Case study

DRREDDY

Dr. Reddy's Laboratories

Tread carefully1y model +0.4%

Each stock's 10,000-path forecast, rendered as light.

0Score

Dr. Reddy's Laboratories (DRREDDY) Stock Analysis & Case Study

Is DRREDDY a good buy? The data-driven verdict.

Dr. Reddy's Laboratories (DRREDDY) trades at ₹1,291,on the numbers it tread carefully, a Downstox Snapshot Score of 42/100.

On the numbers, Dr. Reddy's Laboratories (DRREDDY) tread carefully, a Downstox Snapshot Score of 42/100, weighing premium at 25.7× earnings, ROE of 11.8%, a 51% model probability of trading higher in a year. Below: the full bull case, bear case, sector-relative valuation, and a probability-weighted price target for 20272031.

Last updated . Data snapshot for research, not investment advice.

DRREDDY fundamentals at a glance, PE, PB, ROE, ROCE, market cap, dividend yield

Market cap
₹1.08L Cr
Current price
₹1,291
P/E ratio
25.7×
P/B ratio
2.84×
Book value
₹454
Dividend yield
0.62%
ROCE
13.6%
ROE
11.8%
Piotroski F-Score
4/9

Is DRREDDY overvalued? DRREDDY P/E vs its Pharma

DRREDDY's P/E of 25.7× sits below the Pharma peer median of 30.0×, so on earnings it screens cheaper than peers, while its 0.62% dividend yield is above the peer median of 0.51%.

DRREDDY P/E
25.7×
Peer median P/E
30.0×
DRREDDY div yield
0.62%
Peer median yield
0.51%

DRREDDY share price target 2027, 2028, 2029, 2030, 2031, a probability view

Unlike a single guessed number, this is a probability-weighted range from a 10,000-path Monte-Carlo simulation on 2.0y of DRREDDY history (3%/yr drift, 22%/yr volatility).

YearLow (P10)Median target (P50)High (P90)Upside vs today
DRREDDY 2027₹965₹1,277₹1,688+0%
DRREDDY 2028₹867₹1,284₹1,899+1%
DRREDDY 2029₹793₹1,292₹2,093+2%
DRREDDY 2030₹743₹1,286₹2,273+1%
DRREDDY 2031₹700₹1,283₹2,417+1%

Median (P50) is the central estimate; the P10–P90 band is the 80% confidence range. Probabilities, not promises.

What is the probability DRREDDY goes up, or doubles?

51%
Higher in 1 year
Modelled chance the price is above today in 12 months
51%
Higher in 5 years
Modelled chance the price is above today in 5 years
8%
Doubles in 5 years
Modelled chance of reaching ₹2,544 within 5 years

The bull case for DRREDDY

  • Relatively low volatility (22%/yr), a steadier ride than the typical mid/small-cap.
  • Upside scenario: the model's optimistic (P90) 3-year path reaches ₹2,093.

The bear case & risks

  • At 25.7× earnings the stock carries a premium to the market, strong growth is already in the price, so any miss tends to be punished.
  • Return on equity is a soft 11.8%, capital efficiency trails higher-quality peers.
  • Downside scenario: the model's pessimistic (P10) 3-year path falls to ₹793.

DRREDDY volatility & expected range, how bumpy is the ride?

Over the last 2.0 years DRREDDY compounded at 3%/year with annualized volatility of 22%. That volatility implies a 1-year 80% range of ₹965₹1,688, the honest backbone behind any single price target.

DRREDDY price forecast, the full 60-month probability fan

Spot Price · Today
₹0
Based on 2.0 years of daily NSE data ·0.0% annualised volatility
5-yr median forecast
₹0
P(price ↑ in 5y)
0%
1-Year Forecast
2027
₹0
Median (P50)
0.4%
80% range₹965–₹1,688
P(price ↑)51%
P(price 2×)0%
3-Year Forecast
2029
₹0
Median (P50)
1.5%
80% range₹793–₹2,093
P(price ↑)52%
P(price 2×)4%
5-Year Forecast
2031
₹0
Median (P50)
0.9%
80% range₹700–₹2,417
P(price ↑)51%
P(price 2×)8%

DRREDDY price probability fan

Each band shows where 10,000 simulated paths land. The wider the fan, the more uncertainty.

