Dr. Reddy’s Laboratories Ltd (RDY) fair value: what the stock is really worth
As of Nov 12, 2026: fair value (intrinsic value) of Dr. Reddy’s Laboratories Ltd stock $10.95, price $14.73, that is 25.7% below the price, quality 50 out of 100. Rating: overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Dr. Reddy’s Laboratories Ltd
RDY · USExpensive (fair value 26% below the price) and price moving sideways, but solid company: meets 1 of 3 rules.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 13, 2026.
How to read this chart
60‑month range $8.49 – $16.57 · fair‑value band $6.20 – $14.17 · the $14.73 price screens above the $10.95 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 13, 2026.
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Company profile
Dr. Reddy's Laboratories Limited, together with its subsidiaries, operates as an integrated pharmaceutical company North America, Europe, India, Russia, and internationally. The company operates through Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Others segment.
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Its Global Generics segment manufactures and markets prescription and over-the-counter finished pharmaceutical products that are marketed under a brand name or as a generic finished dosages with therapeutic equivalence to branded formulations, as well as engages in the biologics business.
The PSAI segment manufactures and markets active pharmaceutical ingredients and intermediates, which are principal ingredients for finished pharmaceutical products.
This segment also provides contract research services; and manufactures and sells active pharmaceutical ingredients and steroids with the customer requirements.
Its Others segment engages in developing therapies in the fields of oncology and inflammation; and research, development, and commercialization of differentiated formulations.
The company offers its products for various therapeutic categories, including gastro-intestinal, cardiovascular, anti-diabetic, dermatology, oncology, respiratory, stomatology, urology, and nephrology, vaccines, vitamins and minerals, and pain management.
Dr. Reddy's Laboratories Limited was incorporated in 1984 and is headquartered in Hyderabad, India.
Stock analysis
Dr. Reddy’s Laboratories Ltd (RDY) currently trades at $14.73, while our model-based Fair Value estimate is $10.95, 26% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $10.95 per share, and 2 of the 26 models we run sit above the $14.73 price.
Bear case: the Asset-Based group reads lowest at $1.27, and 24 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: $6.20 (bear) to $14.17 (bull), the price of $14.73 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 50/100 (solid quality), in the Healthcare sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Dr. Reddy’s Laboratories Ltd ADR reported revenue of ₹353B in FY2026 versus ₹214B in FY2022, a compound +13.3%/yr. Reported net income was ₹45.1B in FY2026, compounding +17.6%/yr from FY2022.
Key figures
Market cap $12.3B Large · P/E ratio 33.5 · P/S ratio 4.27 · EPS (TTM) $0.4400 · Dividend yield 0.6% · Net margin 12.8% · Return on equity 8.8% · Return on assets (EBIT) 13.7% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 40 out of 100 (medium confidence).
What moves the price
The share trades about 3% below its 52-week high and 30% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Healthcare peers we cover trades at −27% fair-value upside, at −26%, RDY screens cheaper than that median.
Fair Value models
All 26 models by family
Models of DRREDDY.NSE, converted to this listing with the same factor as the fair value.
Quality Score breakdown
It rates the business: profits, how they develop, real cash, balance sheet, investing and share count.
Revenue & earnings trend
Growth Forecast
RDY screens overvalued: fair value 26% below the price. Compare with Merck KGaA →
Earlier news
- RDY Q2 Earnings & Revenues Miss Estimates as Lenalidomide Sales Fall
- Dr. Reddy’s outlines semaglutide relaunch in November 2026 and reiterates 6M-7M devices target
Compare Dr. Reddy’s Laboratories Ltd ADR with another stock
Price, fair value, quality and upside side by side.
Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Drug Manufacturers - Specialty & Generic · 604 stocks
Valuation Multiplesvs Drug Manufacturers - Specialty & Generic median · lower = cheaper
Strength profile in five axes (Snowflake)
VALUE 0: the price sits above our fair-value range.
Context: sector, industry, market
- Is the Health Care sector expensive or cheap?
- P/E, EV/EBITDA and margins by industry (reference tables)
- Revenue growth by industry
- PEG ratio by industry
- Piotroski F-Score screener with fair value
- Undervalued stocks: US Stocks
- Valuation of the USA market
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Drug Manufacturers - Specialty & Generic stocks, each showing price versus our Fair Value estimate.
| Stock | Price | Fair Value | vs Fair Value | Compare |
|---|---|---|---|---|
| Zoetis Inc ZTS | $82.96 | $113.53 | +37% | vs RDY |
| Jiangsu Hengrui Pharmaceuticals Co 600276 | ¥47.93 | ¥53.04 | +11% | vs RDY |
| Sun Pharmaceutical Industries Limited SUNPHARMA | ₹1,885 | ₹1,983 | +5% | vs RDY |
| Haleon plc HLN | $9.09 | $8.62 | −5% | vs RDY |
| Merck KGaA MRK | €148.15 | €108.83 | −27% | vs RDY |
| Galderma Group GALD | CHF 194.40 | CHF 111.92 | −42% | vs RDY |
| Takeda Pharmaceutical Company TAK | $21.12 | $11.34 | −46% | vs RDY |
| Teva Pharmaceutical Industries Limited TEVA | $43.65 | $20.74 | −52% | vs RDY |
| Sandoz Group SDZ | CHF 86.90 | CHF 40.54 | −53% | vs RDY |
| Divi's Laboratories Limited DIVISLAB | ₹11,485 | ₹1,567 | −86% | vs RDY |
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Key figures of Dr. Reddy’s Laboratories Ltd
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