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Dr. Reddys Laboratories Ltd (DRREDDY)

Share Analysis – Quality, Valuation Zone, Price Trend & DeciZen Rating BSE: 500124 NSE: DRREDDY Pharmaceuticals & Drugs | Mid Cap | Dr. Reddys Labs. Share Price

₹1,346.25 6.90 (0.52%)

As on 02-Jul'26 16:59

Dr. Reddys Laboratories Ltd (DRREDDY)

Share Analysis – Quality, Valuation Zone, Price Trend & DeciZen Rating BSE: 500124 NSE: DRREDDY Pharmaceuticals & Drugs | Mid Cap | Dr. Reddys Labs. Share Price

₹1,346.25 6.90 (0.52%)

As on 02-Jul'26 16:59

Key Metrics
Valuation Multiples
Market Cap
₹1,12,368 Cr.
Current Price
₹1,346.3
52-Week Low / High
₹1,149 / 1,414
TTM EPS
₹50.3
TTM Sales
₹33,700 Cr.
Book Value per Share
₹452.2
P/E Ratio
26.78
Higher than its 5-year historical median
Industry PE
49.2
Price to Book (P/B)
2.98
Lower than its 5-year historical median
Price to Sales (P/S)
3.33
In line with its 5-year historical median
EV/EBITDA
14.95
Higher than its 5-year historical median
Dividend Yield
0.59%
Profitability Efficiency
Return on Equity (ROE)
11.69%
Underperforms industry median
Return on Capital Employed (ROCE)
13.75%
Underperforms industry median
Return on Assets (ROA)
8.03%
Operating Profit Margin
19.1%
Net Profit Margin
12.34%
Gross Profit Margin
22.1%
Growth Momentum
1-yr vs 3-yr growth
Sales Growth (1 Year)
Slowing versus 3-year growth rate
3.24%
Operating Profit Growth (1 Year)
Slowing versus 3-year growth rate
-24.49%
Net Profit Growth (1 Year)
Slowing versus 3-year growth rate
-27.38%
Asset Quality
Promoter Holding
26.63%
Pledged shares (%) of Promoter's holding (%)
0.00%
Reserves
₹37,659 Cr.
Equity
₹83.5 Cr.
Face Value
₹1
All Time Low / High
₹1.25 / 1420.20

Dr. Reddys Laboratories stock performance

Key Ratios
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Check Before You Invest

Valuation

Fair

Price Trend

Semi Strong
Q.1 Is Dr. Reddys Laboratories Ltd a good quality company?
Dr. Reddys Laboratories Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

How does Dr. Reddys Laboratories Ltd performance compare with that of its Peers?
Q.1 Revenue growth of Dr. Reddys Laboratories Ltd vs industry peers?
Dr. Reddys Laboratories Ltd revenue CAGR is 13.26%, compared to the industry median CAGR of 9.13%, indicating faster growth and gaining its market share.
Q.1 Promoter shareholding and pledge status of Dr. Reddys Laboratories Ltd?
Promoters hold 26.63% of the Dr. Reddys Laboratories Ltd, with 0.00% of their stake pledged, indicating no pledge risk.
Q.1 Stock return of Dr. Reddys Laboratories Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 8.1% based on the current price.

DeciZen - make an informed investing decision on Dr. Reddys Labs.

Decision Maker
Consolidated basis

1. Right Stock

10 Year X-ray Pro
Long Term Prospect

2. Right Price

3. Right Time

#Likely Future 5 Year CAGR.

10 Year X-Ray :

Analysis of Financial Track Record (Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end)

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Dr. Reddys Laboratories Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25Mar'26TTM
ROCE % 9.8%8.2%13.7%11.1%15.5%14.6%26.2%26.9%23.3%13.8%-
Value Creation
Index
-0.1-0.30.20.00.40.31.31.41.1NA-

Growth Parameters

Sales 14,19614,28115,44817,51719,04821,54524,67028,01132,64433,70033,700
Sales YoY Gr.-0.6%8.2%13.4%8.7%13.1%14.5%13.5%16.5%3.2%-
Adj EPS 15.711.42223.922.523.753.365.965.446.750.3
YoY Gr.--27%93%8.5%-6.1%5.7%124.6%23.6%-0.8%-28.6%-
BVPS (₹) 146.9150.5168186.5210.5229.2277.8337.2400.5452452.2
Adj Net
Profit
1,2979471,8301,9871,8681,9764,4375,4965,4573,8944,196
Cash Flow from Ops. 2,1441,8032,8702,9843,5702,8115,8884,5434,6435,674-
Debt/CF from Ops. 2.32.81.30.70.91.20.20.411.4-

