Why is Dr Reddy's Labs falling/rising?

Sep 04 2025 10:11 PM IST
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As of 04-Sep, Dr Reddys Laboratories Ltd's stock price is 1,253.40, down 0.72%, and has underperformed its sector. Despite long-term growth potential, recent flat results and a low return on capital employed have led to declining investor participation and a year-to-date drop of 9.71%.
As of 04-Sep, Dr Reddys Laboratories Ltd is experiencing a decline in its stock price, currently at 1,253.40, reflecting a decrease of 9.15 points or 0.72%. The stock has underperformed its sector today by 0.57%, and its delivery volume has significantly dropped by 45.1% compared to the 5-day average, indicating falling investor participation. Over the past week, the stock has decreased by 0.59%, while it has shown a modest gain of 2.28% over the past month. Despite a long-term growth potential with a healthy annual net sales increase of 13.13% and a low debt-to-equity ratio, the stock's performance has been hindered by flat results in recent quarters and a low return on capital employed.

In the broader market context, the Sensex has increased by 0.80% over the past week, contrasting with Dr Reddy's decline, which suggests that the stock is not keeping pace with the overall market. Year-to-date, Dr Reddy's has fallen by 9.71%, while the Sensex has risen by 3.30%, further emphasizing its underperformance. Although the company has high institutional holdings at 63.1%, which typically indicates confidence in its fundamentals, the recent flat financial results and lower return on capital employed may be contributing to investor caution, leading to the stock's current downward trend.
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