RDY Stock Analysis: Buy, Sell, or Hold?
RDY - Dr. Reddy's Laboratories Limited American Depositary Shares
$12.87
0.03 (0.19%)
▲
5d:
-8.89%
30d:
-3.27%
90d:
-2.02%
HOLD
LOW Confidence
Analysis Updated: Jul 14, 2026 12:00 AM ET
Earnings: Jul 22, 2026
6d
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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 $12.87, which is considered oversold relative to its 30-day fair value range of $13.11 to $14.57. 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 1.7% 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 $12.70. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $14.26 (+11.1%). 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 currently testing key support at $12.70. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $14.26 (+11.1%). 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
OVERSOLD
Historical Trading Range
$13.11 -
$14.57
Company Quality Score
48/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
77.1%
All Signals
- BULLISH: Price oversold vs 30-day range
- NEUTRAL: Mixed technical signals (40/100)
- BULLISH: High volume confirmation
- BULLISH: Trading below Wall St target ($14.26)
- CAUTION: Recommendation downgraded due to -8.9% 5-day decline
Trading Range Analysis
30-Day Trading Range
$13.11 -
$14.57
Current vs Trading Range
OVERSOLD
Support & Resistance Levels
Support Level
$12.70
Resistance Level
$14.72
Current Trend
Downtrend
Technical data as of
Jul 14, 2026
Fundamental Context
Forward P/E (Next Year Est.)
0.25
Wall Street Target
$14.26
(+11.1%)
Revenue Growth (YoY)
-11.6%
Earnings Growth (YoY)
-86.2%
Profit Margin
12.8%
Valuation Discount vs History
-1.7% cheaper
PE vs Historical
0.3 vs 0.3
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-1.7%
(market-implied from PE analysis)
1-Year Target
$12.62
(-2%)
2-Year Target
$12.41
(-3%)
3-Year Target
$12.20
(-5%)
3-Yr Target (if PE normalizes)
(PE: 0→0)
$14.77
(+15%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: -8.0%)
$878.67
(+6743%)
Base:
(SPY PE: 0.2, Growth: -8.0%)
$10.00
(-22%)
Bear:
(PE: 0.2, Growth: -8.0%)
$8.50
(-34%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (24x PE), but valuation improves significantly next year (0x PE) as earnings recover.
Trailing PE: 24.43 | Current EPS (TTM): $0.54
Bull Case
$29.02
(+126%)
Analyst growth 100.0%, PE expands to 26.9
Base Case
$26.38
(+106%)
Market implied 100.0%, PE stable at 24.4
Bear Case
$8.97
(-30%)
Severe decline -20.0%, PE contracts to 20.8
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
(+21.1%)
PE Expansion Potential:
+21.1%
Share & Embed Analysis
Last updated: July 15, 2026 11:52 AM ET
Data refreshes hourly during market hours. Next update: 12:52 PM
Data refreshes hourly during market hours. Next update: 12:52 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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