The stock gained 9 per cent in two days after the pharma company reported better-than-expected revenue growth in March quarter (Q4FY22).
Dr Reddy's Q4 results: The revenue was up 15% to Rs 5,437 crore for the quarter under review
The company's Russian revenue was at Rs 686 crore for Q4FY22, a year-on-year growth of 70%.
The pharmaceutical giant may witness some impact due to its large exposure of the business to Russia, and CIS regions.
Tech Mahindra and Wipro have tumbled over 30 per cent, while Apollo Hospitals Enterprise and Dr. Reddy's Laboratories have plummeted 22 per cent so far in calendar year 2022 (CY22)
Apart from the 8 stocks among the Nifty50 index, a total of 26 stocks too dropped to their respective 52-week lows among the Nifty500 index.
US price erosion, India growth trends would be keenly tracked
The stock of the pharmaceutical company, which has a significant presence in the Russian market, has fallen below its previous low of Rs 4,135.90 touched on March 19, 2021
During the transition period, Dr Reddy's will continue to supply the product to Binnopharm Group to ensure availability in the market
Revenues stood at Rs 5,319.7 crore during the third quarter as compared with Rs 4,929.6 crore in the same period of 2020-21
In a Q&A, the chairman of Dr Reddy's Laboratories dwells, among other things, on the draft R&D policy and the first-ever Global Innovation Summit of the pharma sector held last November
Sun Pharma, Cipla, Natco, Dr Reddy's, Torrent Pharma, Aurobindo Pharma and Strides have launched a generic version of Molnupiravir in India post approval for emergency use authorisation from DCGI
Nifty should be held long with the stoploss of 16,650.
The underneath strength, preferably read as price action, has been able to hold ground around the major neckline supports for these stocks
For rerating, it needs sustained growth in India, recovery in US
The pharma index had taken a breather over the past three months after displaying relative out-performance during CY20-21.