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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)
Advisory Performance History (Simulated)
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 style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | The company offers growth potential through complex generics, but growth rates are tempered by generic market competition. |
| Momentum investor | Mixed fit | The stock can exhibit momentum during successful product launches, though it is often subject to sector-wide regulatory sentiment. |
| Value investor | Strong fit | The company often trades at valuations that may appeal to value investors looking for established pharmaceutical assets. |
| Dividend investor | Mixed fit | The company pays a regular dividend, though it may not be the primary driver for total return-focused income investors. |
| Low-risk investor | Mixed fit | While established, pharmaceutical manufacturing risks and regulatory exposure introduce volatility unsuitable for extremely conservative investors. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium | Fluctuations in drug pricing and market sentiment can lead to short-term stock price swings. |
| Valuation risk | Low | The stock is typically priced in line with historical norms, reducing extreme valuation downside. |
| Competition risk (generic market saturation) | High | Intense competition in the generic sector frequently puts downward pressure on profit margins. |
| Business quality | Medium | The business has a solid, established foundation but faces constant regulatory and operational pressure. |
| Dividend income | Low | Dividends are reliable but not the primary growth catalyst for the company. |
| Execution risk | Medium / high | Successfully managing R&D and navigating global regulatory hurdles is critical to long-term performance. |
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 -9.84% | Avg. Invested days 34 | Today’s Advisory PASS |
Upturn Advisory Rating ![]() | Upturn Advisory Performance | Stock Returns Performance |
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 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 area | What it includes | Retail investor read |
|---|---|---|
| Global Generics | Sale 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 America | Generic 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
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 |
Upturn AI Summary
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
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.
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 | Website https://www.drreddys.com |
Full time employees 27527 | Website https://www.drreddys.com | ||
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.

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