Dr. Reddy’s vs Cipla: share price, P/E, ROE and financials compared
Dr. Reddy's Laboratories
Cipla
Dr. Reddy’s and Cipla at a glance
Dr. Reddy’s and Cipla are both listed in Healthcare. Dr. Reddy’s is the larger by market cap, at ₹1.1L Cr against ₹1.1L Cr for Cipla. On valuation, Dr. Reddy’s has the lower price-to-book (2.96× against 3.22×), while Cipla has the lower P/E (39.4× against 40.9×). On returns and margins, Cipla has the higher ROCE (14.9% against 14.2%), the higher ROE (8.3% against 7.3%) and the higher operating margin (17.3% against 15.9%). Over three years, Dr. Reddy’s has faster 3-year sales growth (+11.0% against +7.2% a year), while Cipla has faster 3-year profit growth (+11.5% against −1.7% a year). Cipla carries less debt for its equity, with a debt-to-equity of 0.02× against 0.19×.
Key metrics, side by side
| Metric | Dr. Reddy’sDRREDDY | CiplaCIPLA |
|---|---|---|
| Price (₹) | 1,373.00 | 1,411.00 |
| Market cap (₹ Cr) | 1,14,462 | 1,13,993 |
| P/E | 40.9× | 39.4× (the lower figure, shaded) |
| P/B | 2.96× (the lower figure, shaded) | 3.22× |
| Dividend yield, trailing | 0.58% | 0.92% (the higher figure, shaded) |
| ROE | 7.3% | 8.3% (the higher figure, shaded) |
| ROCE | 14.2% | 14.9% (the higher figure, shaded) |
| Operating margin (OPM) | 15.9% | 17.3% (the higher figure, shaded) |
| Net margin (NPM) | 8.5% | 10.4% (the higher figure, shaded) |
| Sales CAGR 3Y | +11.0% (the higher figure, shaded) | +7.2% |
| Profit CAGR 3Y | −1.7% | +11.5% (the higher figure, shaded) |
| Debt to equity | 0.19× | 0.02× (the lower figure, shaded) |
| Interest cover | 15.7× | 109.3× (the higher figure, shaded) |
| Net profit TTM (₹ Cr) | 2,799 | 2,897 |
| 1Y return | +13.8% (the higher figure, shaded) | −6.6% |
| Promoter holding | – | – |
Dr. Reddy’s vs Cipla: common questions
Which is bigger, Dr. Reddy’s or Cipla?
By market cap, Dr. Reddy’s is bigger at ₹1.1L Cr, against ₹1.1L Cr for Cipla (prices as of 6 Nov 2026). Net profit over the last twelve months was ₹2,799 Cr for Dr. Reddy’s and ₹2,897 Cr for Cipla.
Which has a lower P/E ratio, Dr. Reddy’s or Cipla?
Dr. Reddy’s trades at a P/E of 40.9× and Cipla at 39.4×. Cipla has the lower P/E. P/E is the share price divided by earnings per share; it varies a lot between industries and with growth, so it says little on its own.
Which has a higher ROE, Dr. Reddy’s or Cipla?
Dr. Reddy’s reports a return on equity of 7.3% and Cipla 8.3%. Cipla has the higher ROE. ROE is net profit as a share of shareholders’ equity.
Which is growing faster, Dr. Reddy’s or Cipla?
Over the last three years: Sales grew +11.0% a year at Dr. Reddy’s and +7.2% at Cipla, so Dr. Reddy’s grew sales faster; profit grew −1.7% a year at Dr. Reddy’s and +11.5% at Cipla, so Cipla grew profit faster. Past growth doesn’t predict future growth.