Dr. Reddy’s Shares Jump 6% Despite Profit Decline; Analysts Eye Future Trend

New Delhi: Shares of Dr. Reddy’s Laboratories surged nearly 6% in early trading on Thursday, rising to ₹1,225 on the BSE, pushing the company’s market capitalization to ₹1,02,195.71 crore. This comes despite the company reporting a 14% decline in consolidated net profit for the December quarter compared to the same period last year.

Quarterly Financial Highlights:

• Revenue from operations rose 4% to ₹8,727 crore.
• Gross profit fell 5% to ₹4,681 crore, with margins declining to 53.6% from 58.7% last year.
• The North American business experienced a 12% revenue drop to ₹2,964 crore, impacting overall profitability.
• Meanwhile, the European and Indian segments performed well, with European revenue up 20% to ₹1,448 crore.

Stock Market Performance:
Over the past month, Dr. Reddy’s shares have dropped 10%, but analysts remain optimistic. JM Financial has maintained a “Buy” rating with a target price of ₹1,545. The stock opened at ₹1,191.65, after closing at ₹1,155.50 in the previous session. Its 52-week high is ₹1,377.95, while the low is ₹1,025.90.

Market observers attribute the early trading surge to investor confidence in strong revenue growth in key segments, offsetting weakness in North America, and expect continued momentum depending on quarterly performance updates and global market trends.