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RDY

Dr. Reddy's Laboratories Limited

Healthcare · $10.7B market cap

Verdict

Share price

$12.25

close of Oct 3, 2026

Fair value

$6.09

Sticker Price

Payback Price

$2.44

buy price

Overpriced

RDY is Overpriced: at $12.25 it trades 101% above its fair value of $6.09. Its buy price (Payback Price) is $2.44, 80% below today's price. Business quality is mixed: 2 of 5 key numbers clear the 10% bar.

How we valued it

Free Cash Flow. Sales grew 13% a year over the last 3 years, below the 15% we look for in a fast grower, so we value it on its free cash flow instead of an earnings forecast.

Business quality

2 of 5 clear the 10% bar. What are the Big Five?

Earnings per share growth8.6% a year✗
Equity per share growth12.6% a year✓
Sales growth10.0% a year✗
Free cash flow growth7.8% a year✗
Return on invested capital12.9%✓

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About Dr. Reddy's Laboratories Limited

Dr. Reddy's Laboratories Limited, alongside its associated companies, functions as a holistic pharmaceutical entity with a global footprint. Its business operations are divided into several key divisions. The Global Generics segment is responsible for the manufacturing and sale of both prescription and over-the-counter finished pharmaceutical products. These offerings are available either under a proprietary brand…

Drug Manufacturers - Specialty & Generic

Fair value and Payback Price are estimates from the company's reported financials, not investment advice. Prices as of the close of Oct 3, 2026. How the Payback Price works