Is RDY's EPS performance signaling a long-term uptrend?

**Dr. Reddy's Laboratories (RDY) is exhibiting positive EPS signals that suggest a potential long-term uptrend**. The following points support this conclusion:

1. **Consistent EPS Growth**: RDY's EPS has shown a consistent upward trend over the past quarters. The company reported an EPS of $0.20 for Q3 2025, which is above the consensus estimate of $0.19. This indicates strong financial performance and suggests that the company is generating more earnings per share than expected.
2. **Beat Analyst Estimates**: RDY has consistently beaten analyst estimates for EPS. For instance, in Q4 2024, the company reported an EPS of 94 cents, which was above the analyst estimate of 82 cents. This track record of beating estimates can be a positive signal for investors, as it indicates that the company is managing to exceed market expectations.
3. **Revenue Growth**: Although RDY missed revenue expectations in Q4 2024, the company has experienced a 16% year-over-year growth in consolidated revenue for Q3 2025, reaching INR8,359 crores (USD977 million). This growth in revenue, along with the EPS beat, suggests a strong business performance that could signal a long-term uptrend.
4. **Investor Confidence**: The investment actions of institutional investors can also provide insights into the potential long-term outlook. Schroder Investment Management Group and Dimensional Fund Advisors LP have increased their holdings in RDY, indicating confidence in the company's future prospects.

In conclusion, the EPS performance of RDY, combined with the company's revenue growth and positive analyst sentiment, is signaling a positive outlook for the stock. However, it's important to monitor the company's performance closely, as the pharmaceutical sector can be highly competitive and subject to regulatory changes that could impact financial performance.