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May 10, 2017

Dr Reddy's Lab Stock Trading At 52 Week Low,Can You Invest?

In this article, you can know whether it is the right time to invest on Dr. Reddy’s Laboratories (stock trading) at its 52 weeks low at Rs.2555.

I will be sharing my version of the fundamental analysis of this pharma stock, which should help you know how the company is doing in their profits, shareholding, shares pledged.

Followed by updates and FREE technical chart (SCROLL DOWN)

Dr Reddy's Laboratories Stock Trading At 52 Weeks Low

About Dr.Reddy’s Laboratories Limited

I will start with analyzing its 52 weeks high and 52 weeks low by referring below image which is a screen shot from

Dr Reddy's Laboratories Stock Price
Image Source & Credits: NSEINDIA.COM
 As per market specialists, most pharmaceutical company stocks witness movement in their stock prices, if any news comes in from the U.S.A. Food and Drug Administration (USFDA).

One among the drug maker, Dr. Reddy’s Laboratories has said to the bourses regarding the U.S.A. FDA’s examination.

The USFDA has issued eleven observations once the examination of company’s works in Hyderabad.

Most of the observations by U.S.A. agency is procedural in nature, that signals the requirement to boost individuals capabilities and strengthen documentation and laboratory systems.

Should we consider this for investment, below is my observation on this stock that will help you understand better about this stock.

Below I have shared details of its fundamentals and my recommendations as a retail investor whether it is the right time to buy this stock.

52 Week High And Low

Referring above image 52 Week high is at Rs.3689.85 on 20th July 2016 and 52 weeks low at Rs.2555.20 on 22nd March 2017.


Dr Reddy's Laboratories 2017 Results

Share Holding

Promoters Share Holding

In the above image, we can see that company’s shareholding is at 26.79% so ideally, I would prefer company that holds more than 40%

Promoters have pledged the company shares3.08% (135.77) so I would not buy a share that is already pledged by promoters.

Book Value

The book value of Dr.Reddy’s Laboratory is at 705.83 so when we compare present market at Rs. 2581 price this is 3.66 times more than its book value so I would not recommend at this price.


Dr.Reddy’s Laboratory is regular with its dividend payout and last paid of Rs.20.00 on 18th June 

Total Liabilities

Total liabilities has increased by 1373 crores in comparison with March 2015

Dr. Reddy Laboratories Technical Chart

Since this stock trading at Rs.2560 levels and looks attractive at this price for most of the investors who are new to stock market.

But after going through the details as explained above shows that the price is still costlier based on how this company is performing presently.

Followed by the news on USFDA and other updates from overseas markets.

So I would suggest you should either wait or identify another stock that will help you maximize your profit in short term.

Also, Nifty is trading at its all time I would prefer to wait for next set of action by this company so that you will get to understand whether stocks can raise from this levels.

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