RDY Stock Analysis: Buy, Sell, or Hold?
RDY - Dr. Reddy's Laboratories Limited American Depositary Shares
$13.42
0.15 (1.13%)
▲
BUY
HIGH Confidence
Last Updated: January 30, 2026
Earnings: Jan 22, 2026
0d
Get Alerted When RDY Hits Your Target Price
Join 10,000+ traders who never miss a move
You're in! Check your email to confirm and set your target price.
100% Free
No spam, ever
Unsubscribe anytime
Interactive Price Chart (1 Month)
Loading chart...
Loading historical data...
Bottom Line:
✅ BUY SIGNAL: RDY shows strong fundamentals and good volume confirmation. Solid entry point despite slightly low pricing.
✅ BUY SIGNAL: RDY shows strong fundamentals and good volume confirmation. Solid entry point despite slightly low pricing.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$9.32
Based on -2.0% avg growth
INTRINSIC VALUE TODAY
$5.79
Trading above fair value
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 0.2x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: RDY is currently trading at $13.42, which is considered slightly low relative to its 30-day fair value range of $13.24 to $14.02. From a valuation perspective, the stock is trading at a premium (Forward PE: 0.3) compared to its historical average (0.2). At these levels, the market is pricing in 2.0% annual earnings growth.
Technical Outlook: Technically, RDY is in a downtrend. Immediate support is located at $12.81, while resistance sits at $13.95.
Market Sentiment: The stock shows a mixed technical setup (45/100), with neutral trendline and momentum signals. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, RDY is in a downtrend. Immediate support is located at $12.81, while resistance sits at $13.95.
Market Sentiment: The stock shows a mixed technical setup (45/100), with neutral trendline and momentum signals. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
SLIGHTLY LOW
Fair Price Range
$13.24 -
$14.02
Company Quality Score
57/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
78.1%
All Signals
- BULLISH: Price oversold vs 30-day range
- NEUTRAL: Mixed technical signals (45/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($14.27)
- BULLISH: Expecting earnings turnaround to 2.0% growth with 4.4% revenue growth
Fair Price Analysis
30-Day Fair Range
$13.24 -
$14.02
Current vs Fair Value
SLIGHTLY LOW
Support & Resistance Levels
Support Level
$12.81
Resistance Level
$13.95
Current Trend
Downtrend
Fundamental Context
Forward P/E (Next Year Est.)
0.26
Wall Street Target
$14.27
(+6.4%)
Revenue Growth (YoY)
4.4%
Earnings Growth (YoY)
-14.3%
Profit Margin
16.4%
Valuation Premium vs History
+2.0% premium
PE vs Historical
0.3 vs 0.2
STRETCHED
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+2.0%
(market-implied from PE analysis)
1-Year Target
$13.69
(+2%)
2-Year Target
$13.96
(+4%)
3-Year Target
$14.24
(+6%)
3-Yr Target (if PE normalizes)
(PE: 0→0)
PE COMPRESSION
$11.00
(-18%)
Significant PE compression expected
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.3, Growth: -8.0%)
$899.65
(+6604%)
Base:
(SPY PE: 0.3, Growth: -8.0%)
$10.45
(-22%)
Bear:
(PE: 0.2, Growth: -8.0%)
$8.07
(-40%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (18x PE), but valuation improves significantly next year (0x PE) as earnings recover.
Trailing PE: 18.00 | Current EPS (TTM): $0.74
Bull Case
$29.30
(+118%)
Analyst growth 100.0%, PE expands to 19.8
Base Case
$26.64
(+99%)
Market implied 100.0%, PE stable at 18.0
Bear Case
$9.06
(-33%)
Severe decline -20.0%, PE contracts to 15.3
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Last updated: January 31, 2026 9:56 PM ET
Data refreshes hourly during market hours. Next update: 10:56 PM
Data refreshes hourly during market hours. Next update: 10:56 PM
🔥 Top Stocks Breaking Out Now
| Ticker | Score | Recommendation | Change % |
|---|
Technical Signals Check
Is RDY showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
Top Rated Drug Manufacturers - Specialty & Generic Stocks
Top-rated stocks in Drug Manufacturers - Specialty & Generic by analyst ratings.
| Stock | Analyst Consensus | Analyst Target | Tradestie Score |
|---|---|---|---|
|
NBIX
Neurocrine Biosciences I… |
STRONG BUY
25 analysts |
$179 | 62 BUY |
|
ZTS
Zoetis Inc |
STRONG BUY
19 analysts |
$158 | 56 HOLD |
|
LNTH
Lantheus Holdings Inc |
STRONG BUY
13 analysts |
$84 | 57 HOLD |
|
BCRX
BioCryst Pharmaceuticals… |
STRONG BUY
12 analysts |
$21 | 55 HOLD |
|
HCM
HUTCHMED DRC |
STRONG BUY
14 analysts |
$21 | 57 HOLD |
Advanced RDY Option Strategies
Professional options setups generated by AI based on today's RDY price and gamma walls.
