Dr Reddy's Labs shines among pharma stocks, wins investor confidence

Cost-optimisation and growth strategy have helped Dr Reddy’s Laboratories (DRL) to buck the trend and win investor confidence. The Hyderabad-based company is an outlier among large pharmaceutical producers, having seen a jump in its stock price over the previous year.

While the BSE healthcare index and Nifty pharma index have declined on both a year-on-year and year-to-date basis, the DRL stock has gained 8.5-9 per cent in that period. With Divis Laboratories, it is the only stock in the Nifty pharma index which gained in the preceding months.

The prospect of improved profitability is seen by analysts as giving heft