RDY Stock Analysis: Buy, Sell, or Hold?
RDY - Dr. Reddy's Laboratories Limited American Depositary Shares
$14.66
0.35 (2.45%)
▲
5d:
+10.23%
30d:
+7.79%
90d:
+9.0%
HOLD
MODERATE Confidence
Analysis Updated: Jun 24, 2026 12:00 AM ET
Earnings: Jul 22, 2026
26d
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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 $14.66, which is considered extended relative to its 30-day fair value range of $13.13 to $13.84. 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 2.3% annual earnings growth.
Technical Outlook: Technically, RDY is in a downtrend. The price is approaching resistance at $14.52. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
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. The price is approaching resistance at $14.52. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
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
EXTENDED
Historical Trading Range
$13.13 -
$13.84
Company Quality Score
67/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
55.7%
All Signals
- BEARISH: Price extended above range (+5.9% above its trading range)
- BULLISH: Strong technical setup (75/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($14.26)
- BULLISH: Expecting earnings turnaround to 2.3% growth with -11.6% revenue growth
Trading Range Analysis
30-Day Trading Range
$13.13 -
$13.84
Current vs Trading Range
EXTENDED
Support & Resistance Levels
Support Level
$13.08
Resistance Level
$14.52
Current Trend
Downtrend
Technical data as of
Jun 24, 2026
Fundamental Context
Forward P/E (Next Year Est.)
0.28
Wall Street Target
$14.26
(-2.7%)
Revenue Growth (YoY)
-11.6%
Earnings Growth (YoY)
-86.2%
Profit Margin
12.8%
Valuation Premium vs History
+2.3% premium
PE vs Historical
0.3 vs 0.3
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+2.3%
(market-implied from PE analysis)
1-Year Target
$15.00
(+2%)
2-Year Target
$15.34
(+5%)
3-Year Target
$15.69
(+7%)
3-Yr Target (if PE normalizes)
(PE: 0→0)
$16.64
(+14%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: -8.0%)
$878.67
(+5894%)
Base:
(SPY PE: 0.3, Growth: -8.0%)
$11.41
(-22%)
Bear:
(PE: 0.2, Growth: -8.0%)
$9.70
(-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: 26.13 | Current EPS (TTM): $0.55
Bull Case
$31.61
(+116%)
Analyst growth 100.0%, PE expands to 28.7
Base Case
$28.74
(+96%)
Market implied 100.0%, PE stable at 26.1
Bear Case
$9.77
(-33%)
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: June 24, 2026 11:33 PM ET
Data refreshes hourly during market hours. Next update: 12:33 AM
Data refreshes hourly during market hours. Next update: 12:33 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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