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Dr Reddys Laboratories Ltd

DRREDDYPharmaceuticals
1175.50+0.00 (+0.00%)
As on 16 Jan 2026, 10:13 amMarket Closed

Fundamental Score

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Dr Reddys Laboratories Ltd Share Price Live NSE/BSE

No data
High
0.00
Low
0.00
Volume
0
Change
+0.00%

Profitability Metrics

Good

Return on Equity

17.96%
Excellent

Return on Capital Employed

22.69%
Excellent

Operating Profit Margin (5Y)

24.30%
Average

Dividend Yield

0.63%

Valuation Metrics

Excellent

Price to Earnings

18.23x

Market Capitalization

1.05L (Cr)

Industry P/E

31.77x

Growth Metrics

Poor

YoY Quarterly Profit Growth

7.28%
Poor

YoY Quarterly Sales Growth

9.83%
Excellent

Sales Growth (5Y)

13.26%
Excellent

EPS Growth (5Y)

22.17%
Excellent

Profit Growth (5Y)

22.28%

Financial Health

Excellent

Debt to Equity

0.16x
Excellent

Interest Coverage

24.46x
Excellent

Free Cash Flow (5Y)

10.80K (Cr)

Ownership Structure

Poor

Promoter Holding

26.64%
Excellent

FII Holding

24.69%
Excellent

DII Holding

27.99%
Excellent

Pledged Percentage

0.00%
Market-cap Classification
Large-cap
Established & liquid; typically steadier returns.
26.64%
Promoter Holding
1.05L (Cr)
Market Cap

Labels (e.g., "Excellent", "Good") are peer-based vs industry/sector averages — data-only, not advice

Market Data Analysis & Educational Insights

Educational evaluation of DRREDDY across key market metrics for learning purposes.

Positive Indicators

12 factors identified

Strong Return on Equity (17.96%)

Observation: Efficient use of shareholders' capital generating superior returns.

Analysis: ROE >15% indicates strong profitability and effective management. This metric suggests the company can generate substantial returns on invested capital.

Excellent ROCE Performance (22.69%)

Observation: Superior returns on capital employed across business operations.

Analysis: ROCE >15% demonstrates efficient capital deployment and strong operational performance. This indicates quality business fundamentals.

Strong Operating Margins (24.30%)

Observation: Healthy 5-year operating margins indicate pricing power and cost control.

Analysis: OPM >15% suggests operational efficiency and competitive advantages. This indicates sustainable profitability potential.

Attractive Valuation (P/E: 18.23 vs Industry: 31.77)

Observation: Trading at discount to industry peers.

Analysis: P/E below industry average may present value opportunity if fundamentals support the business case.

Consistent Growth Track Record (13.26% CAGR)

Observation: Strong 5-year sales compound annual growth rate.

Analysis: Consistent sales CAGR >12% demonstrates sustainable growth model and market opportunity execution over time.

Excellent EPS Growth (22.17% CAGR)

Observation: Outstanding 5-year earnings per share compound growth.

Analysis: EPS CAGR >15% indicates strong wealth creation potential and effective capital allocation over extended periods.

Strong Profit Growth Track Record (22.28% CAGR)

Observation: Consistent 5-year profit compound annual growth rate.

Analysis: Profit CAGR >15% demonstrates scalable business model and effective operational leverage over time.

Conservative Debt Levels (D/E: 0.16)

Observation: Low leverage provides financial flexibility and reduced risk.

Analysis: Conservative debt structure offers resilience during economic downturns and flexibility for growth investments.

Strong Interest Coverage (24.46x)

Observation: Earnings comfortably cover interest obligations.

Analysis: Interest coverage >5x indicates low financial distress risk and strong debt servicing capability.

Strong Cash Generation (₹10805.00 Cr over 5Y)

Observation: Healthy free cash flow generation supports growth and returns.

Analysis: Strong FCF provides flexibility for dividends, debt reduction, and growth investments.

Strong Institutional Confidence (FII+DII: 52.68%)

Observation: Significant professional investor participation indicates quality recognition.

Analysis: High institutional holding often signals thorough due diligence and quality business fundamentals.

Zero Share Pledging Risk

Observation: No promoter shares pledged as collateral, reducing forced-selling risk.

Analysis: Absence of share pledging eliminates potential forced-selling pressure during market stress.

Risk Factors

1 factors identified

Low Promoter Commitment (26.64%)

Observation: Reduced promoter stake may indicate limited confidence.

Analysis: Low promoter holding may raise questions about management commitment and long-term vision alignment.

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Financial Statements

Comprehensive financial data for Dr Reddys Laboratories Ltd

About DRREDDY

Business Overview

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.

