Valuations turning attractive for Dr Reddy's as company outperforms sector

US price erosion, India growth trends would be keenly tracked

The Dr Reddy’s Laboratories stock is down 17 per cent since the start of CY22. The decline over this period was led by pricing headwinds in key markets, regulatory issues across multiple plant locations and its ability to sustain growth trajectory in focus markets. Near-term pressure on the stock is also due to the unfolding geopolitical situation and the impact on its sales to the affected regions.

Russia and Ukraine account for 10 per cent ($300 million) of the company’s overall revenues and near term growth may be hit due to the war. While receivables are $100 million, most of