RDY
HealthcareDr. Reddy's Laboratories Limited · Drug Manufacturers - Specialty & Generic · $11B
What is Dr. Reddy's Laboratories Limited?
Dr. Reddy's Laboratories is a large-cap, globally integrated pharmaceutical company headquartered in Hyderabad, India. It serves patients and healthcare systems across multiple continents through generics, active ingredients, and proprietary formulations.
Dr. Reddy's generates revenue across four segments: Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), Proprietary Products, and Others. The Global Generics segment sells branded and unbranded finished dosage forms worldwide, including a biologics business. The PSAI segment supplies active pharmaceutical ingredients and contract research services. Proprietary Products focuses on differentiated formulation development, while the Others segment pursues oncology and inflammation therapies.
The company was incorporated in 2001 and is headquartered in Hyderabad, India.
- Generic prescription and over-the-counter finished pharmaceuticals
- Active pharmaceutical ingredients and intermediates (PSAI)
- Proprietary and differentiated formulation development
- Oncology and inflammation pipeline therapies
Is RDY a Good Stock to Buy?
UQS Score rates RDY as Good overall, reflecting a balanced profile with meaningful strengths and some areas that warrant attention.
The Quality and Risk pillars both register as Good, suggesting the business maintains reasonable operational discipline and a manageable risk profile relative to sector peers. The Valuation pillar is rated Attractive, meaning the stock does not appear expensive on a fundamental basis.
The Moat and Growth pillars are both rated Weak, indicating limited competitive differentiation and below-average near-term growth momentum compared to peers.
See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →
Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does RDY pay dividends?
Yes — Dr. Reddy's Laboratories Limited pays a dividend.
Dr. Reddy's pays a regular dividend, which is relatively uncommon among global generics companies still investing heavily in pipeline development. This reflects a degree of financial confidence from management. Income-oriented investors may find the dividend cadence appealing, though the primary return driver remains the core pharmaceutical business.
When does RDY report earnings?
Dr. Reddy's Laboratories reports earnings on a quarterly cadence, consistent with its listing obligations as a US-traded ADR.
The company's earnings profile reflects the mixed dynamics of its pillar ratings — steady quality and risk management offset by softer growth signals. Revenue contributions vary across segments depending on generic pricing trends and active ingredient demand cycles.
For the most recent quarter's results, visit Dr. Reddy's Laboratories' official investor relations page.
RDY Price History
-8.1% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Dr. Reddy's Laboratories Limited?
Based on Dr. Reddy's Laboratories Limited's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
RDY Long-term Outlook
The fundamental outlook for RDY is shaped by its Good Risk rating and Attractive Valuation, which together suggest a degree of downside cushion. However, the Weak Growth pillar indicates that near-term revenue expansion may be modest. The company's diversified segment structure provides some stability, but competitive pressure in generics and limited moat strength could constrain upside.
Growth drivers
- Expansion of the Global Generics portfolio into new geographies
- Growing demand for active pharmaceutical ingredients from third-party manufacturers
- Advancement of proprietary and differentiated formulation pipeline
Key risks
- Intense pricing pressure in the global generics market
- Weak Moat rating signals limited pricing power versus branded peers
- Regulatory and approval risks across multiple international markets
RDY vs Peers
Dr. Reddy's operates in a competitive pharmaceutical landscape alongside companies with distinct business models and therapeutic focuses.
Elanco focuses exclusively on animal health products, giving it a completely different end-market than Dr. Reddy's human pharmaceutical portfolio.
Neurocrine concentrates on central nervous system and endocrine disorders, operating as a more specialized, innovation-driven company compared to Dr. Reddy's broad generics base.
Regencell is a smaller, early-stage bioscience company pursuing traditional Chinese medicine-based therapies, representing a very different scale and risk profile.
Frequently Asked Questions
What does Dr. Reddy's Laboratories do?
Dr. Reddy's is an integrated pharmaceutical company that manufactures and sells generic medicines, active pharmaceutical ingredients, and proprietary formulations globally. It also has a biologics business and an oncology-focused pipeline. The company serves patients across gastro-intestinal, cardiovascular, dermatology, oncology, and several other therapeutic categories.
Does RDY pay dividends?
Yes, Dr. Reddy's Laboratories pays a regular dividend. This is notable for a generics-focused pharmaceutical company that also continues to invest in pipeline development. Investors seeking income alongside pharmaceutical exposure may find this dividend policy relevant to their evaluation.
When does RDY report earnings?
