Dr. Reddy’s Laboratories Ltd. ADR (RDY) Shares Rise Despite Market Challenges

Dr. Reddy’s Laboratories Ltd. ADR (NYSE: RDY)’s stock price has plunge by 1.22relation to previous closing price of 13.93. Nevertheless, the company has seen a 4.37% surge in its stock price over the last five trading sessions. zacks.com reported 2025-05-12 that Dr. Reddy’s stock is up on encouraging fiscal fourth-quarter 2025 results, wherein both earnings and revenues beat estimates, driven by higher global generic sales.

Is It Worth Investing in Dr. Reddy’s Laboratories Ltd. ADR (NYSE: RDY) Right Now?

Dr. Reddy’s Laboratories Ltd. ADR (NYSE: RDY) has a higher price-to-earnings ratio of 17.60x compared to its average ratio. RDY has 36-month beta value of 0.31. Analysts have mixed views on the stock, with 1 analysts rating it as a “buy,” 0 as “overweight,” 2 as “hold,” and 1 as “sell.”

The public float for RDY is 833.09M, and currently, short sellers hold a 1.79% ratio of that float. The average trading volume of RDY on May 14, 2025 was 2.19M shares.

RDY’s Market Performance

RDY’s stock has seen a 4.37% increase for the week, with a 6.66% rise in the past month and a 2.10% gain in the past quarter. The volatility ratio for the week is 2.19%, and the volatility levels for the past 30 days are at 1.58% for Dr. Reddy’s Laboratories Ltd. ADR The simple moving average for the past 20 days is 2.70% for RDY’s stock, with a -4.09% simple moving average for the past 200 days.

RDY Trading at 5.84% from the 50-Day Moving Average

After a stumble in the market that brought RDY to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -16.53% of loss for the given period.

Volatility was left at 1.58%, however, over the last 30 days, the volatility rate increased by 2.19%, as shares surge +6.42% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +10.50% upper at present.

During the last 5 trading sessions, RDY rose by +4.37%, which changed the moving average for the period of 200-days by -12.79% in comparison to the 20-day moving average, which settled at $13.73. In addition, Dr. Reddy’s Laboratories Ltd. ADR saw -10.70% in overturn over a single year, with a tendency to cut further losses.

Insider Trading

Reports are indicating that there were more than several insider trading activities at RDY starting from Israeli Erez, who proposed sale 65,500 shares at the price of $82.29 back on Jul 29 ’24. After this action, Israeli Erez now owns shares of Dr. Reddy’s Laboratories Ltd. ADR, valued at $5,390,000 using the latest closing price.

Stock Fundamentals for RDY

Current profitability levels for the company are sitting at:

  • 0.22 for the present operating margin
  • 0.57 for the gross margin

The net margin for Dr. Reddy’s Laboratories Ltd. ADR stands at 0.17. The total capital return value is set at 0.2. Equity return is now at value 18.36, with 12.81 for asset returns.

Based on Dr. Reddy’s Laboratories Ltd. ADR (RDY), the company’s capital structure generated 0.12 points at debt to capital in total, while cash flow to debt ratio is standing at 0.99. The debt to equity ratio resting at 0.14. The interest coverage ratio of the stock is 32.89.

Currently, EBITDA for the company is 88.42 billion with net debt to EBITDA at 0.35. When we switch over and look at the enterprise to sales, we see a ratio of 3.19. The receivables turnover for the company is 3.6for trailing twelve months and the total asset turnover is 0.66. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.92.

Conclusion

To put it simply, Dr. Reddy’s Laboratories Ltd. ADR (RDY) has had a better performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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