Dr. Reddy's Laboratories Ltd.
NSE: DRREDDYDr. Reddy's Laboratories Ltd.: A 30-second snapshot
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.
P/E
30.3
Forward P/E
20.3
ROE
+8.8%
Debt / Equity
18.61
Profit Margin
+10.0%
Div. Yield
+0.7%
5Y ROE > 15%
3/5
5Y FCF > 0
4/5
Quality
33/100
News
8 headlines · 1 positive · 6 negative
Dr Reddy's Laboratories Ltd (RDY) Q1 2027 Earnings Call Highlights: Navigating Challenges and ... - finance.yahoo.com
finance.yahoo.com
Dr. Reddy's Laboratories Limited Just Missed EPS By 29%: Here's What Analysts Think Will Happen Next - simplywall.st
simplywall.st
Indian drugmaker Dr Reddy's slips on margin, semaglutide supply woes - Reuters
Reuters
Dr Reddy's Q1 Results: Profit Plummets Two-Third As Margins Shrink, Revenue Falls 6% - NDTV Profit
NDTV Profit
Dr. Reddy's Q1 FY27 Results: PAT Declines 69% YoY - Sahi
Sahi
Recent context
- ·Q1 FY27 results reported profit down roughly 69% YoY on a 6% revenue decline, per NDTV Profit (Jul 22, 2026) and Sahi (Jul 22, 2026).
- ·Reuters (Jul 23, 2026) attributed the share-price move to margin pressure and semaglutide-supply issues.
- ·simplywall.st (Jul 25, 2026) noted an EPS miss of approximately 29% versus estimates.
Strengths
- +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.
Weaknesses
- −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%.
Open questions
- ?Does the 33% gap between trailing PE (30.31) and forward PE (20.29) reflect embedded assumptions about near-term earnings that differ from the realized 5-year earnings trend of -68.7%?
- ?What is driving the margin and semaglutide-supply issues cited in recent coverage, and are they structural or transitory?
- ?How does the rising debt trend noted in the persistence data square with the currently low absolute debt-to-equity level (~0.19x)?
- ?What would a return of ROE toward the 15% threshold require, given it was met in only 3 of the tracked years?
Peer comparison: Pharma
Ranks 6 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| DRREDDY | Dr. Reddy's Laboratories Ltd.You're viewing | 30.3 | +8.8% | 4 |
| Industry avg | across 5 peers | 59.5 | +17.9% | 45 |
| SUNPHARMA | Sun Pharmaceutical Industries Ltd. | 38.6 | — | 57 |
| DIVISLAB | Divi's Laboratories Ltd. | 88.3 | — | 57 |
| APOLLOHOSP | Apollo Hospitals Enterprise Ltd. | 65.0 | +21.5% | 44 |
| MAXHEALTH | Max Healthcare Institute Ltd. | 70.5 | +14.3% | 37 |
| CIPLA | Cipla Ltd. | 35.1 | — | 28 |
Technical state
Current price
₹1,205.00
SMA 50
₹1,247.01
SMA 200
₹1,252.45
RSI (14)
50.9 (neutral)
From 52w high
-14.3%
1Y return
+1.0%
3M return
-9.3%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- high5-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 of 100. Quality score of 4 ranks last (6 of 6) among tracked Pharma peers, whose scores range 28-57 (Cipla, Max Healthcare, Apollo Hospitals, Sun Pharma, Divi's Labs). Debt trend is flagged rising, though the absolute level remains low once the reported debt-to-equity of 18.605 is de-scaled from percent to multiple (~0.19x).
- mediumOf 8 tracked news items, 6 are classified negative, 1 neutral and 1 positive (overall label: negative). Recent headlines cite a Q1 FY27 EPS miss of about 29% (simplywall.st, Jul 25, 2026), Reuters coverage (Jul 23, 2026) of the stock slipping on margin and semaglutide-supply issues, and profit falling roughly two-thirds YoY on a 6% revenue decline (NDTV Profit, Jul 22, 2026).
- mediumCurrent price of Rs 1,205 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 and down 9.28% over the past 3 months, though roughly flat (+0.99%) over the past year. RSI of 50.89 is neutral. Nearest tracked support (Rs 1,160.14) is roughly 3.7% below the current price.
- lowSector peer set is limited to 5 names, and priceChange1Y is unavailable (null) for every tracked peer, constraining relative price-performance comparison. Only 5 of the 8 tracked news items are itemized in the headline set.
Cross-section contradictions
- Forward PE of 20.29 is about 33% below the trailing PE of 30.31, implying the market is pricing a higher near-term earnings base than trailing levels - a contrast with realized 5-year earnings growth of -68.7% and a consistency score of 40/100.
- Mean analyst rating of 2.79 across 39 analysts (1-5 scale, lower = more constructive) sits near the midpoint of the scale despite the quality score ranking last (6 of 6) among tracked Pharma peers and a Q1 FY27 profit decline of roughly two-thirds YoY reported in recent headlines.
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.
Fundamentals & technicals: refreshed 11 Aug 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 12 Aug 2026 · rotates through NIFTY 500 every ~5 days