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RDY

BEARISH
$13.72 Live
Dr. Reddy's Laboratories Limited · NYSE
Target $14.14 (+3.1%)
$12.77 52W Range $16.17

At a glance

Key valuation, profitability, growth, and risk metrics.

Updated May 02, 2026
Market cap
$11.45B
P/E
19.06
ROE
16.1%
Profit margin
16.4%
Debt/Equity
0.18
Dividend yield
0.67%

AI Analysis

AI-powered fundamental assessment

Confidence
85%
RDY exhibits a stable financial foundation with a Piotroski F-Score of 4/9 and very low leverage, but it is severely overvalued based on deterministic models. The current price of $13.72 trades at a massive premium to both the Graham Number ($3.61) and the Intrinsic Value ($5.04). This valuation gap is exacerbated by negative earnings growth (-14.30%) and a high PEG ratio of 3.77, suggesting the market is pricing in growth that is not currently manifesting in the data. While the balance sheet is healthy, the combination of bearish technicals and fundamental overvaluation makes the risk-reward profile unattractive.

Key Strengths

Very low Debt/Equity ratio (0.18) indicating minimal insolvency risk
Strong liquidity with a Current Ratio of 1.88
Healthy Return on Equity (ROE) of 16.10%
Consistent gross margins of 55.18%
Strong historical track record of earnings surprises over the last 25 quarters

Key Risks

Extreme overvaluation relative to Graham Number and Intrinsic Value
Negative year-over-year earnings growth (-14.30%)
High PEG ratio (3.77) indicating price is disconnected from growth
Bearish technical trend (0/100) and weak insider sentiment (40/100)
Forward P/E (25.09) is higher than current P/E (19.06), suggesting expected earnings contraction
AI Fair Value Estimate
Based on comprehensive analysis
$5.5
-59.9% below current price

Performance Snowflake

Multi-dimensional analysis across 5 key categories

Overall
44
Moderate
Value
15
Future
30
Past
65
Health
70
Dividend
40
AI Verdict
Overvalued Stable
Key drivers: Severe valuation premium, Negative earnings growth, Strong balance sheet
Confidence
90%
Value
15/100

Ref P/E 19.06, PEG 3.77, Graham Number $3.61

Positives
  • P/E is lower than the broad healthcare sector average
Watchpoints
  • Price is ~3.8x the Intrinsic Value
  • Price/Book of 17.01 is excessively high
  • PEG ratio of 3.77 is poor
Future
30/100

Ref Growth rates

Positives
  • Modest revenue growth (4.4%)
Watchpoints
  • Earnings growth is negative (-14.3%)
  • Forward P/E expansion suggests lower future earnings
Past
65/100

Ref Historical trends

Positives
  • Long history of beating earnings estimates
  • Positive 3Y price change (+15.4%)
Watchpoints
  • Recent 1Y performance is flat (-0.2%)
Health
70/100

Ref Piotroski F-Score 4/9, Debt/Equity 0.18

Positives
  • Very low debt levels
  • Strong current and quick ratios
Watchpoints
  • Piotroski F-Score is only 4/9 (Stable, not Strong)
Dividend
40/100

Ref Yield 0.67%, Payout 11.82%

Positives
  • Low payout ratio (11.82%) ensures sustainability
Watchpoints
  • Very low dividend yield (0.67%)

Stock Price & Analyst Targets

Real-time price movements and analyst price targets

Current Price
$13.72
Analyst Target
$14.14
Upside/Downside
+3.1%

Multi-Horizon Performance vs Peers

Price momentum across 5Y → 1W horizons for RDY and closest competitors.

