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RDYDr. Reddy's Laboratories LtdSell4.0·$13.23-0.08%
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Dr. Reddy's Laboratories Ltd (RDY) Stock Analysis

Falling Knife setup

SellVALUE-TRAP 2/5High Confidence

Healthcare · Drug Manufacturers - Specialty & Generic

Sell if holding. Analyst target reached at $13.23 — A.R:R is negative (-0.9) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.7).

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... Read more

QualityF-score7 / 9FCF yield14.77%
IncomeYield0.63%(5y avg 0.72%)Payout15.60%sustainable
Stop $12.79Target $13.61(resistance)A.R:R -0.9:1
Analyst target$14.17+7.1%5 analysts
$13.61our TP
$13.23price
$14.17mean
$11
$17

Sell if holding. Analyst target reached at $13.23 — A.R:R is negative (-0.9) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.7). Chart setup: Death cross, below all MAs, RSI 40, MACD bearish. Score 4.0/10, high confidence.

Passes 6/9 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 45d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and death cross (50MA < 200MA). Suitability: moderate.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-06-09
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Thu, Jul 23, 202645d to earnings· next earnings call

Thesis

Rewards
Sector modifier (Healthcare): +0.5
Risks
Analyst target reached - limited upside remaining
V7 low-quality RISK_OFF penalty: -0.5 (Q=4.7)
Consecutive earnings misses (2)

Key Metrics

P/E (TTM)25.0
P/E (Fwd)19.9
Mkt Cap$11.0B
EV/EBITDA0.1
Profit Mgn12.8%
ROE11.8%
Rev Growth-11.6%
Beta0.26
Dividend0.63%
Rating analysts44

Quality Signals

Piotroski F7/9MoatNarrow

Options Flow

P/C2.57bearish
IV60%elevated

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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Methodology · Editorial policy & full disclaimer

Rating Breakdown

3 floor-breakers

Revenue shrinking — -11.6% YoY. Growth thesis broken unless recovery story develops.static

Revenue Growth
0.0
Earnings Growth
0.0
Declining revenue: -12%

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Volume
0.6
Obv
1.0
Ma Position
1.5
Macd
3.4
Rsi
3.5
Volume distribution (falling OBV)Below 200-MA, MA slope flat

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Growth Rank
0.7
Quality Rank
5.9
Value Rank
6.9
GatesMomentum 2.0<4.5A.R:R -0.9=NEGATIVEDeath cross (50MA < 200MA)Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 45d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARFalling KnifeSuitability: Moderate
RSI
40 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $12.19Resistance $13.89

Price Targets

$13
$14
A.Upside+2.9%
A.R:R-0.9:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! Target reached (-6.8% upside)
! momentum at 2.0 (below the engine's 4.5 threshold)
! Negative risk/reward — downside exceeds upside

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-07-23 (45d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is RDY stock a buy right now?

Sell if holding. Analyst target reached at $13.23 — A.R:R is negative (-0.9) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.7). Chart setup: Death cross, below all MAs, RSI 40, MACD bearish. Prior stop was $12.79. Score 4.0/10, high confidence.

What is the RDY stock price target?

Take-profit target: $13.61 (+2.9% upside). Prior stop was $12.79. Stop-loss: $12.79.

What are the risks of investing in RDY?

Analyst target reached - limited upside remaining; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.7); Consecutive earnings misses (2).

Is RDY overvalued or undervalued?

Dr. Reddy's Laboratories Ltd trades at a P/E of 25.0 (forward 19.9). TrendMatrix value score: 6.1/10. Verdict: Sell.

What do analysts say about RDY?

44 analysts cover RDY with a consensus score of 3.4/5. Average price target: $14.

What does Dr. Reddy's Laboratories Ltd do?Dr. Reddy's Laboratories Limited, together with its subsidiaries, operates as an integrated pharmaceutical company...

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 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. Its Others segment engages in developing therapies in the fields of oncology and inflammation; and research, development, and commercialization 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, vitamins and minerals, and pain management. Dr. Reddy's Laboratories Limited was incorporated in 1984 and is headquartered in Hyderabad, India.

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