Dr Reddys Laboratories Ltd logo

Dr Reddys Laboratories Ltd

DRREDDY NSE

Dr. Reddy's Laboratories Ltd is a leading India-based pharmaceutical company which offers a portfolio of products and services, including Active Pharmaceutical Ingredients (APIs), Custom Pharmaceutical services (CPS), generics, biosimilars and differentiated formulations.

AI Verdict: HOLD Confidence: 5%

Dr Reddy's trades at a PE of 25.5x with declining profitability (TTM profit growth of -24%) despite moderate long-term sales compounding of 12% over 5 years. With 47% analyst buy ratings but a negative 1-year stock CAGR of -4%, the risk-reward is balanced and warrants a hold until earnings recovery becomes visible.

Key Fundamentals

MidcapPharmaceuticalsHealthcare
Market Cap
1.1L Cr
Volatility
Moderate
P/E Ratio
26.86
EBITDA
₹6,347 Cr
Return on Equity
19.74%
Debt to Equity
0.11
Book Value
₹453.97
EPS
₹333.59
52W High
₹1,375.9
52W Low
₹1,148.4

Technical Indicators

Key Insights

Weaknesses

1
  • Dividend payout has been low at 13.2% of profits over last 3 years

Growth Rate

Revenue Growth
-0.44% ↗
Net Income Growth
-30.16% ↗
Cash Flow Change
2.19% ↗
ROE
-14.54% ↗
ROCE
-13.11% ↗
EBITDA Margin (Avg.)
-36.49% ↗

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
HOLD
Risk medium

Dr Reddy's trades at a PE of 25.5x with declining profitability (TTM profit growth of -24%) despite moderate long-term sales compounding of 12% over 5 years. With 47% analyst buy ratings but a negative 1-year stock CAGR of -4%, the risk-reward is balanced and warrants a hold until earnings recovery becomes visible.

Bull Case 7
  • Strong 5-year compounded sales growth of 12% demonstrates consistent top-line expansion in a defensive healthcare sector
  • 5-year compounded profit growth of 17% shows the company has historically delivered strong earnings growth despite recent weakness
  • 47.37% of analysts rate the stock a Buy (18 out of 38 analysts), indicating meaningful institutional confidence
  • 10-year stock CAGR of 7% with 3-year ROE averaging 17% reflects a quality compounder with decent capital efficiency
  • Market cap of Rs 1,05,741 crore provides large-cap stability, liquidity, and lower volatility for investors
  • Price-to-book ratio of 2.79x is reasonable for a pharma company with 5-year ROE averaging 17%, implying fair value creation
  • 10-year compounded sales growth of 8% indicates a durable business model with sustained demand across cycles
Bear Case 8
  • TTM compounded profit growth is sharply negative at -24%, signaling significant near-term earnings deterioration
  • 1-year stock CAGR of -4% indicates the market is already pricing in weakening fundamentals and negative momentum
  • Last year ROE dropped to 12% from a 3-year average of 17%, a 500 basis point decline reflecting reduced profitability
  • Dividend payout has been low at just 13.2% of profits over the last 3 years, offering minimal income support with a yield of only 0.63%
  • 3-year compounded profit growth is negative at -3%, suggesting earnings issues are not just a one-quarter anomaly
  • 28.95% of analysts (11 out of 38) rate the stock a Sell, which is unusually high for a large-cap pharma name
  • TTM sales growth has decelerated sharply to just 3% from a 5-year CAGR of 12%, indicating top-line momentum is fading
  • PE of 25.5x is elevated relative to declining earnings, creating valuation risk if profit recovery is delayed

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Positives 3
  • First-to-market Bosutinib US launch Jun 13

    Dr Reddy's launched Bosutinib Tablets 400mg (generic Bosulif) as the first-to-market generic in the US on June 13, 2026, providing a competitive revenue opportunity.

  • Final dividend of Rs.8/share Jun 20

    Board recommended a final dividend of Rs.8 per share; 42nd AGM scheduled for July 23, 2026 via video conference.

  • 25 years on NYSE celebrated May 28

    Dr Reddy's marked 25 years of NYSE listing with a Closing Bell ceremony on May 29, 2026, reinforcing its global brand presence.

Neutral 5
  • Full SEBI compliance in FY26 May 28

    Secretarial audit confirmed zero deviations or penalties under SEBI regulations for the full year FY26.

  • No promoter share encumbrance Jun 13

    Promoters confirmed no encumbrance on shares during FY26, disclosed to NSE and BSE under SEBI norms.

  • Multiple institutional investor meets Jun 10

    Management scheduled meetings with Investec (London, Jun 16-17), ICICI Securities & Macquarie (Jun 9-10), and Bank of America (Jun 5) in June 2026.

  • FY26 annual report filed with SEC May 30

    Form 20-F for FY26 filed with US SEC containing IFRS-based consolidated financial statements.

