Archive · 23 Jul 2026
Dr Reddy's Labs ADRs fall 9% after weak Q1 results
Dr Reddy's Laboratories' shares fell 9% after their quarterly results were weaker than expected.
Analysts are divided on whether the company will recover or continue to struggle.
The company's revenue and profits were lower than expected, and they are facing challenges with some of their products.
Some analysts think the company will do better in the future with new products and approvals, while others think the company will continue to struggle.
The stock's target prices range from Rs 1,040 to Rs 1,740.
Dr Reddy's Laboratories' ADRs fell 9.39% after weak Q1 results.
Revenue, Ebitda, and profit after tax missed consensus estimates by 2%, 23%, and 14%, respectively.
North America revenue declined 42% YoY due to the end of gRevlimid.
Domestic business grew 17% due to new launches, while NRT business declined 11% YoY.
Analysts have mixed views on the company's future prospects, with target prices ranging from Rs 1,040 to Rs 1,740.
- Who
- Dr Reddy's Laboratories Ltd
- What
- ADRs fell 9% after weak Q1 results
- When
- June quarter results
- Where
- Global markets, primarily US and India
- Why
- Missed Street margin estimates and earnings downgrades
Bullish Analysts
Bearish Analysts
Earnings and Margin Estimates
Bullish Analysts
Expect margin recovery and earnings growth due to new launches and regulatory approvals.
Bearish Analysts
Expect continued earnings downgrades and margin declines due to lack of positive catalysts.
Stock Valuation
Bullish Analysts
Maintain 'BUY' rating with a target price of INR 1,365.
Bearish Analysts
Suggest 'Sell' with a target price of INR 1,050.
- ADR Fall
- 9.39%
- Revenue Miss
- 2%
- Ebitda Miss
- 23%
- Profit After Tax Miss
- 14%
- Lowest Target Price
- Rs 1,040
- Highest Target Price
- Rs 1,740
- Current Ebitda Margin
- 13.3%
- Target Ebitda Margin
- 20% (ex-semaglutide)