Dr. Reddy's Laboratories (RDY) Stock: Buy, Sell, or Hold?
RDY - Dr. Reddy's Laboratories Limited American Depositary Shares
$11.90
0.19 (1.62%)
▲
5d:
-1.08%
30d:
-3.95%
90d:
-10.93%
WAIT
LOW Confidence
Analysis Updated: Sep 11, 2026 12:00 AM ET
Earnings: Oct 23, 2026
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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 $11.90, which is considered oversold relative to its 30-day fair value range of $11.98 to $12.30. 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 3.6% 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 $11.67. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock scores a mixed 41/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. Wall Street analysts see significant upside, with an average price target of $13.40 (+12.6%). Current signals suggest waiting for a better entry point before initiating new positions.
Technical Outlook: Technically, RDY is in a downtrend. The price is currently testing key support at $11.67. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock scores a mixed 41/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. Wall Street analysts see significant upside, with an average price target of $13.40 (+12.6%). Current signals suggest waiting for a better entry point before initiating new positions.
Quick Decision Summary
Current Position
OVERSOLD
Historical Trading Range
$11.98 -
$12.30
Company Quality Score
46/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
77.1%
All Signals
- BULLISH: Price oversold vs 30-day range
- NEUTRAL: Mixed technical signals (41/100)
- BULLISH: High volume confirmation
- BULLISH: Trading below Wall St target ($13.40)
- WARNING: Composite score 46/100 in the bottom quintile — this cohort historically lags the market
Trading Range Analysis
30-Day Trading Range
$11.98 -
$12.30
Current vs Trading Range
OVERSOLD
Support & Resistance Levels
Support Level
$11.67
Resistance Level
$12.33
Current Trend
Downtrend
Technical data as of
Sep 11, 2026
Fundamental Context
Forward P/E (Next Year Est.)
0.23
Wall Street Target
$13.40
(+12.6%)
Revenue Growth (YoY)
-5.6%
Earnings Growth (YoY)
-68.7%
Profit Margin
10.0%
Valuation Discount vs History
-3.6% cheaper
PE vs Historical
0.2 vs 0.3
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-3.6%
(market-implied from PE analysis)
1-Year Target
$11.47
(-4%)
2-Year Target
$11.06
(-7%)
3-Year Target
$10.66
(-10%)
3-Yr Target (if PE normalizes)
(PE: 0→0)
$13.93
(+17%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 20.2, Growth: -8.0%)
$813.72
(+6738%)
Base:
(SPY PE: 0.2, Growth: -8.0%)
$9.26
(-22%)
Bear:
(PE: 0.2, Growth: -8.0%)
$7.87
(-34%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (29x PE), but valuation improves significantly next year (0x PE) as earnings recover.
Trailing PE: 28.56 | Current EPS (TTM): $0.41
Bull Case
$25.76
(+117%)
Analyst growth 100.0%, PE expands to 31.4
Base Case
$23.42
(+97%)
Market implied 100.0%, PE stable at 28.6
Bear Case
$7.96
(-33%)
Severe decline -20.0%, PE contracts to 24.3
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 0.2 to 0.3
Stabilization Target:
$15.55
(+30.6%)
PE Expansion Potential:
+30.6%
Share & Embed Analysis
Last updated: September 13, 2026 10:28 PM ET
Data refreshes hourly during market hours. Next update: 11:28 PM
Data refreshes hourly during market hours. Next update: 11:28 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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