Stocks in news: Lacklustre trade in Dr Reddy's stock ahead of Q2 results today; no fresh buying move, say analysts

Lacklustre trading was seen Dr Reddy's Laboratories shares ahead of its quarterly earnings announcements, later today. The stock was trading at Rs 4,475.10 on the NSE around 12:45 am and were down by Rs 16.10 or 0.36 per cent from the Thursday closing price, tracking movement of the pharma sector. Nifty Pharma was one of the top laggards today and was down 0.79 per cent around this time.

The stock has seen an upward move over the past four trading sessions. 

The stock was trading with moderate volumes.  

 Source: NSE

According to street's estimates the Q2FY23 revenues are expected to come down 3 per cent at Rs 5587cr vs 5763cr reported during the corresponding quarter in the year ago period. The Net profit for the July-September quarter is seen going down 27 per cent at Rs 721 cr as against Rs 992 cr reported in Q2 of FY22.

EBITDA is seen at Rs 1219 cr vs 1336 cr, down 9 per cent YoY. Meanwhile, margins are also expected to see a percentage point fall to 22 per cent. 

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The domestic growth is expected to remain moderate. US business is expected to grow by 2 per cent YoY. 

The stock has given 3,38 per cent returns over the last three months.

Analyst Sandeep Jain recommends a 'Hold' on Dr Reddy's shares calling it a good stock. The stock has gained over the past 4 trading sessions and hence no fresh buying position should be made, he said. His suggestion to investors is to wait for the results.

The Tradeswift Director is positive on the overall pharma sector calling it an underperformer amongst its peers. 

Echoing a similar stance technical analyst Nilesh Jain suggests an avoid in this scrip. The Centrum Broking analyst said that the stock has moved significantly in last few trading sessions. He puts a stop loss at Rs 4330. The immediate target is Rs 4600 followed by Rs 4800. A breakout will come once it breaches Rs 4600 level, Jain said. 

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(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)