Dr. Reddy's Laboratories Limited research snapshot
RDY AI stock analysis currently reads Dr. Reddy's Laboratories as a diversified India-based pharmaceutical company with global generics, branded markets, consumer healthcare, APIs, and a longer-term biosimilar and innovation build. At the August 3, 2026 data cutoff, RDY last closed near $11.85 with a reported market capitalization near $10 billion. Q1 FY27 revenue fell about 6% year over year to INR 8,071 crore (about $853 million) while profit attributable to equity holders dropped about 69% to INR 443 crore (about $47 million), hit by lower lenalidomide sales, an INR 240 crore provision tied to out-of-spec semaglutide batches, and Middle East conflict cost pressure. Management expects semaglutide commercial supplies to resume around November. This page uses scenarios, technical levels, and source-backed data for informational research, not investment advice.
Current price
$11.85
Market cap
$10.01 billion
AI score
47 / 100
Rating
Diversified global generics franchise in a semaglutide-driven earnings reset
Trend status
Short-term downtrend after the July 22 Q1 FY27 selloff, with price below the 50-day and 200-day averages and near the 52-week low
Data cutoff (updated monthly)
August 4, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | Dr. Reddy's sells generic medicines, branded generics, consumer healthcare, APIs, and selected specialty and biosimilar products across North America, India, Europe, Russia and CIS, and other emerging markets. | High |
| Moat | Scale manufacturing, regulatory filing skill, a broad product portfolio, India brand presence, and cost position support the moat, but pure generics still face price competition and the semaglutide API setback shows that quality-linked events can hit margins quickly. | Medium |
| Management | CEO Erez Israeli and CFO M. V. Narasimham are prioritizing semaglutide resolution, base-business resilience, abatacept approval, biosimilars, consumer health, and targeted business development after the Q1 FY27 earnings reset. | Medium-high |
| Financial trend | Q1 FY27 revenue was INR 8,071 crore, down about 5.6% year over year. Profit attributable to equity holders was INR 443 crore, down about 69%, with EBITDA margin at 12.5% and gross margin at 46.5%. | High |
| Valuation | At $11.85, reported market data imply about 28.6x TTM EPS of $0.42, a forward PE near 23.7x, about 2.45x book value, and a low free-cash-flow yield after the earnings reset. | Medium-high |
| Technical trend | After the July 22 decline, RDY traded below the roughly $13.30 50-day average and the roughly $13.69 200-day average, with RSI near 34 and the 52-week range near $11.36 to $15.67. | Medium |
| Risk level | Risks include semaglutide API resolution risk, U.S. generic price erosion, lenalidomide concentration, FDA Form 483 findings, U.S. tariffs on imported generics, Middle East conflict costs, Russia and emerging-market exposure, and currency. | High |
| AI confidence | The company data record is strong, but AI cannot convert semaglutide resolution, product launches, pricing, tariff outcomes, or regulator outcomes into a dependable price prediction. | High data confidence |
| Investment certainty | Medium-low certainty. Franchise quality and net cash help, yet earnings just reset and the multiple still prices a clean recovery without proof of margin repair. | Medium-low |
RDY AI stock forecast
The RDY AI stock forecast uses scenario math around the $11.85 July 31 close and a normalized FY27 earnings power near $0.50 per ADR. The three-year framework produced a bullish area near $15.5, a base area near $10.7, and a bearish area near $6.1 before dividends. These are scenarios, not price targets.
$15 to $16
More likely if semaglutide supplies resume around November as planned, abatacept gains U.S. approval around the mid-December goal date, India, Europe NRT, emerging markets, and complex generics restore earnings growth near 12% annually, margins recover toward high teens, tariff impact stays limited, and investors re-rate RDY toward a low-20s multiple.
$10.50 to $11.50
More likely if EPS compounds only around 6% annually, semaglutide resolution is delayed but successful, generic price pressure continues, tariffs and Middle East costs add friction, free cash flow stays modest after reinvestment, and the market applies a mid-to-high teens multiple.
$6 to $7
More likely if the semaglutide issue is not resolved on schedule or recurs, U.S. generics keep declining, new launches underdeliver, quality or regulatory findings restrict capacity, tariffs materially raise costs, currency and Russia risk bite, earnings fall further, and the multiple compresses toward 12x.