CAGR

9 Years 5 Years 3 Years 1 Years
Sales 10.1%12.1%11%3.2%
Adj EPS 12.9%15.8%-4.3%-28.6%
BVPS13.3%16.5%17.6%12.9%
Share Price 6.8% 3.8% 9.7% 4.1%

Key Financial Parameters

Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25Mar'26TTM
Return on
Equity %
10.57.613.813.411.210.720.921.317.710.911.1
Op. Profit
Mgn %
17.516.520.614.120.317.526.228.326.219.219.5
Net Profit
Mgn %
8.96.411.911.39.89.21819.616.911.412.5
Debt to
Equity
0.40.40.30.10.20.20.10.10.10.20
Working Cap
Days
212222214207213216212221222239163
Cash Conv.
Cycle
14013713012613213513112813014674

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25Mar'26
Sales14,19614,28115,44817,51719,04821,54524,67028,01132,64433,700
Operating Expenses + 11,72411,93012,27015,04715,17817,77818,32120,07824,09727,247
Manufacturing Costs2,2172,0761,7641,7601,8951,9932,2162,6213,1262,799
Material Costs3,6974,0404,4955,5546,0797,4427,6588,2099,98012,239
Employee Cost 3,1073,2153,3563,3803,6303,8864,6475,0305,5805,991
Other Costs 2,7042,6002,6554,3523,5744,4573,8004,2185,4116,217
Operating Profit 2,4722,3513,1782,4703,8703,7676,3497,9338,5476,454
Operating Profit Margin (%) 17.4%16.5%20.6%14.1%20.3%17.5%25.7%28.3%26.2%19.1%
Other Income + 1721553386212914851,0568941,0971,358
Exceptional Items 0000000000
Interest 637989989796143171283374
Depreciation 1,0271,0771,1351,1631,2291,1651,2501,4701,7042,059
Profit Before Tax 1,5541,3502,3361,8862,8843,0616,0497,2017,6805,393
Tax 297438386-1409328791,5411,6231,9541,235
Profit After Tax 1,2579121,9502,0261,9522,1834,5075,5785,7254,158
PAT Margin (%) 8.9%6.4%12.6%11.6%10.3%10.1%18.3%19.9%17.5%12.3%
Adjusted EPS (₹)15.611.423.524.423.526.254.166.967.850.3
Dividend Payout Ratio (%)25.70%35.10%17%20.50%21.30%22.90%14.80%12%11.80%15.90%

Valuation of Dr. Reddys Labs. - Consolidated

YTD 1Y 3Y 5Y 10Y Max
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YTD 1Y 3Y 5Y 10Y Max
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YTD 1Y 3Y 5Y 10Y Max
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YTD 1Y 3Y 5Y 10Y Max
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Analyst's Notes

data not found
No data found!

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25Mar'26

Equity and Liabilities

Shareholders Fund + 12,18212,48913,94415,49517,51519,06923,14028,12433,40537,743
Share Capital 83838383838383838384
Reserves 12,09912,40613,86115,41217,43218,98623,05728,04033,32237,659
Debt +4,9085,0653,4131,7842,9443,2838671,8714,5917,134
Long Term Debt5452,5092,2001306305751285997861,220
Short Term Debt4,3632,5561,2131,6532,3152,7087391,2723,8055,914
Minority Interest00000000378339
Trade Payables1,0571,3351,3671,5251,8112,2662,2682,6142,6483,038
Others Liabilities 2,9923,1153,3103,2023,2783,8525,3045,1976,5737,651
Total Liabilities 21,13822,00422,03422,00525,54828,47031,58037,80647,59455,904

