Dr. Reddy’s Shares Eye Breakout As Q4 Beat Lifts Stock Toward ₹1,220 Resistance: SEBI RA Prameela Balakkala

Dr. Reddy’s shares are approaching a key resistance zone following a strong Q4FY25 earnings beat, according to Balakkala. A breakout above this level could trigger a rally toward ₹1,260 and ₹1,400.

Shares of Dr. Reddy’s Laboratories are on track to break through a critical range between ₹1,200 and ₹1,220 where surpassing resistance levels might lead to a significant price increase, according to SEBI-registered analyst Prameela Balakkala.

The stock displays a strong technical and fundamental configuration following its fourth-quarter (Q4) earnings beat.

At the time of writing, Dr. Reddy’s shares were trading at ₹1,184.6, up 2.48% for the day. 

The company hit a 22% year-over-year net profit growth reaching ₹1,594 crore alongside a 20% revenue increase to ₹8,506 crore thanks to global product launches and new acquisitions including NRT. 

The company's EBITDA for the period reached ₹2,975 crore and its profit margins expanded to 29.1%.

According to Balakkala, a breakout above ₹1,220 will establish ₹1,260 as the next target before potentially advancing toward ₹1,400 given continuous bullish momentum. 

The stock shows support levels at ₹1,100 and ₹1,060 on the downside.

Despite existing risks from U.S. pricing pressures and macro factors, the stock should perform well based on current earnings and technical indicators, Balakkala said.

On Stocktwits, retail sentiment was ‘bullish’ amid ‘high’ message volume.

Dr. Reddy’s shares have declined 13.5% so far in 2025.

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