Dr Reddy's Laboratories Share Price: Here's why the stock is the top Nifty 50 gainer and at a record high

Pfizer also listed 12 critical products that are impacted due to the damage to its facility.

According to Antique Stock Broking, Dr Reddy's has two out of the 12 products listed by Pfizer - One is Dobutamine Hydrochloride, which is used in the case of heart failure but is currently discontinued by the compay and the other is Phytonadione, which is used in Vitamin K deficiency. This drug is currently supplied by Dr Reddy's, Zydus Lifesciences, and Cipla.

Analysts believe that the total opportunity for Indian generics is estimated to be around $50 million.

For the June quarter, Dr Reddy's estimated US sales are around $390 million, higher than the projected range of $328 million to $370 million. Even excluding the Revlimid generic, the company's US business saw market share gain, reduced price erosion and volume-based growth.

The company's gross margin rose by 770 basis points from last year to 58.7 percent and the company has guided for gross margins to be in the 56-59 percent range for financial year 2024.

Improving outlook for North America, increasing pace of launches in the Emerging Markets and growth prospects in the domestic markets is what is keeping the street encouraged on the company's prospects going forward. Out of the 41 analysts that track Dr Reddy's, 19 have a buy recommendation on Dr Reddy's, 10 say hold, while 12 have a sell recommendation.

Shares of Dr Reddy's Laboratories are trading 2.9 percent higher at Rs 5,820. The stock has gained nearly 50 percent from its 52-week low of Rs 3,996. The stock is trading at 20 times one-year forward at current levels.