moving average is $13.85 and its 200 day simple moving average is $14.11. Dr. Reddy’s Laboratories has a twelve month low of $12.26 and a twelve month high of $16.17. The company has a quick ratio of 1.35, a current ratio of 1.85 and a debt-to-equity ratio of 0.03. The firm has a market capitalization of $11.13 billion, a PE ratio of 16.45, a PEG ratio of 6.36 and a beta of 0.37.

Analysts Set New Price Targets

Separately, Weiss Ratings cut shares of Dr. Reddy’s Laboratories from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $16.90.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in RDY. Vise Technologies Inc. grew its position in Dr. Reddy’s Laboratories by 6.0% in the 3rd quarter. Vise Technologies Inc. now owns 20,074 shares of the company’s stock worth $281,000 after purchasing an additional 1,128 shares in the last quarter. EverSource Wealth Advisors LLC grew its holdings in shares of Dr. Reddy’s Laboratories by 71.7% in the second quarter. EverSource Wealth Advisors LLC now owns 3,100 shares of the company’s stock valued at $47,000 after acquiring an additional 1,294 shares in the last quarter. Aquatic Capital Management LLC increased its position in shares of Dr. Reddy’s Laboratories by 2.3% during the third quarter. Aquatic Capital Management LLC now owns 68,168 shares of the company’s stock valued at $953,000 after acquiring an additional 1,536 shares during the last quarter. Van ECK Associates Corp increased its position in shares of Dr. Reddy’s Laboratories by 25.2% during the third quarter. Van ECK Associates Corp now owns 9,355 shares of the company’s stock valued at $131,000 after acquiring an additional 1,881 shares during the last quarter. Finally, Modern Wealth Management LLC lifted its holdings in Dr. Reddy’s Laboratories by 12.6% during the second quarter. Modern Wealth Management LLC now owns 17,785 shares of the company’s stock worth $267,000 after acquiring an additional 1,996 shares during the period. Institutional investors own 3.85% of the company’s stock.

About Dr. Reddy’s Laboratories

Dr. Reddy’s Laboratories Ltd. is an India?based multinational pharmaceutical company that develops, manufactures and markets a wide range of pharmaceutical products and services. Established in 1984 by the late Dr. Kallam Anji Reddy, the company has grown into a diversified healthcare enterprise offering generic and proprietary medicines, active pharmaceutical ingredients (APIs), biosimilars and custom research and manufacturing services (CRAMS). Its portfolio spans therapeutic areas such as oncology, cardiovascular care, dermatology, gastroenterology and pain management.

The company’s core activities include the development and commercialization of cost?effective generic treatments for branded drugs that have lost patent protection, along with in?house research into innovative molecule development.