Dr. Reddy's Laboratories (RDY) Stock: Buy, Sell, or Hold?
RDY - Dr. Reddy's Laboratories Limited American Depositary Shares
$13.21
-0.02 (-0.15%)
▼
5d:
+1.07%
30d:
+7.4%
90d:
+12.23%
WAIT
LOW Confidence
Analysis Updated: Oct 23, 2026 12:00 AM ET
Earnings: Oct 23, 2026
0d
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 MIXED SIGNALS: RDY shows conflicting indicators. Wait for confirmation before entering.
📊 MIXED SIGNALS: RDY shows conflicting indicators. Wait for confirmation before entering.
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 $13.21, which is considered extended relative to its 30-day fair value range of $12.09 to $12.97. From a valuation perspective, the stock is trading at a discount (Forward PE: 0.2) 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 approaching resistance at $13.57. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: RDY scores 0/100 on our bottoming-setup gauge. Note this measures entry quality, not trend direction — a low score can mean the chart is extended after a strong run (don't chase) or still falling without stabilization; better entries typically come after a pullback toward the 20-day average. Current signals suggest waiting for a better entry point before initiating new positions.
Technical Outlook: Technically, RDY is in a downtrend. The price is approaching resistance at $13.57. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: RDY scores 0/100 on our bottoming-setup gauge. Note this measures entry quality, not trend direction — a low score can mean the chart is extended after a strong run (don't chase) or still falling without stabilization; better entries typically come after a pullback toward the 20-day average. Current signals suggest waiting for a better entry point before initiating new positions.
Quick Decision Summary
Current Position
EXTENDED
Historical Trading Range
$12.09 -
$12.97
Company Quality Score
27/100
(SELL)
Volume Confirmation
HIGH
Confidence Score
23.8%
All Signals
- BEARISH: Price extended above range
- BEARISH: Weak technical setup (0/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($13.84)
- WARNING: Composite score 27/100 in the bottom quintile — this cohort historically lags the market
Trading Range Analysis
30-Day Trading Range
$12.09 -
$12.97
Current vs Trading Range
EXTENDED
Support & Resistance Levels
Support Level
$12.60
Resistance Level
$13.57
Current Trend
Downtrend
Technical data as of
Oct 23, 2026
Fundamental Context
Forward P/E (Next Year Est.)
0.25
Wall Street Target
$13.84
(+4.8%)
Revenue Growth (YoY)
-5.6%
Earnings Growth (YoY)
-68.7%
Profit Margin
10.0%
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
$13.13
(-1%)
2-Year Target
$13.05
(-1%)
3-Year Target
$12.97
(-2%)
3-Yr Target (if PE normalizes)
(PE: 0→0)
$15.27
(+16%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 19.9, Growth: -8.0%)
$801.22
(+5965%)
Base:
(SPY PE: 0.3, Growth: -8.0%)
$10.28
(-22%)
Bear:
(PE: 0.2, Growth: -8.0%)
$8.74
(-34%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (30x PE), but valuation improves significantly next year (0x PE) as earnings recover.
Trailing PE: 30.07 | Current EPS (TTM): $0.44
Bull Case
$29.11
(+120%)
Analyst growth 100.0%, PE expands to 33.1
Base Case
$26.46
(+100%)
Market implied 100.0%, PE stable at 30.1
Bear Case
$9.00
(-32%)
Severe decline -20.0%, PE contracts to 25.6
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
(+17.7%)
PE Expansion Potential:
+17.7%
Share & Embed Analysis
Last updated: October 24, 2026 7:23 PM ET
Data refreshes hourly during market hours. Next update: 8:23 PM
Data refreshes hourly during market hours. Next update: 8:23 PM
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| Ticker | Score | Recommendation | Change % |
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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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