Dr. Reddy’s Laboratories: Strong Growth, Rising Capex, But Is the Market Missing the Story?

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Dr. Reddy’s equity research

🔬 Dr. Reddy’s Laboratories Ltd is showing all the right signs of aggressive expansion.
Despite a decline in EBITDA margins this year, the company has:

✔️ Maintained steady sales growth
✔️ Increased borrowings (₹2,002 Cr → ₹4,677 Cr) to fund capex
✔️ Grown its fixed assets from ₹10,426 Cr to ₹18,293 Cr — a clear sign of future capacity expansion
✔️ Managed operating expenses well

⚠️ However, rising trade receivables remain a concern — a key area where management needs to focus.

📉 Interestingly, the stock’s price CAGR is lagging behind the company’s strong compound sales and profit growth.
➡️ This could be an opportunity — the stock appears undervalued at current levels.

💡 Is the market underestimating Dr. Reddy’s long-term growth story?

Let me know your thoughts in the comments! 👇

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