  • Unclaimed dividend transfer to IEPF May 28

    Notice published May 27, 2026 regarding transfer of unclaimed dividends and corresponding shares to IEPF.

TL;DR: Dr Reddy's is executing well on its US generics strategy with a first-to-market Bosutinib launch and maintaining strong corporate governance with full SEBI compliance and no promoter pledging. No material headwinds emerged in recent news flow. Active investor engagement and a milestone NYSE anniversary signal confidence. The near-term outlook is stable with potential upside from the new US generic launch contributing to revenues.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
6,315
6,758
6,903
7,237
7,114
7,696
8,038
8,381
8,528
8,572
8,828
8,753
7,546
Expenses
4,781
4,696
4,894
5,214
5,283
5,566
5,962
6,108
6,530
6,398
6,818
6,866
7,164
Operating Profit
1,534
2,062
2,008
2,023
1,831
2,130
2,076
2,273
1,998
2,174
2,010
1,888
382
OPM %
24%
31%
29%
28%
26%
28%
26%
27%
23%
25%
23%
22%
5%
Other Income
146
178
319
219
201
193
314
154
528
290
330
271
480
Interest
35
37
35
39
59
60
76
82
66
83
91
94
106
Depreciation
316
353
376
374
368
381
397
471
455
476
505
521
557
PBT
1,329
1,850
1,917
1,829
1,605
1,883
1,917
1,874
2,005
1,905
1,745
1,543
200
Tax %
28%
24%
23%
24%
18%
26%
30%
25%
21%
26%
23%
23%
-11%
Net Profit
960
1,405
1,482
1,381
1,310
1,392
1,342
1,404
1,587
1,410
1,337
1,190
221
EPS in Rs
11.53
16.87
17.77
16.56
15.7
16.69
15.05
16.94
19.09
16.99
16.14
14.5
2.65
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
15,023
15,568
14,196
14,281
15,448
17,517
19,048
21,545
24,670
28,011
32,644
33,700
Expenses
11,515
11,983
11,724
11,930
12,270
15,040
15,173
17,778
18,200
20,078
24,097
27,247
Operating Profit
3,508
3,585
2,472
2,351
3,178
2,477
3,874
3,768
6,470
7,933
8,547
6,454
OPM %
23%
23%
17%
16%
21%
14%
20%
17%
26%
28%
26%
19%
Other Income
260
295
172
155
381
670
335
555
971
909
1,119
1,372
Interest
108
83
63
79
89
98
97
96
143
171
283
374
Depreciation
760
939
1,027
1,077
1,135
1,163
1,229
1,165
1,250
1,470
1,704
2,059
PBT
2,900
2,859
1,554
1,350
2,336
1,886
2,884
3,061
6,048
7,201
7,680
5,393
Tax %
19%
26%
19%
32%
17%
-7%
32%
29%
25%
23%
25%
23%
Net Profit
2,336
2,131
1,292
947
1,950
2,026
1,952
2,182
4,507
5,578
5,725
4,158
EPS in Rs
27.43
24.98
15.59
11.41
23.49
24.38
23.47
26.23
54.14
66.87
67.77
50.27
Div. Payout %
15%
16%
26%
35%
17%
21%
21%
23%
15%
12%
12%
16%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
85
85
83
83
83
83
83
83
83
83
83
84
Reserves
9,768
12,484
12,179
12,489
13,941
15,516
17,558
19,129
23,203
28,171
33,466
37,808
Borrowings
4,314
3,352
4,918
5,071
3,838
2,210
3,031
3,384
1,347
2,002
4,677
7,734
Other Liabilities
4,290
4,408
4,474
4,706
4,557
5,414
5,915
7,149
7,576
8,523
9,797
12,498
Total Liabilities
18,457
20,330
21,654
22,349
22,418
23,223
26,588
29,746
32,209
38,780
48,023
58,123
Fixed Assets
5,377
6,563
6,931
6,968
7,191
6,850
8,206
8,122
9,219
10,426
18,226
22,063
CWIP
529
772
3,324
3,470
2,934
1,535
1,565
1,293
1,030
1,419
2,466
1,460
Investments
2,248
3,833
2,110
2,298
2,587
2,678
2,212
2,616
4,986
4,930
4,051
5,285
Other Assets
10,303
9,162
9,290
9,612
9,707
12,160
14,605
17,715
16,974
22,004
23,280
29,315
Total Assets
18,457
20,330
21,654
22,349
22,418
23,223
26,588
29,746
32,209
38,780
48,023
58,123
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
2,524
3,263
2,144
1,803
2,870
2,984
3,570
2,811
5,888
4,543
4,643
5,674
Investing
-2,370
-1,610
-1,890
-1,483
-769
-495
-2,255
-2,565
-4,109
-4,034
-5,785
-6,549
Financing
-433
-1,700
-369
-444
-2,133
-2,516
-30
-242
-2,686
-376
1,891
829
Net Cash Flow
-280
-47
-114
-124
-31
-27
1,286
3
-907
133
749
-47
Free Cash Flow
1,009
2,065
926
713
2,248
2,412
2,323
1,238
4,009
1,908
1,327
2,004
CFO/OP
88
111
110
88
106
149
107
94
108
83
78
109
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
100
97
98
104
94
105
95
113
107
105
101
110
Inventory Days
248
248
282
263
273
230
273
250
232
283
260
228
Days Payable
84
88
104
121
111
100
109
111
108
116
97
91
Cash Conversion Cycle
264
257
275
246
256
235
259
252
231
271
264
247
Working Capital Days
26
34
-14
39
65
59
57
61
84
118
69
109
ROCE %
22%
19%
9%
8%
13%
11%
16%
14%
27%
27%
23%
14%

