RDY Stock Analysis: Buy, Sell, or Hold?
RDY - Dr. Reddy's Laboratories Limited American Depositary Shares
$14.36
-0.02 (-0.14%)
▼
5d:
-6.63%
30d:
+10.29%
90d:
+7.81%
HOLD
LOW Confidence
Analysis Updated: Jul 6, 2026 12:00 AM ET
Earnings: Jul 22, 2026
14d
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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 historical range
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 $14.36, which is considered slightly high relative to its 30-day fair value range of $13.08 to $14.42. The stock's valuation (Forward PE: 0.3) is in line with its historical norms (0.3). At these levels, the market is pricing in 2.2% annual earnings growth.
Technical Outlook: Technically, RDY is in a downtrend. Immediate support is located at $13.45, while resistance sits at $15.67.
Market Sentiment: RDY has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. 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. Immediate support is located at $13.45, while resistance sits at $15.67.
Market Sentiment: RDY has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. 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
SLIGHTLY HIGH
Historical Trading Range
$13.08 -
$14.42
Company Quality Score
65/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
74.8%
All Signals
- BULLISH: Strong technical setup (75/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($14.15)
- BULLISH: Expecting earnings turnaround to 2.2% growth with -11.6% revenue growth
- CAUTION: Recommendation downgraded due to -6.6% 5-day decline
Trading Range Analysis
30-Day Trading Range
$13.08 -
$14.42
Current vs Trading Range
SLIGHTLY HIGH
Support & Resistance Levels
Support Level
$13.45
Resistance Level
$15.67
Current Trend
Downtrend
Technical data as of
Jul 6, 2026
Fundamental Context
Forward P/E (Next Year Est.)
0.28
Wall Street Target
$14.15
(-1.5%)
Revenue Growth (YoY)
-11.6%
Earnings Growth (YoY)
-86.2%
Profit Margin
12.8%
Valuation Premium vs History
+2.2% premium
PE vs Historical
0.3 vs 0.3
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+2.2%
(market-implied from PE analysis)
1-Year Target
$14.68
(+2%)
2-Year Target
$15.00
(+4%)
3-Year Target
$15.33
(+7%)
3-Yr Target (if PE normalizes)
(PE: 0→0)
$16.59
(+16%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: -8.0%)
$878.67
(+6019%)
Base:
(SPY PE: 0.3, Growth: -8.0%)
$11.18
(-22%)
Bear:
(PE: 0.2, Growth: -8.0%)
$9.50
(-34%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (26x PE), but valuation improves significantly next year (0x PE) as earnings recover.
Trailing PE: 26.15 | Current EPS (TTM): $0.55
Bull Case
$31.64
(+120%)
Analyst growth 100.0%, PE expands to 28.8
Base Case
$28.76
(+100%)
Market implied 100.0%, PE stable at 26.2
Bear Case
$9.78
(-32%)
Severe decline -20.0%, PE contracts to 22.2
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: July 06, 2026 11:17 PM ET
Data refreshes hourly during market hours. Next update: 12:17 AM
Data refreshes hourly during market hours. Next update: 12:17 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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