RDY Stock Analysis: Buy, Sell, or Hold?
RDY - Dr. Reddy's Laboratories Limited American Depositary Shares
$14.38
0.39 (2.79%)
▲
5d:
-5.7%
30d:
+10.36%
90d:
+6.76%
HOLD
LOW Confidence
Analysis Updated: Jul 2, 2026 12:00 AM ET
Earnings: Jul 22, 2026
16d
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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 $14.38, 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 $13.21, 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 $13.21, 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 ($14.12)
- BULLISH: Expecting earnings turnaround to 2.2% growth with -11.6% revenue growth
- CAUTION: Recommendation downgraded due to -5.7% 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
$13.21
Resistance Level
$15.67
Current Trend
Downtrend
Technical data as of
Jul 2, 2026
Fundamental Context
Forward P/E (Next Year Est.)
0.28
Wall Street Target
$14.12
(-1.8%)
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
$14.70
(+2%)
2-Year Target
$15.02
(+4%)
3-Year Target
$15.35
(+7%)
3-Yr Target (if PE normalizes)
(PE: 0→0)
$16.59
(+15%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: -8.0%)
$878.67
(+6010%)
Base:
(SPY PE: 0.3, Growth: -8.0%)
$11.20
(-22%)
Bear:
(PE: 0.2, Growth: -8.0%)
$9.52
(-34%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (25x PE), but valuation improves significantly next year (0x PE) as earnings recover.
Trailing PE: 25.44 | Current EPS (TTM): $0.55
Bull Case
$30.78
(+114%)
Analyst growth 100.0%, PE expands to 28.0
Base Case
$27.98
(+95%)
Market implied 100.0%, PE stable at 25.4
Bear Case
$9.51
(-34%)
Severe decline -20.0%, PE contracts to 21.6
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: July 05, 2026 6:55 PM ET
Data refreshes hourly during market hours. Next update: 7:55 PM
Data refreshes hourly during market hours. Next update: 7:55 PM
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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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