Fixed Assets

Net Fixed Assets +6,9316,9687,1916,8508,2558,2029,21910,42618,22622,360
Gross Block15,93217,43618,04819,33621,88723,09625,56724,52736,76043,854
Accumulated Depreciation9,00210,46810,85712,48513,63214,89516,34814,10118,53321,494
CWIP 3,3253,4712,9341,5351,5651,2931,0301,4192,4661,460
Investments 2,1102,2982,5872,6782,2122,6164,9864,9314,0515,285
Inventories2,8532,9093,3583,5074,5415,0884,8676,3557,1097,653
Trade Receivables3,7994,0533,9875,0284,9646,6767,2498,0309,04210,123
Cash Equivalents 3872642232052,0792,4191,7301,7282,4603,349
Others Assets 1,7352,0421,7552,2021,9332,1752,4994,9174,2405,674
Total Assets 21,13822,00422,03422,00525,54828,47031,58037,80647,59455,904

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25Mar'26
Cash Flow From Operating Activity + 2,1441,8032,8702,9843,5702,8115,8884,5434,6435,674
PBT 1,5541,3502,3361,8862,8843,0616,0497,2017,6805,393
Adjustment 1,6871,6258352,5632,0872,3341,6961,3651,9622,708
Changes in Working Capital -520-897184-754-829-1841-786-2018-2999-1075
Tax Paid -577-276-484-711-572-744-1,071-2,005-1,999-1,353
Cash Flow From Investing Activity + -1,840-1,488-773-492-2,266-2,639-4,137-4,028-5,808-6,549
Capex -4,089-1,090-623-573-1,248-1,573-1,878-2,635-3,315-3,670
Net Investments 2,187-425-228-21-1,140-1,153-2,337-1,572-2,830-3,032
Others 6127781021228778178337152
Cash Flow From Financing Activity + -369-444-2,133-2,516-30-242-2,686-3761,891829
Net Proceeds from Shares 0000273316811940
Net Proceeds from Borrowing -5221,891-6-2,29260000-0
Interest Paid -92-133-161-161-132-135-185-227-348-444
Dividend Paid -339-332-332-331-415-415-498-665-666-666
Others 584-1,870-1,634268484274-2,0194352,8861,899
Net Cash Flow -65-129-35-241,275-70-936139726-47

Financial Ratio

PARTICULARSMar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25Mar'26
Ratios
ROE (%)10.27.414.7513.7611.8211.9321.3621.7618.6111.69
ROCE (%)9.778.2113.6611.1215.4914.5926.2226.8623.2513.75
Asset Turnover Ratio0.690.660.70.80.80.80.820.810.760.65
PAT to CFO Conversion(x)1.711.981.471.471.831.291.310.810.811.36
Working Capital Days
Receivable Days101.90100.309593.9095.7098.6010399.5095.40103.80
Inventory Days69.6073.607471.5077.1081.6073.7073.1075.3079.90
Payable Days97108109.7095100.10100108.10108.6096.2084.80

Management X-Ray

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Top 5 Mutual Funds Holding

Last Visited Stocks

Announcements

Dr. Reddys Laboratories Ltd FAQs

The current trading price of Dr. Reddys Labs. on 02-Jul-2026 16:59 is ₹1,346.3.

Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 01-Jul-2026 the market cap of Dr. Reddys Labs. stood at ₹1,12,368.2 Cr

The latest P/E ratio of Dr. Reddys Labs. as of 01-Jul-2026 is 34.90.

The latest P/B ratio of Dr. Reddys Labs. as of 01-Jul-2026 is 3.60.

The 52-week high of Dr. Reddys Labs. is ₹1,414.4 and the 52-week low is ₹1,149.

The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Dr. Reddys Labs. is ₹20,533 ( Cr.) .

Past 10 year's financial track record analysis by Moneyworks4me indicates that Dr. Reddys Laboratories Ltd is a good quality company.

The key valuation ratios of Dr. Reddys Laboratories Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Dr. Reddys Laboratories Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

About Dr. Reddys Laboratories Ltd

Dr. Reddy’s Laboratories Limited (Dr. Reddy's) commenced its generics business in India in 1986 and is today a trusted name in the healthcare industry consistently serving the needs of millions of patients with high quality, affordable and innovative medicines across therapy areas. The company’s shares trade on the Bombay Stock Exchange and the National Stock Exchange in India and on the New York Stock Exchange in the United States. The company is a global pharmaceutical company headquartered in Hyderabad, India. Guided by its purpose of Good Health Can't Wait, it is committed to accelerating access to affordable and innovative medicines. Its portfolio spans APIs, generic formulations including biosimilars, OTC products, innovative products, and custom pharmaceutical services, with a focus on key therapeutic areas including gastrointestinal, cardiovascular, and oncology. Its major markets include the USA, India, Russia & CIS, China, Brazil, and Europe.