RDY AI technical analysis
RDY AI technical analysis is cautious as of the August 3, 2026 cutoff. Market data sources put the July 31 close near $11.85 after a roughly 9% single-day drop on July 22, with a 50-day average near $13.30, a 200-day average near $13.69, RSI near 34, a 20-day average volume near 2.99 million shares, and a 52-week range of about $11.36 to $15.67. These levels are snapshots, not forecasts.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $11.85 | July 31, 2026 closing price used for market-cap and valuation math. |
| Near support | $11.50 to $11.36 | The lower half of the recent range and the 52-week low near $11.36 form the first deeper support zone. |
| Near resistance | $13.30 to $13.69 | The 50-day and 200-day moving average zone is the first reclaim area after the July 22 decline. |
| 50-day moving average | About $13.30 | StockAnalysis snapshot near the data cutoff. Price was below this short-term trend reference. |
| 200-day moving average | About $13.69 | Long-term reference that shifted from support toward resistance after the selloff. |
| Momentum | Weak after the July 22 gap lower | A roughly 9% single-day decline and a move under key averages weakens the short-term trend until closes and volume improve. |
| Volume | About 2.99 to 3.0 million shares on a 20-day average | Compare earnings and semaglutide-news sessions with the multi-million-share average because generics and supply news can fade quickly. |
| Volatility | 52-week range $11.36 to $15.67, beta near 0.26 | The band shows that pricing, product, regulatory, and tariff headlines can move RDY even with a historically low beta. |
| Invalidation | Sustained close below $11.36 | A break of the 52-week low would confirm a broader downtrend rather than a one-day shakeout. |
RDY AI trading strategy
This RDY AI trading strategy is a rules-based research framework, not personal advice. It connects price levels with semaglutide resolution timing, U.S. generics base sales, India and emerging-market branded growth, Europe consumer health, launch cadence, margin recovery, free cash flow, FDA updates, tariff policy, and portfolio-level risk limits.
Watch for RDY to reclaim and hold the $13.30 to $13.69 zone with improving volume while semaglutide supplies resume around November and subsequent quarters show stabilizing North America base sales, better gross margin, and visible contribution from India, Europe NRT, and new launches.
A close back below $11.50, especially with weaker guidance language, a delayed semaglutide timeline, more price erosion, tariff escalation, or a negative FDA quality update, should weaken the setup.
If RDY holds the $11.50 to $11.36 zone without a new structural break, compare the valuation with normalized earnings power after the semaglutide provision, net cash, and the durability of branded and biosimilar growth.
Do not treat a lower price as enough evidence of value if gross margin, free cash flow, launch traction, semaglutide resolution, or quality metrics keep deteriorating.
Track semaglutide testing and resupply milestones, North America generics ex-lenalidomide, India secondary growth versus IPM, Europe NRT integration, Russia and emerging markets, PSAI volumes, abatacept and biosimilar milestones, gross margin, EBITDA margin, free cash flow after acquisitions, net cash surplus, tariff policy, and FDA inspection outcomes.
Position sizing should account for pharmaceutical event risk and should not rely on AI or consensus forecasts as certainty.
Investment research summary
Customers pay Dr. Reddy's for affordable, regulated access to generic and branded medicines, APIs, consumer healthcare products, and selected specialty or biosimilar therapies across major developed and emerging markets.
The moat rests on manufacturing scale, regulatory know-how, a wide filing pipeline, India brand equity, cost competitiveness, and growing consumer-health distribution. It is narrower in commoditized U.S. oral solids than in complex generics, brands, and biosimilars, and semaglutide execution risk can pressure it in the near term.
The thesis fails if the company cannot resolve the semaglutide API issue on schedule, replace high-margin U.S. product cash flows, price erosion accelerates, biosimilar or complex launches slip, quality findings restrict capacity, tariff policy raises costs, Russia or currency shocks persist, or acquisition spend fails to earn returns.
Erez Israeli and M. V. Narasimham remain the operating leadership under the founding family connection. Capital allocation should be judged by semaglutide resolution, margin recovery, disciplined M&A, abatacept execution, and whether portfolio pruning raises returns on capital.
Affordable medicines, biosimilars, GLP-1 therapies, and chronic-care demand are multi-year industry supports. Offsets include U.S. generic price pressure, proposed tariffs on imported generics, tender competition in Europe, patent and litigation cycles, and rising regulatory scrutiny of manufacturing quality.
