Dr. Reddy’s Laboratories Ltd ADR logo

Dr. Reddy’s Laboratories Ltd ADR(RDY)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$12.51
09/28/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Upturn Advisory & Investor View for RDY

09/28/2026: RDY (1-star) is currently NOT-A-BUY. Pass it for now.

Dr. Reddy’s Laboratories Ltd ADR is a globally integrated pharmaceutical company known for its strong generic medicine portfolio and expanding presence in biosimilars. Its main strengths lie in its vertically integrated manufacturing capabilities and a proven track record of entering complex pharmaceutical markets. The company's growth story is centered on its pivot toward high-value biosimilars and niche injectables to combat the price erosion common in simpler generics. Investors should be aware of persistent regulatory risks and the competitive intensity of the generic market. The stock may best suit investors looking for value or growth exposure in pharmaceuticals, provided they can monitor key regulatory developments and product pipeline progress.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitThe company offers growth potential through complex generics, but growth rates are tempered by generic market competition.
Momentum investorMixed fitThe stock can exhibit momentum during successful product launches, though it is often subject to sector-wide regulatory sentiment.
Value investorStrong fitThe company often trades at valuations that may appeal to value investors looking for established pharmaceutical assets.
Dividend investorMixed fitThe company pays a regular dividend, though it may not be the primary driver for total return-focused income investors.
Low-risk investorMixed fitWhile established, pharmaceutical manufacturing risks and regulatory exposure introduce volatility unsuitable for extremely conservative investors.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMediumFluctuations in drug pricing and market sentiment can lead to short-term stock price swings.
Valuation riskLowThe stock is typically priced in line with historical norms, reducing extreme valuation downside.
Competition risk (generic market saturation)HighIntense competition in the generic sector frequently puts downward pressure on profit margins.
Business qualityMediumThe business has a solid, established foundation but faces constant regulatory and operational pressure.
Dividend incomeLowDividends are reliable but not the primary growth catalyst for the company.
Execution riskMedium / highSuccessfully managing R&D and navigating global regulatory hurdles is critical to long-term performance.

Price Behavior

Downtrend
PRICE PATH

Downtrend

The stock has experienced a sustained decline in price over recent periods.

Smooth
PRICE STABILITY

Smooth

The stock has moved along a generally orderly path with only modest fluctuations.

Analysis of Past Performance

Type Stock
Historic Profit -9.84%
Avg. Invested days 34
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 3.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/28/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
RDY receives a 3-star rating, supported by solid quantitative characteristics. The rating is constrained by weak price momentum, and limited analyst upside.

Company Fundamentals

★★★★★
RDY has moderate overall fundamentals (3 stars), with solid financial health, solid growth momentum, and moderate ownership. In FY2026 versus FY2025, solid cash generation (FCF margin 9.1%) and solid profitability (net margin 12.8%) are partially offset by negative earnings growth (-20.3%), moderate revenue growth (+8.6%), very low insider ownership of 0.00%.

Financial Health Rating

★★★★★
RDY's financial health is supported by strong cash strength, including free-cash-flow generation of $32.1B (9.1% of revenue). Profitability is moderate (3 stars), which helps explain the 4-star overall score.

Growth Momentum Score

★★★★★
Free-cash-flow growth is RDY's strongest growth driver at +166.8% FY2026 versus FY2025 (strong, 5 stars). By comparison, while revenue growth (+8.6%, moderate) and earnings growth (-20.3%, negative) hold the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 15.9% (soft) and 431.3% of outstanding shares are publicly tradable (strong). Insider ownership is only 0.00%, which materially reduces the ownership score.

Top 5 Institutional Investors

Robeco Institutional Asset Management BV 2.16%
BlackRock Inc 1.39%
Royal Bank of Canada 1.20%
Morgan Stanley - Brokerage Accounts 1.13%
Aikya Investment Management Ltd 1.02%

Unit Economics (Per $1K Revenue)

★★★★★
RDY generates approximately $528 of gross profit, $138 of operating income, and $91 of free cash flow for every $1,000 of revenue. Based on FY2026 results. Moderate margins and soft cash conversion support a 3-star rating, while capital efficiency is soft.

Economic Dimensions

★★★★★
Effective Tax Rate: 22.53%

Quantitative Style Profile

★★★★★
RDY has a large-cap, liquid, relatively low-volatility profile. Weak momentum is the primary drawback.

Style Classification

Quality Focused

Value-OrientedLow VolatilityLarge / Mega Cap StabilityHighly Liquid / Institution-Friendly

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 10.20B USD
Price to earnings Ratio 29.88
1Y Target Price 13.36
Price to earnings Ratio 29.88
1Y Target Price 13.36
Volume (30-day avg) 2.8M shares
Beta 0.24
52 Weeks Range 11.28 - 15.51
Updated Date 09/27/2026
52 Weeks Range 11.28 - 15.51
Updated Date 09/27/2026
Dividends yield (FY) 0.68%
Basic EPS (TTM) 0.41

How Company Makes Money

Business areaWhat it includesRetail investor read
Global GenericsSale of generic prescription medicines in North America, India, and emerging markets.This is the core of the business, generating the bulk of revenue through affordable medicine sales.
PSAI (Pharmaceutical Services)Manufacturing and supply of active pharmaceutical ingredients and custom services for other drug makers.This segment acts as a foundational supplier, benefiting from B2B demand for high-quality drug components.
Geography: North AmericaGeneric drug sales and distribution within the United States.A key revenue driver; growth here depends on winning complex generic approvals and managing competition.

Analyzing Revenue: Products, Geography and Growth

Revenue by Geography

Geography revenue - Year on Year

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Valuation

Trailing PE 29.88
Forward PE 27.03
Enterprise Value 10.43B
Price to Sales(TTM) 0.03
Enterprise Value 10.43B
Price to Sales(TTM) 0.03
Enterprise Value to Revenue 3.02
Enterprise Value to EBITDA 14.98
Shares Outstanding 832.99M
Shares Floating 3.59B
Shares Outstanding 832.99M
Shares Floating 3.59B
Percent Insiders -
Percent Institutions 15.9

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Dr. Reddy’s Laboratories Ltd ADR

Exchange NYSE
Headquarters -
IPO Launch date 2001-04-11
CEO & Member of the Management Council Mr. Erez Israeli M.B.A.
Sector Healthcare
Industry Drug Manufacturers - Specialty & Generic
Full time employees 27527
Full time employees 27527

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. 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.