Stock To Buy: Sumeet Bagadia, Executive Director at Choice Broking, has recommended a Buy call on Dr Reddy's Laboratories amid a bullish setup.
Dr Reddy's Laboratories is an Indian multinational pharmaceutical company based in Hyderabad, with the US headquarters in East Brunswick, New Jersey.
He said that Dr Reddy's stock is exhibiting a strong bullish reversal on the weekly chart, rebounding sharply after taking support near the lower band of the channel, which is close to the 200-day EMA, and showing a strong rise from lower levels indicating solid buying interest and demand-based recovery.
Dr Reddy Share Price Target
A bullish engulfing candlestick formation near the key support zone further strengthens the possibility of a trend reversal. The stock has also broken out of the falling trendline channel, signaling a clear shift in sentiment and a bullish structural reversal, with potential upside targets around Rs 1375 and Rs 1465 in the medium term.
Currently trading near Rs 1270, the price action is supported by steady volumes, reflecting healthy participation and gradual accumulation.
Technically, the stock remains strong as it trades comfortably above its key EMAs, all trending upward and reinforcing the broader bullish momentum. The weekly RSI at 53.73 also supports the positive bias, indicating strengthening momentum without entering the overbought zone.
Given the favorable chart structure and supportive technical indicators, long positions can be considered near 1270, while dips towards 1245 may act as accumulation opportunities.
Positional support is placed at 1165; a breach below this level could pose downside risk, but as long as the stock sustains above this zone, the broader bias remains positive with a favorable risk–reward setup for a potential breakout-driven rally.
Dr Reddy Q3 Results
In Q3 FY2026, Dr Reddy's Laboratories said its consolidated profit after tax declined 14% year-on-year to Rs 1,210 crore, hit by lower sales in the US market. The Hyderabad-based drug major posted a profit after tax (PAT) of Rs 1,413 crore in the October-December quarter of the last fiscal.
Revenue increased to Rs 8,727 crore during the period under review as compared to Rs 8,357 crore in the third quarter of last fiscal.
The drug maker said its North America revenue in the third quarter stood at Rs 2,964 crore, a dip of 12% year-on-year. India sales rose 19% to ₹1,603 crore in the third quarter, as against Rs 1,346 crore in the year-ago period. Europe and emerging markets also witnessed revenue growth during the period under review.
