Dr. Reddy's Laboratories (DRREDDY) had a P/E of 40.9× on 6 Nov 2026, above the industry P/E of 28.7×. It earns ROCE of 14% and ROE of 7.3%, and sales grew 11% a year over 3 years while net profit fell 1.7%. Its dividend yield is 0.6%, and debt is 0.19× equity. It is a large-cap company with a market cap of ₹1.1 lakh crore, ranked 6th of 154 Drug Manufacturers (Specialty & Generic) companies by market cap; the shares rose 14% over the past year.
- ₹1,358.40
- ₹1,373.00
- ₹1,358.40
- ₹1,366.00
- 13.4 L
Health check
- ReturnsIn line
+13.8% over a year, better than 3 of 7 peers.
- Price tagPricier
P/E 40.9 vs industry 28.7.
- GrowthSlow
Sales +11.0%, profit −1.7% a year over 3 years.
- ProfitabilityAverage
ROCE 14.2% vs peer median 17.9%.
- Balance sheetFair
Debt 0.19× equity, interest covered 15.7×, Piotroski 4 of 9.
- Red flags3 to check
Return on equity is low at 7.3%.
Large cap
Market sensitivity
Key metrics
- Market cap
- ₹1.1L Cr
- Large cap
- P/E
- 40.9
- Industry 28.7
- Price to book
- 2.96
- Peers 5.97
- Dividend yield
- 0.58%
- ROE
- 7.3%
- Peers 14.7%
- ROCE
- 14.2%
- Peers 17.9%
- Debt to equity
- 0.19
- Debt ₹7,229 Cr
- EPS (TTM)
- ₹33.59
- Face value ₹1
- OPM (TTM)
- 15.9%
- Net margin 8.5%
- Sales growth
- −1.5%
- Latest quarter vs a year ago
- Profit growth
- −35.6%
- Latest quarter vs a year ago
- Price to sales
- 3.47
- EV/EBITDA 23.0
Strengths and risks
Strengths
- Positive operating cash flow in each of the last 4 years.
Risks to check
- Return on equity is low at 7.3%.
- Quarterly profit down 35.6% on a year ago.
- Quarterly sales down 1.5% on a year ago.
About Dr. Reddy's Laboratories
Dr. Reddy's Laboratories Limited, together with its subsidiaries, operates as an integrated pharmaceutical company North America, Europe, India, Russia, and internationally. The company operates through Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Others segment. Its Global Generics segment manufactures and markets prescription and over-the-counter finished pharmaceutical products that are marketed under a brand name or as a…
- Headquarters
- Hyderabad
- Employees
- 27,527
- Sector
- Healthcare
- ISIN
- INE089A01031
- Website
- drreddys.com
Price range
- Avg volume (3M)
- 19.5 L
- 1-year return
- plus 13.8%
- From 52-week high
- minus 3.0%
Analyst consensus
Next results expected around 21 Jan 2027
Peers · Drug Manufacturers - Specialty & Generic
| Company | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SUNPHARMASun Pharmaceutical Industries | 1,860.00 | plus 1.69% | 4,46,276 | 40.7 | 4.99 | 17.9% | 13.1% | 28.2% | 10.4% | 10.6% | 0.86% | plus 8.2% |
| DIVISLABDivi's Laboratories | 10,320.50 | plus 1.78% | 2,73,977 | 93.6 | 16.35 | 19.0% | 16.2% | 34.9% | 11.0% | 12.1% | 0.29% | plus 49.0% |
| TORNTPHARMTorrent Pharmaceuticals | 4,750.00 | plus 0.85% | 1,80,675 | 80.2 | 9.83 | 9.1% | 15.7% | 33.7% | 13.3% | 20.2% | 0.80% | plus 31.7% |
| LAURUSLABSLaurus Labs | 2,340.00 | minus 0.26% | 1,26,433 | 94.4 | 20.86 | 19.5% | 24.0% | 30.4% | 3.8% | 4.0% | 0.09% | plus 138.6% |
