DRREDDY vs SUNPHARMA
Side-by-side comparison of Dr. Reddy's Laboratories Ltd. and Sun Pharmaceutical Industries Ltd.. Descriptive only — not investment advice.
Dr. Reddy's Laboratories Ltd.
Pharma
Quality Score: 33/100
Sun Pharmaceutical Industries Ltd.
Pharma
Quality Score: 73/100
At a glance
| Metric | DRREDDY | SUNPHARMA |
|---|---|---|
| Quality Score | 33/100 | 73/100 |
| P/E (trailing) | 30.3 | 38.6 |
| Forward P/E | 20.3 | 29.6 |
| ROE | +8.8% | — |
| Profit margin | +10.0% | +20.2% |
| Debt-to-equity | 18.61 | 5.52 |
| Dividend yield | +0.69% | +0.82% |
| 1Y price return | +1.0% | +20.3% |
| From 52w high | -14.3% | -5.0% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 2.79 | 1.76 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
Dr Reddy's Laboratories trades at Rs 1,205, down 14.29% from its 52-week high and 9.28% lower over the past 3 months, though roughly flat (+0.99%) over the past year. Trailing PE is 30.31 against a forward PE of 20.29, while ROE of 8.84% sits alongside 5-year earnings growth of -68.7% and revenue growth of -5.6%. Tracked news flow over the period skews negative (6 of 8 items), largely tied to a weak Q1 FY27 print.
Sun Pharma trades at Rs 1,945, up 20.26% over the past year and 6.87% over three months, sitting 4.98% below its 52-week high and above both its 50-day (1,885.96) and 200-day (1,775.23) moving averages, with RSI at a neutral 52.1. Q1 FY27 profit rose 27% year-over-year to Rs 2,894 crore on 10.5% revenue growth, alongside continued progress on the proposed Organon merger, which cleared Organon shareholder approval on July 24, 2026. Trailing PE is 38.6x (forward 29.6x) against a Pharma peer set spanning 29.5x (Dr. Reddy's) to 85.5x (Divi's Labs).
Pros
- ✓Trailing PE of 30.31 is the lowest among tracked Pharma peers (Cipla 35.10, Sun Pharma 38.56, Apollo Hospitals 65.03, Max Healthcare 70.51, Divi's Labs 88.34), ranking 1 of 6 on this metric.
- ✓Forward PE of 20.29 is about 33% below the trailing PE, reflecting a different earnings base than the trailing-twelve-month figure.
- ✓Free cash flow was positive in 4 of the tracked years per the persistence data.
- ✓Dividend yield of 0.69% has been maintained alongside the reported revenue and earnings contraction.
- ✓Price sits above both the 50-day (1,885.96) and 200-day (1,775.23) simple moving averages, up 20.26% over 12 months and 6.87% over 3 months, only 4.98% below its 52-week high.
- ✓Q1 FY27 net profit rose 27% year-over-year to Rs 2,894 crore, with a 20.19% profit margin and 10.5% revenue growth.
- ✓Free cash flow was positive in 4 of the tracked years, debt trend is described as falling, and the quality score of 57 ranks 1st of 6 among the Pharma peers tracked.
- ✓Mean analyst rating of 1.76 across 33 analysts (1-5 scale, lower = more constructive); 7 of the 8 most recent news items carry positive sentiment.
Cons
- ✗5-year earnings growth of -68.7% and 5-year revenue growth of -5.6% mark sustained top- and bottom-line contraction; ROE of 8.84% met the 15% threshold in only 3 of the tracked years and the consistency score is 40/100.
- ✗Quality score of 4 ranks last (6 of 6) among tracked Pharma peers, whose scores range 28-57.
- ✗Price sits below both the 50-DMA (Rs 1,247.01) and 200-DMA (Rs 1,252.45), down 14.29% from the 52-week high.
- ✗Tracked news sentiment is negative (6 of 8 items), concentrated around a Q1 FY27 profit decline of roughly two-thirds YoY and an EPS miss of about 29%.
- ✗Current-period ROE is not reported; only 3 of the tracked years show ROE above 15% (consistency score 73/100), a softer read than the 27.4% five-year earnings growth alone would suggest.
- ✗A Moneycontrol report on the July 31, 2026 Q1 print described revenue and profit as coming in below analyst estimates, even as the same quarter's 27% year-over-year profit growth was reported positively elsewhere.
- ✗The proposed Organon merger cleared shareholder approval on July 24, 2026, but deal financing structure, closing timeline and integration detail are not present in the available data.
- ✗Trailing PE of 38.6x sits above 3 of the 5 tracked Pharma peers (Dr. Reddy's 29.5x, Cipla 35.1x, Apollo Hospitals 66.2x), though below Max Healthcare (72.4x) and Divi's Labs (85.5x).
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