Zacks Research Analysts Raise Earnings Estimates for RDY

Dr. Reddy’s Laboratories Ltd (NYSE:RDY) – Analysts at Zacks Research increased their Q3 2027 earnings estimates for shares of Dr. Reddy’s Laboratories in a research note issued to investors on Monday, August 10th. Zacks Research analyst Team now forecasts that the company will post earnings of $0.15 per share for the quarter, up from their prior estimate of $0.12. The consensus estimate for Dr. Reddy’s Laboratories’ current full-year earnings is $0.45 per share. Zacks Research also issued estimates for Dr. Reddy’s Laboratories’ Q4 2027 earnings at $0.06 EPS.

Dr. Reddy’s Laboratories (NYSE:RDY) last posted its quarterly earnings data on Thursday, July 23rd. The company reported $0.06 earnings per share for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.03). The firm had revenue of $850.26 million during the quarter, compared to analysts’ expectations of $850.56 million. Dr. Reddy’s Laboratories had a return on equity of 9.49% and a net margin of 10.15%.

Other equities research analysts also recently issued reports about the company. The Goldman Sachs Group downgraded Dr. Reddy’s Laboratories from a “neutral” rating to a “sell” rating in a report on Thursday, April 23rd. Wall Street Zen cut Dr. Reddy’s Laboratories from a “hold” rating to a “sell” rating in a report on Saturday, July 25th. Finally, Weiss Ratings downgraded Dr. Reddy’s Laboratories from a “hold (c)” rating to a “hold (c-)” rating in a research report on Thursday, July 23rd. Two equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Reduce”.

Dr. Reddy’s Laboratories Stock Up 2.6%

Shares of NYSE:RDY opened at $12.46 on Wednesday. The firm has a market capitalization of $10.40 billion, a PE ratio of 28.33, a price-to-earnings-growth ratio of 2.55 and a beta of 0.29. The business has a 50 day simple moving average of $13.13 and a two-hundred day simple moving average of $13.52. Dr. Reddy’s Laboratories has a 1 year low of $11.36 and a 1 year high of $15.67. The company has a debt-to-equity ratio of 0.03, a current ratio of 1.90 and a quick ratio of 1.39.

Institutional Investors Weigh In On Dr. Reddy’s Laboratories

A number of institutional investors and hedge funds have recently bought and sold shares of RDY. Morgan Stanley raised its holdings in shares of Dr. Reddy’s Laboratories by 41.2% in the fourth quarter. Morgan Stanley now owns 8,926,051 shares of the company’s stock valued at $125,322,000 after acquiring an additional 2,603,897 shares in the last quarter. Aikya Investment Management Ltd grew its holdings in Dr. Reddy’s Laboratories by 9.3% during the 4th quarter. Aikya Investment Management Ltd now owns 7,338,525 shares of the company’s stock worth $103,033,000 after acquiring an additional 623,518 shares in the last quarter. Marshall Wace LLP grew its holdings in Dr. Reddy’s Laboratories by 1,699.4% during the 4th quarter. Marshall Wace LLP now owns 516,256 shares of the company’s stock worth $7,248,000 after acquiring an additional 487,565 shares in the last quarter. Royal Bank of Canada increased its position in Dr. Reddy’s Laboratories by 4.6% during the 1st quarter. Royal Bank of Canada now owns 9,984,082 shares of the company’s stock valued at $138,293,000 after purchasing an additional 434,805 shares during the period. Finally, Bessemer Group Inc. increased its position in Dr. Reddy’s Laboratories by 28.4% during the 1st quarter. Bessemer Group Inc. now owns 1,823,285 shares of the company’s stock valued at $25,253,000 after purchasing an additional 403,219 shares during the period. 3.85% of the stock is owned by institutional investors.

Dr. Reddy’s Laboratories News Summary

Here are the key news stories impacting Dr. Reddy’s Laboratories this week:

• Positive Sentiment: Zacks continues to project positive earnings for Dr. Reddy’s, including EPS estimates of $0.43 for FY2027, $0.50 for FY2028 and $0.61 for FY2029. However, these estimates are below its previous forecasts.
• Neutral Sentiment: The analyst’s current full-year consensus reference remains $0.47 per share. The revisions focus mainly on future quarters and fiscal years rather than a new company announcement or operating update.
• Negative Sentiment: Zacks cut its FY2027 EPS forecast to $0.43 from $0.51 and its FY2028 forecast to $0.50 from $0.60. It also reduced FY2029 EPS to $0.61 from $0.66.
• Negative Sentiment: Quarterly estimates were lowered broadly: Q2 FY2027 EPS to $0.16 from $0.17; Q1 FY2028 to $0.11 from $0.17; Q2 FY2028 to $0.14 from $0.15; Q3 FY2028 to $0.13 from $0.15; Q4 FY2028 to $0.11 from $0.13; and Q1 FY2029 to $0.14 from $0.18.
• Negative Sentiment: The cuts suggest analysts see weaker earnings momentum than previously expected, which could limit valuation support for RDY. The outlook is also notable because the company’s latest reported quarterly EPS previously missed analysts’ expectations.

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.