Dr. Reddy's Laboratories Limited
Valuation (90/100) does the heavy lifting; financial trend (0/100) is the drag.
Buy zoneStocksWizard rates Dr. Reddy's Laboratories Limited a Hold, scoring 46/100 on our blended model. At ₹1,148.1 it trades below our blended DCF and relative-multiples fair value of ₹2,052.03, about 79% upside to that estimate — we read it as undervalued by 79%. On 25.8x trailing earnings it sits cheaper than the Healthcare median of about 37.6x. It's sitting close to its 52-week low of ₹1,135.6. Financial health scores 100/100, in the safe band on the Altman Z-score, with a Piotroski F-score of 3/9. The average analyst target of ₹1,335.36 implies about 16% upside across 39 analysts. It clears 7 of 13 investability checks, with durability 47, valuation 79 and momentum 24 on our 0–100 scales.
Analysis by Ankit Sharma · StocksWizard's own estimates from end-of-day public data — see how we calculate them. For information only, not investment advice.
With a 20% margin of safety, our buy-below price is ₹1,641.62.
Analyst views
1-year price
EOD · 2026-07-3152-week range
-16.02% from the 52-week high.
Price above both moving averages reads as an intact uptrend; below both, the trend is against you.
Verdict pillars
Hold46Piotroski F-score 3/9 — quality of earnings & balance sheet.
Our scores
Durability rewards strong, low-debt, profitable businesses; Valuation rewards stocks cheap vs their sector; Momentum rewards strong price trends.
Investability checklist
- Fail: ROE above 15%: 11.8%
- Pass: Low debt (D/E < 0.5): 0.20x
- Pass: Positive free cash flow
- Fail: Revenue growth > 10%: -12%
- Fail: Earnings growing: -86%
- Pass: Net margin ≥ 10%: 12.8%
- Pass: Current ratio > 1.5: 1.80
- Pass: Below our fair value
- Pass: Margin of safety ≥ 20%
- Fail: Above 200-day average
- Fail: Above 50-day average
- No data: Positive 1-year return
- Pass: Altman Z in safe zone: Z 5.05
- Fail: Piotroski ≥ 7: 3/9
Quarterly results
Annual financials
Shareholding
- Promoter29.8%
- Institutions53.8%
- Public & other16.4%
Promoter holding via insider stake; institutional via reported holdings.
Key fundamentals
Bull case vs bear case
Bull case
Strengths
- Lightly leveraged balance sheet.
- Financially solid — Altman Z 5.05.
Opportunities
- Trading in our value buy zone versus sector peers.
- Trades ~79% below our estimated fair value.
Bear case
Weaknesses
- Price below its 200-day moving average (downtrend).
- Weak Piotroski score (3/9).
Threats
- Earnings contracting year on year.
About Dr. Reddy's Laboratories Limited
Dr. Reddy's Laboratories Limited is an integrated pharmaceutical company operating across North America, Europe, India, Russia, and other international markets. Its business segments include Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and other operations.
Dr. Reddy's Laboratories Limited — frequently asked questions
Is Dr. Reddy's Laboratories Limited a buy, hold or sell?
StocksWizard currently rates Dr. Reddy's Laboratories Limited (DRREDDY) a Hold, based on a blended score of 46/100 across valuation, quality, momentum and price trend. This is our own model-based view, not investment advice.
What is Dr. Reddy's Laboratories Limited's fair value?
Our blended DCF and relative-valuation model estimates Dr. Reddy's Laboratories Limited's fair value at about ₹2,052.03, versus a current price of ₹1,148.1 — roughly 79% upside. On that basis the stock looks undervalued by 79%.
Is Dr. Reddy's Laboratories Limited financially healthy?
Dr. Reddy's Laboratories Limited scores 100/100 on our financial-health model, placing it in the safe band on the Altman Z-score, with a Piotroski F-score of 3/9.
How has Dr. Reddy's Laboratories Limited's share price performed?
Dr. Reddy's Laboratories Limited is down 9% over three months, and last traded at ₹1,148.1. Past performance doesn't predict future returns.
More in Healthcare
View allOur verdict, fair value, financial-health and checklist are StocksWizard's own estimates, computed from public end-of-day data using standard models (DCF, relative valuation, Altman Z, Piotroski). For information only — not investment advice or a recommendation. Verify independently before investing.