Dr. Reddy's Laboratories Ltd.
Pharma · NSE
52-week range
₹1,122 – ₹1,376
From 52w high
-6.0%
RSI (14)
52.2
vs SMA 50 / 200
↑ 50 · ↑ 200
Dr. Reddy's Laboratories (DRREDDY) trades at ₹1,293.90, up 12.21% over 12 months and above both its 50-DMA (₹1,277.62) and 200-DMA (₹1,258.56). Trailing PE of 19.06 is the lowest among six tracked Pharma peers, while 5-year earnings CAGR of -14.3% and rising debt-to-equity of 18.03 reflect a company navigating a period of profitability pressure. Q4FY26 results are due May 12, 2026, making near-term data a key reference point.
- ✓Trailing PE of 19.06 ranks 1st (lowest) among 6 Pharma peers, including Sun Pharma (40.59), Divi's (71.88), and Max Healthcare (69.48) — a notable valuation gap to sector.
- ✓Stock is above both 50-DMA (₹1,277.62) and 200-DMA (₹1,258.56) with RSI at 52.21 (neutral), and the 52-week drawdown is limited to -5.96% from the high.
- ✓FCF was positive in 4 of the available history years, indicating the business has generated cash in most recent periods despite earnings pressure.
- ✓Revenue has grown at a 5-year CAGR of 4.4%, providing a top-line base even as margins and earnings have compressed over the same period.
- ✗5-year earnings CAGR of -14.3% reflects a sustained decline in profitability; ROE has cleared 15% in only 3 of the reported years.
- ✗Debt-to-equity of 18.03 is elevated and the debt trend is classified as rising, a combination that adds financial risk in a period of declining earnings.
- ✗Quality score of 32 ranks 5th out of 6 peers in the Pharma cohort, with sector peers ranging from 30 (Cipla) to 54 (Max Healthcare).
- ✗Forward PE of 23.52 exceeds the trailing PE of 19.06, indicating the current price embeds an earnings recovery expectation that the historical 5-year trend has not corroborated.
- ·Q4FY26 results are scheduled for May 12, 2026; an EPS estimate of ₹13.28 per share has been reported, and the outcome will be a near-term data point on whether the earnings trajectory is stabilising.
- ·DRREDDY's semaglutide regulatory approval in Canada attracted attention in late April 2026 but was followed by cautious commentary from brokerages on its near-term revenue contribution, with the stock initially hitting a 10% upper circuit before retracing.
- ·The board is considering a final dividend for FY2025-26, which management would typically flag when balance-sheet confidence is sufficient to sustain a distribution despite the rising debt trend.
- ?Does the -14.3% five-year earnings CAGR reflect structural margin erosion in Dr. Reddy's core generics business, or is it driven by one-off events such as product launches, pricing pressure in the US, or currency effects that may not persist?
- ?How does the rising debt-to-equity of 18.03 map to the company's specific capital allocation priorities — R&D pipeline, acquisitions, or working capital — and what is management's stated target leverage range?
- ?Given that peer ROE and price-return data are unavailable in this dataset, how does DRREDDY's 16.1% ROE and 12.21% 1-year price change compare to SUNPHARMA, CIPLA, and DIVISLAB on a like-for-like basis?
- ?The semaglutide Canada approval was a news catalyst in April 2026 — what is the estimated addressable market size for that product in Canada relative to Dr. Reddy's total revenue base, and how has the company's track record been on similar international regulatory approvals?
PE
19.1
Forward PE
23.5
ROE
+16.1%
Profit margin
+16.4%
D/E
18.03
Dividend yield
+0.6%
Quality score
32/100
ROE 5y above 15%
3/5 yrs
FCF 5y positive
4/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 10 May 2026.