Is Dr Reddy’s stock gaining momentum?

The pharma stock which was witnessing a serious downfall in the last couple of months, looks like it’s gaining momentum. The shares of the company in the last 5 days from June 27 to July 1 have gained over 9 per cent. The company in the last couple of months was constantly in the news, and was facing the wrath of FDA, which attributed to the downfall of the company.

But in the last couple of trading sessions the shares have gained. The company on June 28, had bought back nearly 5.08 million equity shares for Rs 1,569.41 crore as part of a ‘share buyback’ offer launched earlier this year. The company bought back shares at an average price of Rs 3,090.92 per share, which gave a momentum to share prices for rising.

The company has reported standalone net loss of Rs.5.70 crore for the quarter ended March 31, 2016. However, it had reported net profit of Rs.571.42 crore in the corresponding quarter of the previous year and Rs. 236.80 crore in the preceding quarter. The company’s standalone revenue stands at Rs. 2,356.80 crores, down 12.34 per cent YoY and 2.96 per cent QoQ.

For the year ended March 31, 2016, the company has reported standalone net profit of Rs. 1,354.47 crores, declining by 19.35 per cent YoY. Its standalone revenue for the period stands at Rs. 10,207.70 crores, registering growth of 1.96 per cent YoY. It could be further interesting to see whether the stock comes back to the 2015 high which was 4000.