DRREDDY - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 4.0
| Stock Code | DRREDDY | Market Cap | 1,10,417 Cr. | Current Price | 1,323 ₹ | High / Low | 1,380 ₹ |
| Stock P/E | 23.8 | Book Value | 378 ₹ | Dividend Yield | 0.60 % | ROCE | 25.8 % |
| ROE | 20.3 % | Face Value | 1.00 ₹ | DMA 50 | 1,267 ₹ | DMA 200 | 1,257 ₹ |
| Chg in FII Hold | -1.20 % | Chg in DII Hold | 0.28 % | PAT Qtr | 90.6 Cr. | PAT Prev Qtr | 387 Cr. |
| RSI | 59.5 | MACD | 18.8 | Volume | 12,89,421 | Avg Vol 1Wk | 26,07,976 |
| Low price | 1,121 ₹ | High price | 1,380 ₹ | PEG Ratio | 0.49 | Debt to equity | 0.13 |
| 52w Index | 78.0 % | Qtr Profit Var | -89.3 % | EPS | 55.6 ₹ | Industry PE | 30.1 |
Analysis: Dr. Reddy’s Laboratories (DRREDDY) shows strong fundamentals with ROCE (25.8%) and ROE (20.3%), supported by low debt-to-equity (0.13). Current price (1,323 ₹) is above both DMA 50 (1,267 ₹) and DMA 200 (1,257 ₹), confirming bullish momentum. RSI at 59.5 suggests mildly overbought conditions, while MACD (18.8) supports positive strength. Quarterly PAT dropped sharply (90.6 Cr. vs 387 Cr.), with profit variation at -89.3%, raising caution. Valuation is reasonable with P/E of 23.8 compared to industry PE of 30.1, and PEG ratio of 0.49 indicates strong growth potential. EPS of 55.6 ₹ adds earnings visibility, though reduced FII interest (-1.20%) is a concern.
Optimal Entry Price: Around 1,300–1,310 ₹ (near DMA support).
Exit Strategy if Holding: Consider booking profits near 1,360–1,380 ₹ unless momentum sustains above 1,380 ₹ resistance.
✅ Positive
- Strong ROCE (25.8%) and ROE (20.3%).
- Low debt-to-equity ratio (0.13) ensures financial stability.
- Valuation attractive with P/E (23.8) below industry average (30.1).
- DII holdings increased (+0.28%), showing domestic investor confidence.
⚠️ Limitation
- Quarterly PAT decline (90.6 Cr. vs 387 Cr.) with -89.3% variation.
- FII holdings decreased (-1.20%), showing reduced foreign interest.
- RSI at 59.5 indicates mildly overbought conditions.
📰 Company Negative News
- No major negative news reported, but sharp profit decline and reduced foreign interest are concerns.
🌟 Company Positive News
- Strong efficiency metrics (ROCE and ROE).
- Valuation attractive compared to industry peers.
- Domestic institutional investors increased their stake.
🏭 Industry
- Industry P/E at 30.1 suggests Dr. Reddy’s trades at a discount.
- Pharmaceutical sector remains resilient with global demand for generics and APIs.
📌 Conclusion
Dr. Reddy’s Laboratories is a good candidate for swing trading. Entry around 1,300–1,310 ₹ offers a favorable risk-reward setup, while exit near 1,360–1,380 ₹ is advisable unless momentum sustains above 1,380 ₹. Strong fundamentals and attractive valuation are positives, but sharp profit decline and reduced foreign interest warrant cautious optimism.
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