Business area of the company

The company is a multinational pharmaceutical company that manufactures and markets a wide range of pharmaceutical products and services. Through its businesses - Pharmaceutical Services and Active Ingredients, Global Generics and Proprietary Products - the Company offers a portfolio of products and services, including Active Pharmaceutical Ingredients (APIs), Custom Pharmaceutical Services (CPS), generics, biosimilars and differentiated formulations. The company offers a portfolio of products and services including APIs, generics, branded generics, biosimilars and OTC. Its major therapeutic areas of focus are gastrointestinal, cardiovascular, diabetology, oncology, pain management and dermatology. Its major markets include – USA, India, Russia & CIS countries, China, Brazil and Europe.

Business verticals 

Generics: The company is committed to making medicines more accessible and affordable. Its generics business focuses on delivering products that meet unmet patient needs, supported by a strong pipeline and a sustainable model built on market leadership, innovation, and efficiency.

API & Services: Its API business supports global healthcare by supplying high-quality ingredients to leading pharmaceutical companies. Since 1984, it has combined scientific expertise with reliable manufacturing to serve both its own formulations and those of its partners. Recognised within the industry, it continues to focus on quality, compliance, and long-term collaboration.

Innovative Medicines: The company is committed to expanding access to cutting-edge therapies by working closely with global innovators. Through strategic collaborations, it aims to bring novel treatments to India and other emerging markets, helping patients and healthcare providers address unmet needs and manage diseases better.

Consumer Health: The company made its first foray into the nutrition space in India with a diabetic nutrition supplement, CELEVIDA, in Nov 2019, following which it entered the hospital nutrition segment in July 2020 with CELEVIDA Maxx, in its endeavor to continue making a positive impact on patient lives.

Patient Programs: Empowering patients through support, care, and education. Alivius: An integrated digital cancer care platform designed to support patients and healthcare professionals throughout the treatment journey. It combines remote monitoring, treatment management, and mental health support into a seamless experience, helping patients track their health, manage side effects, and access personalized resources. With clinically validated tools and real-time alerts, Alivius enhances care coordination, empowers informed decision-making, and improves overall quality of life for cancer patients across multiple geographies. Joint Health Revolution: The program supports people living with osteoarthritis by helping them understand how to care for their joints. These doctor-led sessions help patients learn about the right exercises, healthy habits, and ways to manage pain, and stay active.

Healthcare professionals programs: The company conducts across the world for healthcare professionals. MedEngage: An education ecosystem for healthcare professionals, built to support learning, collaboration, and clinical excellence. It includes region-specific platforms like DocVidya in India, MedEnrich in Spain, Medepro in South Africa, and Medznat in Russia. Each one is tailored to local needs while offering trusted, evidence-based content. Through certified courses, expert webinars, and interactive communities, MedEngage helps doctors stay updated, upskill, and deliver better care. Medenrich: A video-based medical learning platform that gives short, expert-led content for busy healthcare professionals. It features trusted insights from global and local experts to support ongoing learning and better patient care.