Updated 2026-05-01
RDY
Dr. Reddy's Laboratories Limited
Primary
5Y
+2.5%
3Y
+15.4%
1Y
-0.2%
6M
+3.2%
1M
+1.9%
1W
+0.4%
ELA
Elanco Animal Health Incorporated
Peer
5Y
-26.6%
3Y
+143.8%
1Y
+140.5%
6M
+3.2%
1M
-10.8%
1W
-3.9%
ENS
The Ensign Group, Inc.
Peer
5Y
+116.3%
3Y
+96.7%
1Y
+49.7%
6M
+1.9%
1M
-5.3%
1W
-3.9%
EXE
Exelixis, Inc.
Peer
5Y
+91.2%
3Y
+119.8%
1Y
+29.5%
6M
+14.4%
1M
+4.3%
1W
+0.4%
MDG
Madrigal Pharmaceuticals, Inc.
Peer
5Y
+281.0%
3Y
+67.6%
1Y
+52.2%
6M
+23.0%
1M
+2.6%
1W
-2.0%

Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.

Historical Performance Trends

Long-term financial metrics and growth patterns

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Historical data shows last 12 quarters (3 years)

Valuation Metrics

Key valuation ratios and pricing indicators

P/E Ratio
19.06
Forward P/E
25.09
PEG Ratio
3.77
P/B Ratio
17.01
P/S Ratio
0.03
EV/Revenue
N/A
EV/EBITDA
-0.0
Market Cap
$11.45B

Profitability

Profit margins and return metrics

Profit Margin 16.36%
Operating Margin 16.42%
Gross Margin 55.18%
ROE 16.1%
ROA 7.96%

Growth

Revenue and earnings growth rates

Revenue Growth +4.4%
Earnings Growth -14.3%
Q/Q Revenue Growth +4.41%
Q/Q Earnings Growth -14.4%

Financial Health

Balance sheet strength and liquidity metrics

Debt/Equity
0.18
Low debt
Current Ratio
1.88
Good
Quick Ratio
1.18
Good
Cash/Share
$99.2

Financial Statement Flow

Interactive flow visualization showing how money moves through the company Q4 2025

Revenue
$87.3B
Gross Margin
53.6%
Op. Margin
16.4%
Net Margin
13.9%
Total Assets
$562.9B
Liabilities
$187.1B
Equity
$372.4B
Debt/Equity
0.50x
Operating CF
$10.9B
CapEx
$-7.3B
Free Cash Flow
$3.6B
FCF Yield
33%

Quarterly Earnings History

EPS performance vs analyst estimates

2026-05-12
$N/A
2025-05-09
$19.11
+11.6% surprise
2025-01-23
$16.94
+4.9% surprise
2024-11-05
$15.83
-10.5% surprise

Healthcare Sector Comparison

Comparing RDY against 595 companies in the Healthcare sector (36 bullish, 188 neutral, 371 bearish)
P/E Ratio
19.06
This Stock
vs
71.35
Sector Avg
-73.3% (Discount)
Return on Equity (ROE)
16.1%
This Stock
vs
-87.4%
Sector Avg
-118.4% (Below Avg)
Profit Margin
16.36%
This Stock
vs
-15.81%
Sector Avg
-203.5% (Weaker)
Debt to Equity
0.18
This Stock
vs
2.56
Sector Avg
-92.9% (Less Debt)
Revenue Growth
4.4%
This Stock
vs
118.3%
Sector Avg
-96.3% (Slower)
Current Ratio
1.88
This Stock
vs
4.36
Sector Avg
-56.9% (Weaker)

Similar Companies

Peer comparison within the same industry

SEC Filings

Recent regulatory filings from the SEC EDGAR database

20-F
FORM 20-F
2025-06-06

RDY filed its Form 20-F annual report on June 6, 2025, as a foreign private issuer. Specific financial highlights and risk factors were not provided in the available metadata.

20-F
FORM 20-F
2024-06-12

RDY filed its Form 20-F annual report on June 12, 2024, providing a comprehensive overview of its fiscal year performance and operational status. Specific financial highlights and risk factors are detailed within the full filing, as no excerpted data was provided.

Data sourced from SEC EDGAR. AI summaries generated automatically.

Past News Coverage

Recent headlines mentioning RDY from our newsroom.

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