Dr. Reddy's reports earnings on a quarterly basis, in line with its obligations as a US-listed ADR. For the exact schedule and most recent results, check the investor relations section of the company's official website.
Is RDY a good stock to buy?
UQS Score rates RDY as Good overall. The stock shows strength in Quality, Risk, and Valuation pillars, while Growth and Moat are rated Weak. Whether it fits your portfolio depends on your investment goals. The full pillar breakdown is available to UQS Pro members.
Is RDY overvalued?
The UQS Valuation pillar for RDY is rated Attractive, suggesting the stock is not considered expensive relative to its fundamentals. This does not guarantee price appreciation, but it indicates the market may not be pricing in excessive optimism for the company's outlook.
How does RDY compare to its competitors?
Dr. Reddy's broad generics and active ingredients model differs from peers like Neurocrine Biosciences, which focuses on specialized CNS therapies, and Elanco, which serves the animal health market. RDY's diversified segment structure gives it wider geographic reach but also exposes it to generics pricing pressure.
What is RDY's market cap bracket?
Dr. Reddy's Laboratories is classified as a large-cap stock. This places it among the more established and liquid names in the global pharmaceutical sector, typically associated with greater financial stability than mid- or small-cap peers.
Who founded Dr. Reddy's Laboratories?
Dr. Reddy's Laboratories was founded by Dr. Anji Reddy, a prominent Indian pharmaceutical entrepreneur. The company grew from its origins in India to become one of the country's largest and most internationally recognized pharmaceutical groups. Further founding history is widely available through public sources.
Is RDY a long-term quality indicator?
From a quality perspective, RDY's Good ratings in Quality and Risk pillars suggest a reasonably stable operational foundation for long-term holders. However, the Weak Moat rating means the company may face ongoing competitive pressure. Pro members can view the complete analysis to assess long-term fit.
What is the main competitive advantage of Dr. Reddy's Laboratories?
Dr. Reddy's scale across generics, active ingredients, and proprietary formulations provides operational diversification. Its established presence in multiple geographies and therapeutic categories offers some resilience. That said, the UQS Moat pillar is rated Weak, reflecting the structural pricing challenges common in the generics industry.
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Pro Analysis
RDY — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 21, 2026 | 46.8 | 50.3 | 31.0 | 17.7 | 71.6 | 81.4 | -0.1 |
| May 17, 2026 | 46.9 | 50.3 | 31.0 | 17.6 | 71.6 | 82.3 | -6.3 |
| May 14, 2026 | 53.2 | 64.3 | 31.0 | 25.0 | 76.0 | 86.9 | -0.2 |
| May 12, 2026 | 53.4 | 64.2 | 31.0 | 26.9 | 76.0 | 85.2 | -0.8 |
| May 7, 2026 | 54.2 | 64.5 | 31.0 | 28.0 | 76.0 | 89.2 | 0.0 |
| May 1, 2026 | 54.2 | 64.5 | 31.0 | 28.0 | 76.0 | 88.9 | 0.0 |
| Apr 27, 2026 | 54.2 | 64.5 | 31.0 | 28.2 | 76.0 | 88.9 | -0.1 |
| Apr 19, 2026 | 54.3 | 64.5 | 31.0 | 28.5 | 76.0 | 88.9 | 0.0 |
| Apr 18, 2026 | 54.3 | 64.5 | 31.0 | 28.5 | 76.0 | 89.2 | -1.6 |
| Apr 16, 2026 | 55.9 | 64.5 | 31.0 | 28.4 | 76.0 | 100.0 | -0.1 |
RDY — Pillar Breakdown
Quality
— 50.4/100 (25%)Dr. Reddy's Laboratories Limited has average quality metrics, with room for improvement in margins or capital efficiency.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 17.6/100 (20%)Dr. Reddy's Laboratories Limited faces growth headwinds with declining or stagnant revenue trends.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 71.6/100 (15%)Dr. Reddy's Laboratories Limited maintains a reasonable risk profile with manageable debt levels.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 81.1/100 (15%)Dr. Reddy's Laboratories Limited appears attractively valued relative to its earnings, cash flows, and sector peers.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
Enterprise value multiple relative to sector median.
Moat
— 31/100 (25%)Dr. Reddy's Laboratories Limited operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for RDY.
Score Composition
Financial Data
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How is the RDY UQS Score Calculated?
The UQS (Unified Quality Score) for Dr. Reddy's Laboratories Limited is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Dr. Reddy's Laboratories Limited's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Dr. Reddy's Laboratories Limited is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.