Company Details

Symbol:DRREDDY
Industry:Pharmaceuticals
Sector:Pharmaceuticals

Key Leadership

Mr. Gunupati Venkateswara Prasad B.E.
Co-Chairman, MD & Member of Management Council
Mr. Kallam Satish Reddy B.Tech., M.S.
Chairman of the Board & Member of the Management Council
Mr. Erez Israeli M.B.A.
CEO & Member of the Management Council

DRREDDY Stock Details & Analysis

Key Financial Metrics

Return on Equity (ROE)17.96%
Return on Capital Employed22.69%
Operating Profit Margin (5Y)24.30%
Debt to Equity Ratio0.16
Interest Coverage Ratio24.46

Growth & Valuation

Sales Growth (5Y)13.26%
Profit Growth (5Y)22.28%
EPS Growth (5Y)22.17%
YoY Quarterly Profit Growth7.28%
YoY Quarterly Sales Growth9.83%

Frequently Asked Questions

What is the current price of Dr Reddys Laboratories Ltd (DRREDDY)?

As of 16 Jan 2026, 10:13 am IST, Dr Reddys Laboratories Ltd (DRREDDY) is currently trading at ₹1175.50. The stock has a market capitalization of ₹1.05L (Cr).

Is DRREDDY share price Overvalued or Undervalued?

DRREDDY is currently trading at a P/E ratio of 18.23x, compared to the industry average of 31.77x. Based on this relative valuation, the stock appears to be Undervalued against its sector peers.

What factors affect the Dr Reddys Laboratories Ltd share price?

Key factors influencing DRREDDY's price include its quarterly earnings growth (Sales Growth: 9.83%), raw material costs, government infrastructure spending, and institutional flows (FII/DII holding).

Is Dr Reddys Laboratories Ltd a good stock for long-term investment?

Dr Reddys Laboratories Ltd shows a 5-year Profit Growth of 22.28% and an ROE of 17.96%. Long-term investors should consider these fundamentals alongside the debt-to-equity ratio of 0.16 before investing.

How does Dr Reddys Laboratories Ltd compare with its industry peers?

Dr Reddys Laboratories Ltd competes with major peers in the Pharmaceuticals. Investors should compare DRREDDY's P/E of 18.23x and ROE of 17.96% against the industry averages to determine its competitive standing.

What is the P/E ratio of DRREDDY and what does it mean?

DRREDDY has a P/E ratio of 18.23x compared to the industry average of 31.77x. The Price-to-Earnings (P/E) ratio is calculated by dividing the current share price by earnings per share (EPS). This means investors are paying ₹18 for every ₹1 of annual earnings.

How is DRREDDY performing according to Bull Run's analysis?

DRREDDY has a Bull Run fundamental score of 59.2/100, which indicates moderate strength with some areas for improvement. This comprehensive rating is based on 15+ financial parameters including profitability, growth metrics, and valuation ratios.

What sector and industry does DRREDDY belong to?

DRREDDY operates in the Pharmaceuticals industry. This classification helps understand the competitive landscape and sector-specific trends affecting Dr Reddys Laboratories Ltd.

What is Return on Equity (ROE) and why is it important for DRREDDY?

DRREDDY has an ROE of 17.96%, which indicates excellent management efficiency and profitable operations. Return on Equity measures how efficiently Dr Reddys Laboratories Ltd generates profits from shareholders' equity.

How is DRREDDY's debt-to-equity ratio and what does it indicate?

DRREDDY has a debt-to-equity ratio of 0.16, which indicates conservative financing with low financial risk. A ratio below 1.0 generally indicates conservative financing.

What is DRREDDY's dividend yield and is it a good dividend stock?

DRREDDY offers a dividend yield of 0.63%, which means you receive ₹0.63 annual dividend for every ₹100 invested.

How has DRREDDY grown over the past 5 years?

DRREDDY has achieved 5-year growth rates of: Sales Growth 13.26%, Profit Growth 22.28%, and EPS Growth 22.17%.

What is the promoter holding in DRREDDY and why does it matter?

Promoters hold 26.64% of DRREDDY shares, with 0.00% of promoter shares pledged. High promoter holding often indicates strong management confidence.

What is DRREDDY's market capitalization category?

DRREDDY has a market capitalization of ₹105225 crores, placing it in the Large-cap category.

How volatile is DRREDDY stock?

DRREDDY has a beta of N/A. A beta > 1 suggests the stock is more volatile than the market, while a beta < 1 suggests it is less volatile.

What is the 52-week high and low for DRREDDY?

DRREDDY has a 52-week high of ₹N/A and low of ₹N/A.

What is DRREDDY's operating profit margin trend?

DRREDDY has a 5-year average Operating Profit Margin (OPM) of 24.30%, indicating the company's operational efficiency.

How is DRREDDY's quarterly performance?

Recent quarterly performance shows YoY Sales Growth of 9.83% and YoY Profit Growth of 7.28%.

What is the institutional holding pattern in DRREDDY?

DRREDDY has FII holding of 24.69% and DII holding of 27.99%. Significant institutional holding often suggests professional confidence in the stock.