Around 28.6x depressed TTM EPS leaves limited margin of safety if growth stays mid-single digits. The net-cash balance sheet helps, but investors still need evidence that earnings power can recover after the semaglutide provision without paying for a full recovery in advance.
Source-backed data
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| RDY quote reference | $11.85 close on July 31, 2026; 52-week range $11.36 to $15.67 | StockAnalysis.com market data | August 3, 2026 |
| Market capitalization verification | $10.01 billion reported; about $9.87 billion calculated from $11.85 x 832.98 million shares, a deviation near 1.4% within tolerance | Pineify financial_rigor.py with StockAnalysis shares | August 3, 2026 |
| Q1 FY27 revenue | INR 8,071 crore (about $853 million at INR 94.66 per dollar), down 5.6% year over year, up 7.4% sequentially | Dr. Reddy's Q1 FY27 results presentation, Form 6-K Exhibit 99.1 | August 3, 2026 |
| Q1 FY27 profit attributable to equity holders | INR 443 crore (about $47 million), down about 69% year over year; diluted EPS INR 5.32; PBT INR 553 crore at a 6.8% margin | Dr. Reddy's Q1 FY27 results presentation, Form 6-K Exhibit 99.1 | August 3, 2026 |
| Q1 FY27 margins and semaglutide impact | Gross margin 46.5% and EBITDA margin 12.5% as reported, or 49.4% and 15.4% excluding the INR 240 crore semaglutide API related provision and associated costs | Dr. Reddy's Q1 FY27 results presentation, Form 6-K Exhibit 99.1 | August 3, 2026 |
| Q1 FY27 segment mix | Global Generics INR 7,199 crore; North America INR 2,205 crore down about 35% on lower lenalidomide; India INR 1,718 crore up 17%; Emerging markets INR 1,833 crore up 31%; Europe INR 1,444 crore up 13% including NRT; PSAI INR 852 crore | Dr. Reddy's Q1 FY27 results presentation, Form 6-K Exhibit 99.1 | August 3, 2026 |
| Balance sheet snapshot at June 30, 2026 | Net cash surplus INR 3,057 crore (about $323 million, adjusted for non-current cash and borrowings); Q1 capex outflow INR 307 crore; FY27 capex guidance around INR 1,800 crore | Dr. Reddy's Q1 FY27 results presentation, Form 6-K Exhibit 99.1 | August 3, 2026 |
| FY26 full year (ended March 31, 2026) | Revenue INR 335,933 million (about $3.58 billion), up 3.19%; net income INR 42,850 million, down about 24%; gross margin 52.8% | StockAnalysis.com financials with Fiscal.ai and S&P Global data | August 3, 2026 |
| Valuation arithmetic | TTM PE about 28.2x on $0.42 EPS, PB about 2.4x on $4.87 book value per share, dividend yield about 0.54% on the $0.06 annual dividend, forward PE near 23.7x | Pineify financial_rigor.py verify-valuation with StockAnalysis data | August 3, 2026 |
| Technical snapshot | 50-day average about $13.30, 200-day average about $13.69, RSI near 34, beta near 0.26, 20-day average volume about 2.99 million shares, short interest about 3.06% of shares out | StockAnalysis.com technical and range data | August 3, 2026 |
| Analyst consensus | Hold rating, 5 analysts, average price target $13.46 with a range of $11.48 to $15.72; FY27 adjusted EPS forecast around INR 44.77 with revenue near INR 351.91 billion | StockAnalysis.com forecast with S&P Global and TipRanks data | August 3, 2026 |
This RDY AI stock analysis is an informational research tool only. It is not investment advice, not a recommendation to buy or sell Dr. Reddy's Laboratories Limited, and not a promise of future returns. Forecasts are scenario-based estimates from available public data and can be wrong.
Design trading strategies visually with 10+ indicators. Set entry/exit conditions and risk management, then generate Pine Script code with no coding required.
Filter and discover stocks based on market cap, dividend yield, P/E ratio, sector, and more. Screen thousands of stocks with real-time data.
Smart AI-driven stock selection with fundamental screening, analyst estimates, and key metrics. Filter by P/E, market cap, dividends, and more.
