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Dr. Reddy's Laboratories Limited (RDY) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Dr. Reddy's Laboratories Limited

RDYMarket cap $10BPrice $12.3

Country🇮🇳India

SectorHealthcare

IndustryPharmaceuticals

Manufactures generic drugs and active pharmaceutical ingredients sold in over 100 countries, making cancer and cardiovascular treatments affordable at scale. One of the first Indian drugmakers to crack the tough US generics market.

In Bastion Portfolios?

52W Return-15%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+6%5

Revenue Forecast

Rev CAGR (1y)+1%3

Rev CAGR (3y)+9%6

Rev CAGR (5y)+8%6

Earnings Forecast

EPS Growth Y+1-19%2

EPS Growth Y+2+36%9

EPS Growth Y+3+16%8

Quality

Margins

EBIT Margin11%5

Net Income Margin10%6

Free Cash Flow Margin6%5

Debt

Net Debt/EBITDA-0.210

Efficiency

ROE9%4

ROA6%7

Earnings Stability55

GEAR+AVERAGE61

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)243

P/E Ratio (Forward 3y)174

P/BV2.65

EV Multiples

EV/EBITDA Fwd163

EV/EBIT Fwd253

Yield

Free Cash Flow Yield2.1%4

Dividend Yield0.5%2

Momentum

Short term

1 month return+3%9

3 month return-13%3

YTD return-12%3

Mid term

Price vs 52wHigh79%5

1 year return-12%3

Long term

3 year return-6%2

5 year return-2%3

Risk Shield

Price Risk

Beta0.29

Volatility28%8

Free Cash Flow

Free Cash Flow Margin6%5

Free Cash Flow Yield2.1%4

Quality

ROCE9%5

Earnings Stability55

Net Debt/EBITDA-0.210

02Growth

Is it actually growing, and how fast?

RDYDr. Reddy's Laboratories

Revenue FY26$3.6B

GROWTH RATING↗

AVERAGE50 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+6%5

Revenue, next 1Y+1%3

Revenue, next 3Y, CAGR+9%6

Revenue, next 5Y, CAGR+8%6

EARNINGS FORECAST▾SCORE

EPS growth, FY27E-19%2

EPS growth, FY28E+36%9

EPS growth, FY29E+16%8

GROWTH ASSESSMENT

STRENGTHS

None flagged.

WATCH

A mid-pack grower, ahead of 50% of companies worldwide.

Revenue is set to grow 9%/yr over the next 3 years, in line with the market.5/10

Revenue grew 6%/yr over the last 3 years and is set to keep growing around 9%/yr.

Over five years revenue is set to grow 8%/yr, ahead of 50% of companies worldwide.6/10

Earnings are set to grow faster than sales (EPS about 16%/yr vs revenue 9%/yr), so margins should widen. One year dips: EPS falls 19% next year.

WEAKNESSES

None flagged.

BOTTOM LINE

Steady Grower

A middle-of-the-pack grower. The one thing to watch: forward revenue growth is only about average.

03Price Momentum

Is the market behind it right now?

RDYDr. Reddy's Laboratories

Total return Current61.3%

Price return Current52.8%

MOMENTUM RATING↗

WEAK27 / 100

SHORT-TERM RETURNS▾SCORE

1-month return+3%9

3-month return-13%3

YTD return-12%3

MID & LONG-TERM▾SCORE

% of 52-week high79%5

1-year return-12%3

3-year return-6%2

5-year return-2%3

MOMENTUM ASSESSMENT

STRENGTHS

Strong recent results. The stock is outperforming over the past month (+3%).

WATCH

It's down 12% over the past year, now 21% below its 52-week high. That is a touch behind the market.

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-6.1% over three years and -2% over five), behind 70% of the market.

The stock is underperforming over three months (-13%) and so far this year (-12%).

BOTTOM LINE

Weak Tape

Returns across short and long horizons rank poorly versus the market. Momentum offers no support here; the case has to come from other factors. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Dr. Reddy's Laboratories Limited. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

RDYDr. Reddy's Laboratories

Revenue FY26$3.6B

GROWTH RATING↗

AVERAGE50 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+6%5

Revenue, next 1Y+1%3

Revenue, next 3Y, CAGR+9%6

Revenue, next 5Y, CAGR+8%6

EARNINGS FORECAST▾SCORE

EPS growth, FY27E-19%2

EPS growth, FY28E+36%9

EPS growth, FY29E+16%8

GROWTH ASSESSMENT

STRENGTHS

None flagged.

WATCH

A mid-pack grower, ahead of 50% of companies worldwide.

Revenue is set to grow 9%/yr over the next 3 years, in line with the market.5/10

Revenue grew 6%/yr over the last 3 years and is set to keep growing around 9%/yr.

Over five years revenue is set to grow 8%/yr, ahead of 50% of companies worldwide.6/10

Earnings are set to grow faster than sales (EPS about 16%/yr vs revenue 9%/yr), so margins should widen. One year dips: EPS falls 19% next year.

WEAKNESSES

None flagged.

BOTTOM LINE

Steady Grower

A middle-of-the-pack grower. The one thing to watch: forward revenue growth is only about average.

03Price Momentum

Is the market behind it right now?

RDYDr. Reddy's Laboratories

Total return Current61.3%

Price return Current52.8%

MOMENTUM RATING↗

WEAK27 / 100

SHORT-TERM RETURNS▾SCORE

1-month return+3%9

3-month return-13%3

YTD return-12%3

MID & LONG-TERM▾SCORE

% of 52-week high79%5

1-year return-12%3

3-year return-6%2

5-year return-2%3

MOMENTUM ASSESSMENT

STRENGTHS

Strong recent results. The stock is outperforming over the past month (+3%).

WATCH

It's down 12% over the past year, now 21% below its 52-week high. That is a touch behind the market.

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-6.1% over three years and -2% over five), behind 70% of the market.

The stock is underperforming over three months (-13%) and so far this year (-12%).

BOTTOM LINE

Weak Tape

Returns across short and long horizons rank poorly versus the market. Momentum offers no support here; the case has to come from other factors. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Dr. Reddy's Laboratories Limited. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community