Dr. Reddy’s Laboratories Ltd ADR (RDY) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Dr. Reddy’s Laboratories Ltd ADR stock (RDY) is currently trading at $13.87. Dr. Reddy’s Laboratories Ltd ADR PE ratio is 18.68. Dr. Reddy’s Laboratories Ltd ADR PS ratio (Price-to-Sales) is 0.03. Analyst consensus price target for RDY is $13.97. WallStSmart rates RDY as Underperform.
- RDY PE ratio analysis and historical PE chart
- RDY PS ratio (Price-to-Sales) history and trend
- RDY intrinsic value — DCF, Graham Number, EPV models
- RDY stock price prediction 2025 2026 2027 2028 2029 2030
- RDY fair value vs current price
- RDY insider transactions and insider buying
- Is RDY undervalued or overvalued?
- Dr. Reddy’s Laboratories Ltd ADR financial analysis — revenue, earnings, cash flow
- RDY Piotroski F-Score and Altman Z-Score
- RDY analyst price target and Smart Rating
Dr. Reddy’s Laboratories Ltd ADR
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RDY Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Dr. Reddy’s Laboratories Ltd ADR (RDY)
RDY trades 190% above its Graham fair value of $4.90, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Dr. Reddy’s Laboratories Ltd ADR (RDY) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, price/sales, profit margin. Concerns around peg ratio and revenue growth. Fundamentals are solid but monitor weak areas for improvement.
Dr. Reddy’s Laboratories Ltd ADR (RDY) Key Strengths (4)
Paying less than $1 for every $1 of annual revenue
Large-cap company with substantial market presence
Strong profitability: $16 kept per $100 revenue
Solid profitability: $16 profit per $100 equity
Supporting Valuation Data
Dr. Reddy’s Laboratories Ltd ADR (RDY) Areas to Watch (6)
Earnings declining -14.30%, profits shrinking
Very expensive relative to growth, significant premium
Revenue growing slowly at 4.40% annually
Very low institutional interest at 13.44%
Decent operational efficiency, solid but not exceptional
Fairly priced relative to book value
Supporting Valuation Data
Dr. Reddy’s Laboratories Ltd ADR (RDY) Detailed Analysis Report
Overall Assessment
This company scores 53/100 in our Smart Analysis, earning a C- grade. Out of 10 metrics analyzed, 4 register as strengths (avg 8.5/10) while 6 fall into concern territory (avg 3.0/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Price/Sales, Market Cap, Profit Margin. Valuation metrics including Price/Sales (0.03) suggest the stock is attractively priced. Profitability is solid with Return on Equity at 16.10%, Profit Margin at 16.40%.
The Bear Case
The primary concerns are EPS Growth, PEG Ratio, Revenue Growth. Some valuation metrics including PEG Ratio (3.75), Price/Book (2.87) suggest expensive pricing. Growth concerns include Revenue Growth at 4.40%, EPS Growth at -14.30%, which may limit upside. Profitability pressure is visible in Operating Margin at 16.40%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether EPS Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 16.10% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at 4.40% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Price/Sales, Market Cap) and negatives (EPS Growth, PEG Ratio). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
RDY Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
RDY's Price-to-Sales ratio of 0.03x sits near its historical average of 0.03x (0th percentile), suggesting the market is pricing in steady-state growth. The current valuation is -8% below its historical high of 0.03x set in Mar 2026, and 8% above its historical low of 0.03x in Mar 2026.
WallStSmart Analysis Synopsis
Data-driven financial summary for Dr. Reddy’s Laboratories Ltd ADR (RDY) · HEALTHCARE › DRUG MANUFACTURERS - SPECIALTY & GENERIC
The Big Picture
Dr. Reddy’s Laboratories Ltd ADR is a strong growth company balancing expansion with improving profitability. Revenue reached 345.8B with 440% growth year-over-year. Profit margins of 16.4% are healthy, with room for further expansion as the business scales.
Key Findings
Revenue growing at 440% YoY, reaching 345.8B. This pace significantly outperforms most DRUG MANUFACTURERS - SPECIALTY & GENERIC peers.
ROE of 1610.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
What to Watch Next
Growth sustainability: can Dr. Reddy’s Laboratories Ltd ADR maintain 440%+ revenue growth, or will competition slow it down?
Debt management: total debt of 67.7B is significantly higher than cash (18.7B). Monitor refinancing risk.
Sector dynamics: monitor DRUG MANUFACTURERS - SPECIALTY & GENERIC industry trends, competitive moves, and regulatory changes that could impact Dr. Reddy’s Laboratories Ltd ADR.
Bottom Line
Dr. Reddy’s Laboratories Ltd ADR offers an attractive blend of growth (440% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Dr. Reddy’s Laboratories Ltd ADR(RDY)
NYSE
HEALTHCARE
DRUG MANUFACTURERS - SPECIALTY...
USA
Dr. Reddy's Laboratories Limited is a globally integrated pharmaceutical company. The company is headquartered in Hyderabad, India.