Probability Fan
DRREDDY simulated paths · 60 months · 10,000 trials
P10–P90 (80%)P25–P75 (50%)Median (P50)

Probability of key outcomes

What are the odds DRREDDY hits common targets within the simulated horizon?

0%
P(↑ 1Y)
Above today's price in 1 year
0%
P(↑ 5Y)
Above today's price in 5 years
0%
P(2×)
Doubles within 5 years
0%
P(↓)
Falls below today in 5 years

Full multi-horizon detail on the DRREDDY price target & forecast page.

DRREDDY Piotroski F-Score: 4/9, how financially strong is it?

4/9

The Piotroski F-Score grades financial strength on nine profitability, leverage and efficiency checks. DRREDDY scores 4/9,mixed financial health.

DRREDDY MTF margin & leverage, Upstox, Zerodha, Groww, Dhan

Margin Trading Facility lets you buy DRREDDY with part of the capital. Lower margin % = higher leverage. Rates compared across brokers (no competitor publishes this):

BrokerMargin requiredApprox. leverage
Upstox26.6%3.8×
Zerodha22.7%4.4×
Groww22.7%4.4×
DhanCHEAPEST22.0%4.5×

Compare every broker on the DRREDDY MTF page.

DRREDDY vs peers,Pharma comparison

StockP/EDiv yieldMarket cap
DRREDDY (this stock)25.7×0.62%₹1.08L Cr
SUNPHARMA35.8×0.86%₹4.47L Cr
DIVISLAB68.7×0.44%₹1.80L Cr
CIPLA30.0×0.92%₹1.14L Cr
LUPIN18.6×0.51%₹1.07L Cr
AUROPHARMA24.4×0.27%₹86,647 Cr
BIOCON175.0×0.12%₹68,224 Cr

About Dr. Reddy's Laboratories: sector, index & market-cap context

Dr. Reddy's Laboratories (DRREDDY) is a large-cap NSE-listed company in the Pharma sector, and a constituent of the Nifty 50 index group, with a market capitalisation of ₹1.08L Cr. See more Nifty 50 stocks.

How the DRREDDY Snapshot Score & forecast are built

The Downstox Snapshot Score is a transparent, rules-based read of Dr. Reddy's Laboratories's public fundamentals plus a statistical forecast, not an analyst opinion. It rewards low-to-fair valuation, high ROE/ROCE, a strong Piotroski F-Score, a dividend, low volatility and a favourable probability of upside; it penalises rich valuations, weak capital efficiency, a low F-Score and high volatility. The price target is a 10,000-path Monte-Carlo simulation on real historical volatility, a distribution, not a single guess. The bull and bear cases are generated from the same data, so you always see both sides.

This is information, not investment advice. Do your own due diligence and consult a SEBI-registered adviser before investing.

DRREDDY analysis, FAQs

Is Dr. Reddy's Laboratories (DRREDDY) a good buy?

On the numbers, Dr. Reddy's Laboratories (DRREDDY) tread carefully, a Downstox Snapshot Score of 42/100, weighing premium at 25.7× earnings, ROE of 11.8%, a 51% model probability of trading higher in a year. This is a data snapshot for research, not investment advice.

Is DRREDDY overvalued or undervalued?

DRREDDY trades at 25.7× earnings versus a peer median of 30.0×, so it screens cheaper than its Pharma peers.

What is the DRREDDY share price target for 2031?

DRREDDY's probability-weighted 2031 median target is ₹1,283, with an 80% range of ₹700₹2,417 (10,000-path Monte-Carlo).

What is the probability DRREDDY doubles in 5 years?

The modelled probability of DRREDDY reaching ₹2,544 (2×) within 5 years is 8%.

What is the bull case for DRREDDY?

Relatively low volatility (22%/yr), a steadier ride than the typical mid/small-cap.

What are the risks in DRREDDY?

At 25.7× earnings the stock carries a premium to the market, strong growth is already in the price, so any miss tends to be punished. Return on equity is a soft 11.8%, capital efficiency trails higher-quality peers.

More on DRREDDY