Bull Rankings model

Dr. Reddy's Laboratories Limited (RDY) stock analysis

Drug Manufacturers - Specialty & Generic. Scored on the same transparent model behind the daily rankings.

★
RDY
Dr. Reddy's Laboratories Limited · Drug Manufacturers - Specialty & Generic
33.8Score
$12.48Oct 9 close$10.4B
1Y Target$13.22Analyst consensus · 5 analysts
5Y Target$19.36Compound horizon
10Y Target$28.71Long-dated conviction
FCF$95mTTM · 06/26
C-
FCF $95m — barely positive; fragile cash position · Trailing twelve months to 06/26 (operating cash flow − capex).
Rev+3.2%FY YoY
C+
Revenue +3.2% — steady but below market-beating range · Computed from the last two annual revenue figures (FY YoY).
D/E0.19
B+
D/E 0.19 — below the Healthcare debt median (≈40th pctile)
P/E28.4x
B
P/E 28.4 — near the Healthcare median (≈60th pctile)
PEG1.63
C+
PEG 1.63 — modest premium; above fair value

Targets: 1-year is analyst consensus where covered, 5- and 10-year are model estimates; the DCF is a cross-check, not a target. Methodology

Quality-growth score · 33.8
Quality67.2
Growth49.0
Value16.1
Why this score
  • Raising its dividend
  • Durable high returns
  • Foreign reporter (INR)
Entry · Margin of safety
52-week rangeNear 52-week low
20% off the 12-month high
vs DCF fair value602% aboveest. fair value ~$2
What the price assumes: free cash flow growing about 58% next year, slowing to 4% a year by year ten — vs a starting rate of ~6% our model takes as the middle of three readings — analyst estimates, last year's revenue growth, and the company's own multi-year record.

Model-generatedFrom reported fundamentals, checked against the figures above · Editorial standards

Why now
Drug Manufacturers - Specialty & Generic · market cap $10.4b. Down 20% from 52-week high of $15.67 — deep drawdown territory. 5 sell-side analysts rate this a Hold with a mean 1-yr target of $13.22 (implying +6% upside).
Moat
Pharma moat is patent runway + pipeline depth — a single approved molecule funds the next generation of bets. Late-stage trials carry binary readouts that swing valuation 30%+.
Risk
Trial-readout binary — late-stage clinical trials carry approve/reject outcomes that swing valuation 30%+; the equity is effectively a portfolio of these binary events, not a steady cash-flow business.
Horizon
1-3 yr $13.22 (5-analyst consensus) — fundamentals + valuation re-rating. 5 yr $19.36 at ~9% CAGR — compounding case rests on the competitive position widening. 10 yr $28.71 if current growth sustains into durable earnings power.

RDY vs the Top Picks average

PillarRDYBook avgDiff
Quality6783-16
Growth4989-40
Value1676-60

Average of today's Top 30 (mean score 82.6); size and sector limits also decide the book.

Trend
-15.4 over 82 daily scores
From 49.2 (Jun 22) → 33.8 (now)

One point per daily run; read From → To for the actual range.

RDY at a glance

THE BULL RANKINGS SCORECARD33.8/ 100 · BULL SCOREPEER MEDIANQUALITY67.2GROWTH49.0VALUE16.1Reverse-DCF · Price implies ~58% growth a year from here.
PRICE vs OUR DCF FAIR VALUE$1.7–$1.8FAIR-VALUE RANGE$12.5PRICEOur DCF fair value ~$1.8 · price $12.5 is 602% above it.
ONE-YEAR MOVE VS ITS BETAFLATThis stock-15%Trailing one-year price change. Price history is not an inputto the Bull Rankings score.
PRICE IN ITS 52-WEEK RANGE$12.5LOW $11.4HIGH $15.7Trading at the 26th percentile of its 52-week range ($11.4–$15.7).

Same audited fundamentals as the score, unless a card says otherwise.

Analyst estimate revisions

30-day change-2.3%
90-day change-3.3%
Forward EPS estimate$0.64

Over the last 90 days, what analysts expect RDY to earn is drifting lower (-3.3%). The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.

Estimates move both ways and are not part of the Bull Rankings score. Biggest movers →

Shares to buy
160
Position size
$1,997
4.0% of portfolio
Stop price
$9.36
25% below $12.48
$ at risk if stopped
$499.20
budget $500.00 · 1% of portfolio

Math only: excludes commissions, slippage and gap risk. Inputs stay in your browser.

Dr. Reddy's Laboratories Limited (RDY): score, valuation & FAQ

Dr. Reddy's Laboratories Limited (RDY) is a Drug Manufacturers - Specialty & Generic company that scores 33.8 out of 100 on the Bull Rankings quality-growth model — a weak reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are D/E (B+), while FCF (C-) rate weaker. On valuation, RDY sits about 602% above our discounted-cash-flow fair value — the current price implies free cash flow growing about 58% next year, slowing to 4% a year by year ten.

Is RDY a good stock to buy?

Bull Rankings scores RDY 33.8 out of 100 on its quality-growth model, which is a weak reading. That is driven by D/E (B+). A score is a quantitative screen of Dr. Reddy's Laboratories Limited's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does RDY score 33.8 on Bull Rankings?

The score leans on quality at 67.2 out of 100, with value the weakest pillar at 16.1 — the three combine geometrically, so a weak one cannot be papered over by a strong one. RDY earns its highest marks on D/E (B+), and is held back by FCF (C-). Each signal is graded against sector-aware thresholds rather than one absolute bar, so RDY is measured against Drug Manufacturers - Specialty & Generic peers, not against the market as a whole.

Is RDY overvalued or undervalued?

Based on $12.48, RDY sits about 602% above our discounted-cash-flow fair value — the current price implies free cash flow growing about 58% next year, slowing to 4% a year by year ten. It trades at a 28.4x P/E (graded B). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in RDY?

Trial-readout binary — late-stage clinical trials carry approve/reject outcomes that swing valuation 30%+; the equity is effectively a portfolio of these binary events, not a steady cash-flow business.

New to these metrics? See the guides and the methodology.

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