Shareholding Pattern

As of Mar 2026
FIIs 33.08%
DIIs 30.72%
Promoters 26.63%
Public 7.57%
Others 1.99%
Total 99.99%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
26.74%
26.73%
26.72%
26.72%
26.72%
26.71%
26.71%
26.70%
26.70%
26.69%
26.66%
26.65%
26.65%
26.65%
26.64%
26.64%
26.64%
26.64%
26.64%
26.64%
26.63%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
42.21%
0.00%
44.49%
42.27%
41.75%
40.08%
37.29%
36.36%
35.52%
33.20%
33.08%
DIIs
14.25%
15.08%
20.92%
21.95%
24.46%
24.95%
24.47%
23.38%
23.05%
21.99%
21.04%
16.21%
18.31%
20.73%
21.48%
22.90%
25.62%
26.74%
27.98%
30.44%
30.72%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
8.31%
7.76%
8.14%
8.27%
8.37%
8.22%
8.06%
7.84%
7.59%
7.51%
7.91%
8.44%
8.25%
8.07%
8.07%
8.07%
8.20%
8.04%
7.56%
7.65%
7.57%
Others
50.70%
50.43%
44.22%
43.07%
40.45%
40.12%
40.76%
42.08%
42.66%
43.80%
2.18%
48.69%
2.30%
2.29%
2.06%
2.30%
2.25%
2.22%
2.30%
2.07%
1.99%
No. of Shareholders
2,21,107
2,23,309
2,55,720
2,42,376
2,63,803
2,55,300
2,59,271
2,46,788
2,32,715
2,46,769
2,43,445
2,57,794
2,55,500
2,67,694
3,10,403
4,03,669
4,59,605
4,51,929
4,49,216
4,55,243
4,49,665

Documents

Frequently Asked Questions about Dr Reddys Laboratories Ltd

What does Dr Reddys Laboratories Ltd do?
Dr. Reddy's Laboratories Ltd is a leading India-based pharmaceutical company which offers a portfolio of products and services, including Active Pharmaceutical Ingredients (APIs), Custom Pharmaceutical services (CPS), generics, biosimilars and differentiated formulations.
Where is Dr Reddys Laboratories Ltd (DRREDDY) listed?
Dr Reddys Laboratories Ltd is listed on the Indian stock exchanges. It is listed on NSE: DRREDDY and BSE: 500124. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Dr Reddys Laboratories Ltd belong to?
Dr Reddys Laboratories Ltd operates in the Healthcare sector within the Pharmaceuticals & Biotechnology industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Dr Reddys Laboratories Ltd?
Dr Reddys Laboratories Ltd has a market capitalisation of approximately ₹113302.79 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Dr Reddys Laboratories Ltd?
The Price-to-Earnings (PE) ratio of Dr Reddys Laboratories Ltd is 26.86. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Dr Reddys Laboratories Ltd?
Over the past 52 weeks, Dr Reddys Laboratories Ltd has traded between a low of ₹1,148.4 and a high of ₹1,375.9. This range helps investors understand the stock's price volatility and recent trading levels.
Does Dr Reddys Laboratories Ltd pay dividends?
Yes, Dr Reddys Laboratories Ltd has a dividend yield of 0.60%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Dr Reddys Laboratories Ltd?
Dr Reddys Laboratories Ltd has a Return on Equity (ROE) of 19.74%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Dr Reddys Laboratories Ltd on Tapetide?
On Tapetide, you can view Dr Reddys Laboratories Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Dr. Reddy's Laboratories Ltd is a leading India-based pharmaceutical company which offers a portfolio of products and services, including Active Pharmaceutical Ingredients (APIs), Custom Pharmaceutical services (CPS), generics, biosimilars and differentiated formulations.

Website drreddys.com
CEO Mr. Gunupati Venkateswara Prasad B.E.
Employees 27,811
Listed 2003-05-30
Face Value ₹ 1
Issued Size 83,46,30,355

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