| ZYDUSLIFEZydus Lifesciences | 1,197.90 | plus 0.41% | 1,19,491 | 28.6 | 4.29 | 19.0% | 14.7% | 26.2% | 16.5% | 37.0% | 0.08% | plus 22.8% |
| DRREDDYDr. Reddy's Laboratories | 1,373.00 | plus 0.51% | 1,14,462 | 40.9 | 2.96 | 14.2% | 7.3% | 15.9% | 11.0% | −1.7% | 0.58% | plus 13.8% |
| CIPLACipla | 1,411.00 | plus 0.49% | 1,13,993 | 39.4 | 3.22 | 14.9% | 8.3% | 17.3% | 7.2% | 11.5% | 0.92% | minus 6.6% |
| MANKINDMankind Pharma | 2,540.00 | plus 0.87% | 1,04,913 | 46.8 | 5.97 | 13.7% | 13.6% | 26.5% | 17.7% | 14.3% | 0.00% | plus 6.3% |
| Median of 7 peers | – | 0.85% | 1,26,433 | 46.8 | 5.97 | 17.9% | 14.7% | 28.2% | 11.0% | 12.1% | 0.29% | 22.8% |
Quarterly results
| ₹ Cr | Jun 25 | Sep 25 | Dec 25 | Mar 26 | Jun 26 | Sep 26 |
|---|---|---|---|---|---|---|
| – | 8,805 | 8,727 | 7,516 | 8,071 | 8,671 | |
| – | 6,483 | 6,773 | 6,876 | 7,230 | 6,863 | |
| – | 2,323 | 1,954 | 641 | 841 | 1,808 | |
| – | 26.4% | 22.4% | 8.5% | 10.4% | 20.8% | |
| – | 174 | 81.9 | 480 | 141 | 84.2 | |
| – | 90.7 | 94.4 | 106 | 126 | 125 | |
| 247 | 505 | 521 | 558 | 537 | 527 | |
| – | −66.2 | 122 | −258 | 234 | −12.3 | |
| – | 1,835 | 1,543 | 200 | 553 | 1,228 | |
| – | 22.2% | 22.9% | −10.8% | 21.3% | 25.6% | |
| – | 1,437 | 1,210 | 221 | 444 | 925 | |
| 17.02 | – | 14.52 | 2.65 | 5.32 | 11.10 |
Profit & loss
- Sales CAGR 3Y
- +11.0%
- Profit CAGR 3Y
- −1.7%
- EPS CAGR 3Y
- −1.7%
- ROE
- 7.3%
| ₹ Cr | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|
| 24,588 | 27,916 | 32,554 | 33,593 | |
| – | +13.5% | +16.6% | +3.2% | |
| 17,419 | 19,902 | 23,646 | 26,521 | |
| 7,169 | 8,015 | 8,907 | 7,073 | |
| 29.2% | 28.7% | 27.4% | 21.1% | |
| 155 | 243 | 289 | 386 | |
| 143 | 171 | 283 | 374 | |
| 1,264 | 1,484 | 1,706 | 2,061 | |
| 119 | 585 | 471 | 457 | |
| 6,037 | 7,187 | 7,678 | 5,482 | |
| 25.3% | 22.5% | 25.4% | 22.5% | |
| 4,507 | 5,568 | 5,654 | 4,285 | |
| – | +23.6% | +1.5% | minus 24.2% | |
| 54.17 | 66.80 | 67.78 | 51.42 |
Forecast
Balance sheet
| ₹ Cr | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|
| 83.3 | 83.4 | 83.4 | 83.5 | |
| 23,016 | 27,972 | 33,255 | 37,623 | |
| 1,347 | 2,002 | 4,677 | 7,734 | |
| 7,739 | 8,695 | 11,284 | 12,494 | |
| 32,185 | 38,752 | 49,299 | 57,935 | |
| 6,646 | 7,689 | 9,776 | 11,593 | |
| 996 | 1,446 | 2,484 | 1,541 | |
| 536 | 526 | 1,520 | 1,637 | |
| 6,180 | 8,147 | 5,791 | 8,781 | |
| 17,828 | 20,945 | 29,728 | 34,383 | |
| 32,185 | 38,752 | 49,299 | 57,935 |
Cash flow
| ₹ Cr | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|
| 5,888 | 4,543 | 4,643 | 5,676 | |
| −4,137 | −4,028 | −5,808 | −6,551 | |
| −2,686 | −376 | 1,891 | 829 | |
| −936 | 139 | 726 | −46.8 | |
| −1,887 | −2,744 | −3,440 | −3,843 | |
| 4,001 | 1,800 | 1,203 | 1,833 | |
| −498 | −665 | −666 | −666 |
Shareholding pattern
NSE hasn’t returned a shareholding pattern for this company. Institutions hold about 53.8% (Yahoo estimate).
Major shareholders
Filings & events
News
No recent news coverage found.