Awards & Recognitions

  • 2017: India’s Best Companies to Work For in the Biotechnology and Pharmaceuticals sector by Great Place To Work Institute.
  • ‘Best Places to Work’ in 2017 in New Jersey by NJBIZ.
  • 2018: Global Generics & Biosimilar Award 2018 for CSR initiative of the year
  • 2018: India Pharma Corporate Social Responsibility (CSR) programme of the year Award 2018 by Department of Pharmaceuticals, Government of India.
  • 2018 Dr. Reddy’s ranked among the top 10 in the Forbes China 2018 list of leading Indian Companies in China.
  • 2019: Dr. Reddy’s inclusion in the 2019 Bloomberg Gender-Equality Index.
  • 2019: Global Generics & Biosimilars Award 2019: API supplier of the Year at the 6th Annual Global Generics & Biosimilars Awards.
  • 2019: Winner of Golden Peacock International Award for Sustainability for the year 2019.
  • 2021-22: Bloomberg Gender-Equality Index 2022 - only Indian pharma company in the index; featured for 5th year in a row.
  • 2021-22: CII Industrial Innovation Awards 2021 – Most Innovative Company.
  • 2021-22: Global Generics & Biosimilars Awards 2021 - ‘API Supplier of the Year’ and ‘CSR Initiative of the Year’.
  • 2021-22: CDP Supplier Engagement Leaderboard 2022.
  • Indo-American Chamber of Commerce 2021 – Indian company in the U.S. for excellence in manufacturing.
  • 2022-23: World Economic Forum - Recognised its largest manufacturing facility in Bachupally, Hyderabad as part of its Global Lighthouse Network for deployment of Industry 4.0 technologies.
  • 2022-23: Awarded by the President of India - For its work in the empowerment and employment opportunities for persons with disabilities through Dr. Reddy’s Foundation.
  • 2022-23: Global Generics & Biosimilars Awards 2022 - Recognised as ‘Company of the Year - Americas’.
  • 2022-23: Analytics India Magazine 2022 - Recognised as a ‘Best Firm For Data Scientists.
  • 2022-23: India Risk Management Award 2023 - Recognised as Masters of Risk - Healthcare and Pharma.
  • 2023-24: Received Gold Medal status from EcoVadis in 2023.
  • 2023-24: First Indian pharma company to be included in the Dow Jones Sustainability World Index 2023.
  • 2023-24: warded Excellence in Rural Health Initiative at the - 2023 Economic Times India Pharmaworld Awards.
  • 2023-24: Included in S&P Global’s Sustainability Yearbook 2024 in the Top 10% category.
  • 2023-24: Great Place to Work Certification 2023 – in Colombia, Brazil, China, Malaysia, Thailand, India, Myanmar.
  • 2023-24: Best Patient Support Programme at the - 2023 Silver Feather Awards.
  • 2024-25: 2nd year in a row feature in The Financial Times (London) ‘Asia-Pacific Climate Leader 2024' list.
  • 2024-25: Winner, North America, Candidate Experience Awards 2024.
  • 2024-25: Certified Great Place to Work 2025, and recognised as one of India's Best Employers Among Nation-Builders for 2024.
  • 2024-25: Russian Pharma Awards 2024 for Medznat Portal for HCPs.
  • 2024-25: Winner, AI Pioneer category, LinkedIn Talent Awards.
  • 2024-25: Gold award, Best Market Intelligence / Productivity and Effectiveness Project, Lupa de Ouro Awards Brazil.

Milestones

  • 1984: The birth of a dream.
  • 1991: From molecules to affordable medicines.
  • 1995: Expanding to reach patients in other countries.
  • 2001: Spreading wings globally.
  • 2007: Accelerating access to expensive therapies.
  • 2010: From medicines to health.
  • 2012: Strengthening capabilities.
  • 2014: Re-dedicating to patient-centricity.
  • 2015: Dr. Reddy’s Laboratories signs commercialization deal with Hatchtech.
  • 2016: Dr. Reddy’s completes acquisition of product portfolio from TEVA.
  • 2017: Dr. Reddy's expands commercial operations in Europe.
  • 2018: Dr. Reddy's Laboratories announces the launch of Tetrabenazine Tablets in the U.S. Market.
  • 2019: Dr. Reddy’s Laboratories enters Nutrition Segment with Celevida in India.
  • 2020: Dr. Reddy’s Laboratories joins Science Based Targets initiative (SBTi) and sets 2030 GHG emission targets.
  • 2021: Its focus on agility, access and affordability helped it reach over 5 million patients during the pandemic, especially in low and middle income countries.
  • 2021: the company played its part along with the rest of the pharma industry in the fight against COVID-19.
  • 2021: The company combined in-house efforts with open-innovation partnerships to provide a portfolio that included a vaccine and therapeutics for COVID-19.
  • 2022: Launched Lenalidomide capsule in the U.S., with two of the six strengths eligible for first-to-market, 180-day exclusivity.
  • 2022: Its Hyderabad facility was recognised by the World Economic Forum as part of its Global Lighthouse Network for Industry 4.0 leadership.
  • 2023: The company became the first Indian pharma company to debut on the Dow Jones Sustainability World Index.
  • 2024: the company partnered with Nestlé India to launch nutritional health solutions in India and other regions.
  • 2024: The company Signed a definitive agreement with Haleon Plc to acquire Nicotinell and its Nicotine Replacement Therapy portfolio.
  • 2024: the company acquired Menolabs' women's health and dietary supplements portfolio from Amyris Inc. including seven products for perimenopause and menopause support.
  • 2025: Dr. Reddy’s arm inks commercialization and license agreements for biosimilars.
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