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Upturn AI Summary - About
Dr. Reddy’s Laboratories Ltd ADR(RDY)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for RDY
10/29/2026: RDY (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Dr. Reddy’s Laboratories is a prominent global pharmaceutical company specializing in generic medicines, active ingredients, and emerging biosimilar therapies. The company is known for its strong manufacturing capabilities and long-standing presence in regulated markets like the United States. Its primary growth opportunity lies in expanding its portfolio of high-value complex generics and biosimilars to address unmet medical needs. Investors should remain mindful of significant risks, including intense price competition, regulatory scrutiny, and high market concentration in the US. The stock may be a suitable fit for value and dividend-oriented investors looking for established sector exposure, though performance depends on successful product execution and navigating global compliance challenges.
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 style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | The company offers moderate growth potential through specialized pipeline expansion rather than rapid hyper-growth. |
| Momentum investor | Mixed fit | Momentum investment is conditional on positive signals from successful regulatory approvals and product launches. |
| Value investor | Strong fit | The stock often trades at valuations that may appeal to value investors seeking established pharmaceutical businesses. |
| Dividend investor | Strong fit | Stable cash flows support regular dividend payments, making it suitable for income-oriented portfolios. |
| Low-risk investor | Mixed fit | While established, pharmaceutical regulation and price competition introduce sector-specific risks. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium | The stock can be sensitive to sector-wide news and generic pricing trends. |
| Valuation risk | Low | Current valuations generally reflect the company's steady but moderate growth prospects. |
| Competition risk (Generic drug pricing) | High | Intense competition in the US generics market puts continuous pressure on margins. |
| Business quality | Medium / high | Strong manufacturing foundation and global footprint indicate high business quality. |
| Dividend income | Medium | Consistent but moderate dividends provide steady income. |
| Execution risk | Medium | Success depends on timely regulatory approvals and navigating complex global compliance environments. |
Price Behavior
Downtrend
The stock has experienced a sustained decline in price over recent periods.
Smooth
The stock has moved along a generally orderly path with only modest fluctuations.
Analysis of Past Performance
Type Stock | Historic Profit 0.94% | Avg. Invested days 31 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Advisory Rating  | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 10/29/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 11.79B USD | Price to earnings Ratio 39.31 | 1Y Target Price 14.26 |
Price to earnings Ratio 39.31 | 1Y Target Price 14.26 | ||
Volume (30-day avg) 3.2M shares | Beta 0.25 | 52 Weeks Range 11.28 - 15.49 | Updated Date 10/29/2026 |
52 Weeks Range 11.28 - 15.49 | Updated Date 10/29/2026 | ||
Dividends yield (FY) 0.59% | Basic EPS (TTM) 0.36 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Global Generics | Generic drugs, prescription, and over-the-counter medicines. | This is the core business providing everyday medicine. |
| PSAI | Active Pharmaceutical Ingredients and contract manufacturing. | Supplies the essential raw materials for other pharmaceutical companies. |
| Geography: North America | Sales of generic products in the US and Canada. | This is a key market and major driver of company revenue. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2026-10-23 | When Before Market | Estimate 0.16 | Actual 0.12 |
Profitability
Profit Margin 8.49% | Operating Margin (TTM) 14.73% |
Management Effectiveness
Return on Assets (TTM) 3.37% | Return on Equity (TTM) 7.34% |
Valuation
Trailing PE 39.31 | Forward PE 29.85 | Enterprise Value 11.38B | Price to Sales(TTM) 0.04 |
Enterprise Value 11.38B | Price to Sales(TTM) 0.04 | ||
Enterprise Value to Revenue 3.28 | Enterprise Value to EBITDA 17.71 | Shares Outstanding 833.07M | Shares Floating 3.59B |
Shares Outstanding 833.07M | Shares Floating 3.59B | ||
Percent Insiders - | Percent Institutions 14.88 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
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)
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)
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)
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)
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)
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)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
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)
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)
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)
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)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
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)
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)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
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