Dr.Reddy & Lupin went up today

Dr. Reddy & Lupin went up today by around 3%. This is one of the best closing for these two shares. After IT, Pharma is the heavily beaten down sector due to issues around the FDA investigations. These two shares were trading around the 52 weeks low, both the stocks made 52 week’s low last week. In the technical charts, they are showing heavily oversold signal. It is highly likely that they will have relief rally. Dr. Reddy had volume of close to million shares, which is significantly higher than the normal volume.

Dr. Reddy vs Nifty 50 two years performance
Dr. Reddy vs Nifty 50 two years performance
Dr. Reddy vs Nifty 50 six months performance
Dr. Reddy vs Nifty 50 six months performance

 

Dr. Reddy vs Nifty 50 one month performance
Dr. Reddy vs Nifty 50 one month performance

If we look at the performance of Nifty 50 & DR. Reddy, it is clearly evident that over the last two years period Reddy has under performed the index by 40%, the same is 35% in the last six month. Over the last one months, the pair is bottoming out and Reddy is started showing the strength. We need to wait and see if Pharma stocks have potential to retain the over all market sentiment and going to track the index down.

The company on Friday reported a Profit after Tax at Rs 3.1 billion rupees for the quarter ended March 2017. The board of directors of the company on Friday also announced that it has recommended a final dividend of Rs. 20/- (400%) per equity share of Rs. 5/- face value, for the financial year 2016-17.

The board has also granted 151,212 stock options, exercisable at par value of Rs.5/- under ‘Dr. Reddy’s Employees Stock Option Scheme, 2002’ and 63,304 stock options, exercisable at par value of Rs.5/- under ‘Dr. Reddy’s Employees ADR Stock Option Scheme, 2007’ to the employees of the Company, as per BSE filing.

 

Muthuraj Paulraj

Passionate about investing and trading in Options.