Dr. Reddy's Laboratories Limited

NSEI:DRREDDY Stock Report

Market Cap: ₹1.1t

Dr. Reddy's Laboratories Valuation

Is DRREDDY undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of DRREDDY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
₹899.51
Fair Value
50.6% overvalued intrinsic discount
39
Number of Analysts

Below Fair Value: DRREDDY (₹1354.4) is trading above our estimate of fair value (₹899.51)

Significantly Below Fair Value: DRREDDY is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DRREDDY?

Key metric: As DRREDDY is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for DRREDDY. This is calculated by dividing DRREDDY's market cap by their current earnings.
What is DRREDDY's PE Ratio?
PE Ratio21.2x
Earnings₹53.33b
Market Cap₹1.13t

Price to Earnings Ratio vs Peers

How does DRREDDY's PE Ratio compare to its peers?

The above table shows the PE ratio for DRREDDY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average37.4x
500420 Torrent Pharmaceuticals
61.5x22.5%₹1.1t
500257 Lupin
38x16.5%₹999.3b
ZYDUSLIFE Zydus Lifesciences
23.6x0.3%₹1.0t
CIPLA Cipla
26.5x7.5%₹1.2t
DRREDDY Dr. Reddy's Laboratories
21.2x-0.9%₹1.1t

Price-To-Earnings vs Peers: DRREDDY is good value based on its Price-To-Earnings Ratio (21.2x) compared to the peer average (37.4x).

Price to Earnings Ratio vs Industry

How does DRREDDY's PE Ratio compare vs other companies in the IN Pharmaceuticals Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
INDSWFTLAB Ind-Swift Laboratories
1.6xn/aUS$70.69m
524652 Ind-Swift
2.8xn/aUS$17.69m
No more companies available in this PE range
DRREDDY 21.2xIndustry Avg. 33.9xNo. of Companies18PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DRREDDY is good value based on its Price-To-Earnings Ratio (21.2x) compared to the Indian Pharmaceuticals industry average (33.9x).

Price to Earnings Ratio vs Fair Ratio

What is DRREDDY's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DRREDDY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.2x
Fair PE Ratio35.4x

Price-To-Earnings vs Fair Ratio: DRREDDY is good value based on its Price-To-Earnings Ratio (21.2x) compared to the estimated Fair Price-To-Earnings Ratio (35.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst DRREDDY forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹1,354.40
₹1,350.87
-0.3%
12.1%₹1,737.00₹969.00n/a39
Jan ’26₹1,369.00
₹1,338.56
-2.2%
11.9%₹1,655.00₹969.00n/a39
Dec ’25₹1,202.30
₹1,336.87
+11.2%
12.0%₹1,655.00₹969.00n/a39
Nov ’25₹1,259.60
₹1,322.95
+5.0%
12.3%₹1,713.00₹941.00n/a39
Oct ’25₹1,349.82
₹1,327.00
-1.7%
11.5%₹1,602.00₹941.00n/a38
Sep ’25₹1,406.27
₹1,324.06
-5.8%
11.3%₹1,602.00₹941.00n/a37
Aug ’25₹1,377.59
₹1,313.21
-4.7%
11.4%₹1,602.00₹941.00n/a36
Jul ’25₹1,270.74
₹1,232.29
-3.0%
11.7%₹1,500.00₹849.00n/a36
Jun ’25₹1,158.37
₹1,218.68
+5.2%
11.4%₹1,500.00₹849.00n/a37
May ’25₹1,240.86
₹1,199.06
-3.4%
10.8%₹1,357.00₹783.00n/a36
Apr ’25₹1,250.07
₹1,195.52
-4.4%
11.3%₹1,517.40₹783.00n/a36
Mar ’25₹1,238.71
₹1,193.77
-3.6%
11.2%₹1,517.40₹783.00n/a37
Feb ’25₹1,198.63
₹1,191.63
-0.6%
11.1%₹1,517.40₹783.00n/a37
Jan ’25₹1,164.33
₹1,134.35
-2.6%
10.7%₹1,310.00₹754.60₹1,369.0037
Dec ’24₹1,149.88
₹1,132.06
-1.5%
10.7%₹1,310.00₹754.60₹1,202.3038
Nov ’24₹1,069.29
₹1,137.22
+6.4%
10.9%₹1,312.00₹754.60₹1,259.6038
Oct ’24₹1,117.40
₹1,109.61
-0.7%
11.7%₹1,312.00₹758.80₹1,349.8238
Sep ’24₹1,115.71
₹1,103.21
-1.1%
12.2%₹1,312.00₹758.80₹1,406.2739
Aug ’24₹1,133.41
₹1,099.05
-3.0%
12.0%₹1,312.00₹758.80₹1,377.5939
Jul ’24₹1,031.92
₹994.76
-3.6%
11.5%₹1,200.00₹710.00₹1,270.7436
Jun ’24₹910.41
₹993.51
+9.1%
11.3%₹1,200.00₹710.00₹1,158.3738
May ’24₹985.97
₹993.14
+0.7%
9.8%₹1,178.00₹710.00₹1,240.8638
Apr ’24₹924.55
₹982.24
+6.2%
9.5%₹1,178.00₹710.00₹1,250.0738
Mar ’24₹868.84
₹978.80
+12.7%
9.4%₹1,178.00₹710.00₹1,238.7139
Feb ’24₹870.30
₹976.71
+12.2%
9.6%₹1,178.00₹710.00₹1,198.6339
Jan ’24₹847.51
₹1,000.25
+18.0%
9.3%₹1,192.00₹720.00₹1,164.3338
Analyst Price Target
Consensus Narrative from 39 Analysts
₹1.35k
Fair Value
0.2% overvalued intrinsic discount
39
Number of Analysts

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/10 18:55
End of Day Share Price 2025/01/10 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Dr. Reddy's Laboratories Limited is covered by 81 analysts. 36 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Nitin BhasinAmbit Capital
Prashant NairAmbit Capital
null nullAnand Rathi Shares and Stock Brokers Limited