Shares of Dr Reddy’s Laboratories Ltd have risen about 140% in the past three years and are trading at all-time highs. In FY17, for instance, Sun Pharma had a return on capital employed (RoCE) of 16%, double that of Dr Reddy’s. “After hitting rock-bottom in FY17, Dr Reddy’s RoCE has improved consistently while Sun’s RoCE has stagnated," said Jefferies’ analysts in a recent report. The pharma market in China also opens opportunities for Dr Reddy’s. In the domestic market, Dr Reddy’s acquisition of the Wockhardt portfolio is aiding growth.

Source: Mint July 07, 2021 18:00 UTC