Dr. Reddy's Laboratories Ltd. (DRREDDY) AI Stock Analysis

• Market Cap: ₹1.09T
• Dividend Yield: 0.6%
• Average Volume (3M): 87.64K
• Price to Earnings (P/E): 19.2
• Beta (1Y): 0.74
• Revenue Growth: 15.86%
• EPS Growth: 2.02%
• Country: IN
• Employees: 27,048
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 17.02
• Shares Outstanding: 834,568,240
• 10 Day Avg. Volume: 71,797
• 30 Day Avg. Volume: 87,639
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,243.11
• Price Target Upside: -6.02% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 76 Outperform
• Price Target: ₹1,462.00 ▲(10.53% Upside)

Dr. Reddy's Laboratories demonstrates strong financial performance and strategic growth, particularly in the biosimilar segment. Despite challenges in the U.S. generics market and regulatory issues, the company's robust balance sheet and positive market momentum support a favorable outlook.

Dr. Reddy's Laboratories Ltd. Business Overview & Revenue Model

Company Description

Dr. Reddy's Laboratories Limited, together with its subsidiaries, operates as an integrated pharmaceutical company worldwide. It operates through Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), Proprietary Products, and Others segments. The company's Global Generics segment manufactures and markets prescription and over-the-counter finished pharmaceutical products that are marketed under a brand name or as a generic finished dosages with therapeutic equivalence to branded formulations. This segment also engages in the biologics business. The PSAI segment manufactures and markets active pharmaceutical ingredients and intermediates, which are principal ingredients for finished pharmaceutical products. This segment also provides contract research services; and manufactures and sells active pharmaceutical ingredients and steroids in accordance with the specific customer requirements. Its Proprietary Products segment focuses on the research and development of differentiated formulations. The Others segment engages in developing therapies in the fields of oncology and inflammation. The therapeutic categories primarily include gastro-intestinal, cardiovascular, anti-diabetic, dermatology, oncology, respiratory, stomatology, urology, and nephrology. The company has a collaboration, license, and option agreement with Curis, Inc. to discover, develop, and commercialize small molecule antagonists for immuno-oncology and precision oncology targets. Dr. Reddy's Laboratories Limited was incorporated in 1984 and is headquartered in Hyderabad, India.

How the Company Makes Money

Dr. Reddy's Laboratories generates revenue through multiple streams. The primary source of income is the sale of generic pharmaceuticals, which the company develops, manufactures, and markets globally. This includes a wide range of therapeutic areas such as oncology, gastroenterology, cardiovascular, pain management, and dermatology. Another significant revenue stream is the production and sale of active pharmaceutical ingredients (APIs) used in the manufacturing of generic and branded drugs by other pharmaceutical companies. Dr. Reddy's also invests in research and development for biosimilars and proprietary products, which provide additional revenue opportunities. Strategic partnerships and collaborations with other pharmaceutical companies further enhance its market presence and contribute to its earnings. The company's focus on cost-effective production and extensive distribution network also supports its financial performance.

Dr. Reddy's Laboratories Ltd. Financial Statement Overview

Summary

Dr. Reddy's Laboratories shows strong financial health with consistent revenue growth and solid profitability. The balance sheet is stable with low financial leverage, though there's room for operational efficiency improvements.

Income Statement

Dr. Reddy's Laboratories has demonstrated strong income statement performance with consistent revenue growth, achieving a Revenue Growth Rate of 11.4% TTM. The Gross Profit Margin improved to 57.6% TTM, indicating effective cost management. However, slight declines in EBIT and EBITDA margins to 21.4% and 28.2% respectively, from the previous year, suggest room for operational efficiency improvements.

Balance Sheet

The company maintains a solid balance sheet with a manageable Debt-to-Equity Ratio of 0.14 TTM, reflecting low financial leverage. The Return on Equity is robust at 16.2% TTM, showcasing effective use of equity capital. The Equity Ratio of 67.4% TTM indicates a stable capital structure, though a higher debt level compared to 2024 suggests increased leverage risk.

Cash Flow

Cash flow analysis shows robust Free Cash Flow generation with a growth rate of -4.8% TTM, reflecting stable cash generation capabilities. The Operating Cash Flow to Net Income ratio of 0.93 TTM indicates strong cash conversion efficiency. Despite a slight reduction in Free Cash Flow, the firm effectively supports its operations and investments.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	334.26B	325.54B	279.16B	245.88B	214.39B	189.72B
Gross Profit	192.71B	190.43B	163.61B	139.34B	113.84B	103.08B
EBITDA	94.14B	91.61B	88.28B	74.06B	44.38B	39.70B
Net Income	56.80B	56.54B	55.68B	45.07B	23.57B	17.24B
Balance Sheet
Total Assets	519.54B	492.99B	387.52B	322.85B	296.65B	265.49B
Cash, Cash Equivalents and Short-Term Investments	66.69B	57.91B	81.47B	61.80B	44.37B	34.57B
Total Debt	48.64B	46.77B	20.02B	13.47B	33.84B	30.31B
Total Liabilities	165.78B	155.82B	106.97B	89.99B	106.13B	90.51B
Stockholders Equity	350.06B	333.39B	280.55B	230.99B	190.53B	173.06B
Cash Flow
Free Cash Flow	18.02B	18.92B	18.00B	40.01B	9.06B	23.14B
Operating Cash Flow	52.56B	46.43B	45.43B	58.87B	28.11B	35.70B
Investing Cash Flow	-49.97B	-51.02B	-40.28B	-41.37B	-26.39B	-22.66B
Financing Cash Flow	1.11B	11.86B	-3.76B	-26.86B	-2.42B	-298.00M

Dr. Reddy's Laboratories Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1322.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DRREDDY, the sentiment is Positive. The current price of 1322.7 is above the 20-day moving average (MA) of 1285.30, above the 50-day MA of 1264.04, and above the 200-day MA of 1236.94, indicating a bullish trend. The MACD of 16.45 indicates Negative momentum. The RSI at 63.20 is Neutral, neither overbought nor oversold. The STOCH value of 92.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:DRREDDY.

Dr. Reddy's Laboratories Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DRREDDY	76 Outperform	₹1.09T	19.25		0.60%	15.86%	2.02%
AUROPHARMA	76 Outperform	636.70B	18.77	10.68%	0.35%	7.76%	-2.84%
CIPLA	73 Outperform	1.26T	23.35	16.90%	0.83%	6.40%	25.27%
TORNTPHARM	73 Outperform	1.20T	59.91	25.17%	0.90%	7.63%	15.39%
LUPIN	72 Outperform	927.74B	25.05	19.08%	0.59%	12.40%	63.16%
ZYDUSLIFE	72 Outperform	1.04T	22.77	18.89%	1.05%	14.52%	9.46%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Dr. Reddy's Laboratories Ltd. Corporate Events

Dr. Reddy’s Laboratories Releases Q1 FY26 Earnings Call Transcript

Dr. Reddy’s Laboratories Ltd. has released the transcript of its earnings call for the quarter ended June 30, 2025. The call, conducted on July 23, 2025, provides insights into the company’s financial performance and strategic direction. This release is part of their compliance with regulatory requirements and aims to keep stakeholders informed about the company’s operations and market positioning.