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Dr. Reddy's Laboratories Ltd (RDY) Stock Analysis

Recovery setup

SellModerate Confidence

Healthcare · Drug Manufacturers - Specialty & Generic

Sell if holding. Analyst target reached at $13.73 — A.R:R is negative (-1.5) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Consecutive earnings misses (2).

Dr. Reddy's Laboratories Limited, together with its subsidiaries, operates as an integrated pharmaceutical company North America, Europe, India, Russia, and internationally. It operates through Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Others... Read more

Stop $13.02Target $13.92(resistance)A.R:R -1.5:1
Analyst target$14.09+2.6%5 analysts
$13.92our TP
$13.73price
$14.09mean
$11
$16

Sell if holding. Analyst target reached at $13.73 — A.R:R is negative (-1.5) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Consecutive earnings misses (2). Chart setup: Death cross but MACD improving, RSI 57. Score 4.9/10, moderate confidence.

Passes 4/8 gates (positive momentum, clean insider activity, no SEC red flags, semi cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.

Thesis

Rewards
No bull case signals
Risks
Analyst target reached - limited upside remaining
Consecutive earnings misses (2)
Weak overall score: 4.9/10

Key Metrics

P/E (TTM)19.1
P/E (Fwd)25.1
Mkt Cap$11.5B
EV/EBITDA0.0
Profit Mgn16.4%
ROE16.1%
Rev Growth4.4%
Beta0.30
Dividend0.67%
Rating analysts45

Quality Signals

Piotroski F8/9

Options Flow

P/C0.46bullish
Max Pain$3-81.8% vs spot

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

1 floor-breaker

Growth below the gate floor. Component breakdown shows what dragged the score down.static

Earnings Growth
0.0
Revenue Growth
3.6
GatesA.R:R -1.5=NEGATIVEMomentum 5.5<5.5 (soft — BUY_NOW allowed but watch)Death cross (50MA < 200MA)EARNINGS PROXIMITY 12d<=14d (soft)Momentum 5.5>=4.5Insider activity: OKNo SEC red flagsSEMI CYCLE PEAK CLEARRecoverySuitability: Moderate
RSI
57 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $12.77Resistance $14.20

Price Targets

$13
$14
A.Upside+1.4%
A.R:R-1.5:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Target reached (-10.6% upside)
! Negative risk/reward — downside exceeds upside

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-05-12 (12d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is RDY stock a buy right now?

Sell if holding. Analyst target reached at $13.73 — A.R:R is negative (-1.5) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Consecutive earnings misses (2). Chart setup: Death cross but MACD improving, RSI 57. Prior stop was $13.02. Score 4.9/10, moderate confidence.

What is the RDY stock price target?

Take-profit target: $13.92 (+1.5% upside). Prior stop was $13.02. Stop-loss: $13.02.

What are the risks of investing in RDY?

Analyst target reached - limited upside remaining; Consecutive earnings misses (2); Weak overall score: 4.9/10.

Is RDY overvalued or undervalued?

Dr. Reddy's Laboratories Ltd trades at a P/E of 19.1 (forward 25.1). TrendMatrix value score: 5.6/10. Verdict: Sell.

What do analysts say about RDY?

45 analysts cover RDY with a consensus score of 3.4/5. Average price target: $14.

What does Dr. Reddy's Laboratories Ltd do?Dr. Reddy's Laboratories Limited, together with its subsidiaries, operates as an integrated pharmaceutical company...

Dr. Reddy's Laboratories Limited, together with its subsidiaries, operates as an integrated pharmaceutical company North America, Europe, India, Russia, and internationally. It operates through Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Others segment. The Global Generics segment manufactures and markets prescription and over-the-counter finished pharmaceutical products that are marketed under a brand name or as a generic finished dosages with therapeutic equivalence to branded formulations, as well as engages in the biologics business. The PSAI segment manufactures and markets active pharmaceutical ingredients and intermediates, which are principal ingredients for finished pharmaceutical products. This segment also provides contract research services; and manufactures and sells active pharmaceutical ingredients and steroids with the customer requirements. The Others segment engages in developing therapies in the fields of oncology and inflammation; and research and development of differentiated formulations. The company offers its products for various therapeutic categories, including gastro-intestinal, cardiovascular, anti-diabetic, dermatology, oncology, respiratory, stomatology, urology, and nephrology, vaccines and pain management. Dr. Reddy's Laboratories Limited was incorporated in 1984 and is headquartered in Hyderabad, India.

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