Why Dr Reddy’s Stock Fell 10% After Missing Q1 Estimates by 1%

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Why Dr Reddy’s Stock Fell 10% After Missing Q1 Estimates by 1%

By Aditya Raghunath

Investing.com -- Dr. Reddy’s Laboratories Ltd (NS: REDY ) reported its numbers for Q1 FY22. Net profit came in at Rs 570.8 crore compared to Rs 594.6 crore in the corresponding quarter last fiscal. Revenue for Q1 FY22 came in at Rs 4,919 crore, up 11% compared to Rs 4,417.5 crores in Q1 FY21.

The stock closed at Rs 4,835.2, down 10.31% today. The reason for this drop is not the missed numbers. It is because Dr. Reddy’s has been issued a subpoena of documents for CIS (Commonwealth of Independent States) geographies, and that the company is investigating an anonymous complaint into improper payments in other countries.

In an exchange filing, Dr. Reddy’s said, ''The company has commenced a detailed investigation into an anonymous complaint. The complaint alleges that healthcare professionals in Ukraine and potentially in other countries were provided with improper payments by or on behalf of the Company in violation of US anti-corruption laws, specifically the US Foreign Corrupt Practices Act. A US law firm is conducting the investigation at the instruction of a committee of the Company's Board of Directors.''

The company has said that it has disclosed the ongoing investigation to the US DoJ (Department of Justice, SEC (Securities and Exchange Commission), and SEBI (Securities Exchange Board of India).

Dr. Reddy's said it is also in the process of responding to the subpoena. ''While the matter may result in government enforcement actions against the company in the United States and/or foreign jurisdictions, which could lead to civil and criminal sanctions under relevant laws, the probability of such action and the outcome are not reasonably ascertainable at this time,'' the company added.

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  • samir machcchu @samir machcchu
    Add on evey deep .... will recover all loses eithin 2-3 working session
    Like 0
    • samir machcchu @samir machcchu
      *within
      Like 0

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  • madhu tippaluru @madhu tippaluru
    all negative news come now..to take it further down and scare retailers to exit..time to catch the fear
    Like 1
  • man malp @man malp
    WHEN FALL COMES EVERYONE FINDS HIS OWN REASON LIKE OVERPRICED...ALREADY RUNUP A LOT ETC..ETC...BUY KAB KAROGE...USE CORRECTION TO INVEST...REMEMBER INFY WHISTLE BLOWER EPISODE...SAME HERE...STILL INVESTIGATION GOING ON.
    Like 5
  • Prakash Chand Goyal @Prakash Chand Goyal
    sell karna chahiye
    Like 0
    • Sunil Jaiswal @Sunil Jaiswal
      it's the time to buy and you want to sell. You are getting it at discount price 10-20%. what do you think a company of about 92k crore capital. will vanish from the market.
      Like 0

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  • Himanshu Dave @Himanshu Dave
    sell off with great volume but delivery 23%. Means, threatening retail investors.
    Like 2
  • Francis Figer @Francis Figer
    My fingers are crossed. Waiting on right verdict in the matter. In the meanwhile seize an advantage of fall in CMP eventually and invest more in it. Dr. Reddy’s stock is very good for the long run investment.
    Like 1
  • Amreek Singh Sandhu @Amreek Singh Sandhu
    Big Players already played the game, someone filled a case from India in Ukraine to bring it down n make money.
    Like 1
  • Vishnu Tallapragada @Vishnu Tallapragada
    Stock is anyway over valued like many others in 2021... it can still go lower for the coming quarters as maintaining these hyped expectations will be achievement forget about beating them
    Like 2
  • Amreek Singh Sandhu @Amreek Singh Sandhu
    Big Players already played the game, someone filled a case from India in Ukraine to bring it down n make money.
    Like 0
  • Tom Singh @Tom Singh
    at the end of the day insider got the news before hand.
    Like 1
  • Gaurav Anand @Gaurav Anand
    Buy it tomorrow or you ll miss it
    Like 3
  • SJS Badwal @SJS Badwal
    Market overreacted.it will bounce back .
    Like 6

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