RDY Stock Analysis: Buy, Sell, or Hold?
RDY - Dr. Reddy's Laboratories Limited American Depositary Shares
$13.20
-0.13 (-0.94%)
▼
5d:
-2.11%
30d:
-7.53%
90d:
-4.8%
HOLD
MODERATE Confidence
Analysis Updated: Apr 2, 2026 12:00 AM ET
Earnings: May 08, 2026
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD: RDY shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
📊 HOLD: RDY shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$13.99
Based on -2.0% avg growth
INTRINSIC VALUE TODAY
$8.68
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 0.3x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: RDY is currently trading at $13.20, which is considered oversold relative to its 30-day fair value range of $13.69 to $14.51. From a valuation perspective, the stock is trading at a discount (Forward PE: 0.3) compared to its historical average (0.3). Remarkably, the market is currently pricing in an annual earnings decline of 0.6% over the next few years. This aligns with recent fundamental challenges.
Technical Outlook: Technically, RDY is in a downtrend. The price is currently testing key support at $13.03. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: RDY has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Technical Outlook: Technically, RDY is in a downtrend. The price is currently testing key support at $13.03. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: RDY has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
OVERSOLD
Fair Price Range
$13.69 -
$14.51
Company Quality Score
52/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
52.4%
All Signals
- BULLISH: Price oversold vs 30-day range
- BEARISH: Weak technical setup (25/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($14.12)
Fair Price Analysis
30-Day Fair Range
$13.69 -
$14.51
Current vs Fair Value
OVERSOLD
Support & Resistance Levels
Support Level
$13.03
Resistance Level
$14.13
Current Trend
Downtrend
Technical data as of
Apr 2, 2026
Fundamental Context
Forward P/E (Next Year Est.)
0.26
Wall Street Target
$14.12
(+6.0%)
Revenue Growth (YoY)
4.4%
Earnings Growth (YoY)
-14.3%
Profit Margin
16.4%
Valuation Discount vs History
-0.6% cheaper
PE vs Historical
0.3 vs 0.3
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-0.6%
(market-implied from PE analysis)
1-Year Target
$13.24
(-1%)
2-Year Target
$13.16
(-1%)
3-Year Target
$13.08
(-2%)
3-Yr Target (if PE normalizes)
(PE: 0→0)
$15.27
(+15%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 20.6, Growth: -8.0%)
$829.86
(+6130%)
Base:
(SPY PE: 0.3, Growth: -8.0%)
$10.37
(-22%)
Bear:
(PE: 0.2, Growth: -8.0%)
$8.81
(-34%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (19x PE), but valuation improves significantly next year (0x PE) as earnings recover.
Trailing PE: 18.85 | Current EPS (TTM): $0.73
Bull Case
$30.27
(+121%)
Analyst growth 100.0%, PE expands to 20.7
Base Case
$27.52
(+101%)
Market implied 100.0%, PE stable at 18.9
Bear Case
$9.36
(-32%)
Severe decline -20.0%, PE contracts to 16.0
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 0.3 to 0.3
Stabilization Target:
$15.55
(+16.7%)
PE Expansion Potential:
+16.7%
Share & Embed Analysis
Last updated: April 06, 2026 10:41 AM ET
Data refreshes hourly during market hours. Next update: 11:41 AM
Data refreshes hourly during market hours. Next update: 11:41 AM
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Technical Signals Check
Is RDY showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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