Case study

DRREDDY

Dr. Reddy'S Laboratories Limited

Mixed signals1y model +9.5%

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

50Score

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

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

Dr. Reddy'S Laboratories Limited (DRREDDY) trades at ₹1,172,on the numbers it mixed signals, a Downstox Snapshot Score of 50/100.

On the numbers, Dr. Reddy'S Laboratories Limited (DRREDDY) mixed signals, a Downstox Snapshot Score of 50/100, weighing premium at 30.4× earnings, ROE of 11.2%, a 66% 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 2027-2031.

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

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

Market cap
₹97,824 Cr
Current price
₹1,172
P/E ratio
30.4×
P/B ratio
2.58×
Book value
₹454
Dividend yield
0.68%
ROCE
13.0%
ROE
11.2%
Piotroski F-Score
5/8

How DRREDDY ranks against the 2,373 companies in our screener

Is DRREDDY overvalued? DRREDDY P/E vs its Pharma

DRREDDY's P/E of 30.4× sits below the Pharma peer median of 33.0×, so on earnings it screens in line with peers, while its 0.68% dividend yield is above the peer median of 0.68%.

DRREDDY P/E
30.4×
Peer median P/E
33.0×
DRREDDY div yield
0.68%
Peer median yield
0.68%

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 9.8y of DRREDDY history (7%/yr drift, 22%/yr volatility).

YearLow (P10)Median target (P50)High (P90)Upside vs today
DRREDDY 2027₹969₹1,283₹1,697+9%
DRREDDY 2028₹936₹1,404₹2,106+20%
DRREDDY 2029₹927₹1,537₹2,549+31%
DRREDDY 2030₹947₹1,682₹2,988+44%
DRREDDY 2031₹966₹1,841₹3,509+57%

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?

66%
Higher in 1 year
Modelled chance the price is above today in 12 months
82%
Higher in 5 years
Modelled chance the price is above today in 5 years
32%
Doubles in 5 years
Modelled chance of reaching ₹2,344 within 5 years

The bull case for DRREDDY

  • A 10,000-path probability model puts a 66% chance the price is higher in a year, with a median target of ₹1,283 (+9%).
  • 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 ₹2,549.

The bear case & risks

  • DRREDDY's P/E of 30.4x is lower than 45% of the 2,373 NSE companies in our screener, as of 9 Aug 2026.
  • DRREDDY's return on equity of 11.2% ranks in the 56th percentile of the 2,373 NSE companies in our screener, as of 9 Aug 2026.
  • Downside scenario: the model's pessimistic (P10) 3-year path falls to ₹927.

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

Over the last 9.8 years DRREDDY compounded at 7%/year with annualized volatility of 22%. That volatility implies a 1-year 80% range of ₹969-₹1,697, the honest backbone behind any single price target.

DRREDDY price forecast, the full 60-month probability fan

Spot Price · Today
₹0
Based on 9.8 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)
9.5%
80% range₹969-₹1,697
P(price ↑)66%
P(price 2×)0%
3-Year Forecast
2029
₹0
Median (P50)
31.1%
80% range₹927-₹2,549
P(price ↑)75%
P(price 2×)14%
5-Year Forecast
2031
₹0
Median (P50)
57.1%
80% range₹966-₹3,509
P(price ↑)82%
P(price 2×)32%

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: 5/8, how financially strong is it?

5/8

The Piotroski F-Score grades financial strength on profitability, leverage and efficiency checks. Downstox scores the eight checks it can verify from published filings, so 8 is full marks. DRREDDY scores 5/8, mixed financial health.

DRREDDY MTF margin & leverage across 10 brokers

Margin Trading Facility lets you buy DRREDDY with part of the capital. Lower margin % = higher leverage. Rates compared across 10 brokers (no competitor publishes this):

BrokerMargin requiredApprox. leverage
Upstox23.23%4.3×
Zerodha22.80%4.4×
Groww22.80%4.4×
Dhan22.00%4.5×
Kotak NeoCHEAPEST20.00%5.0×
Paytm MoneyCHEAPEST20.00%5.0×
Pocketful26.85%3.7×
Anand Rathi26.70%3.7×
Bajaj Broking23.00%4.3×
Share India26.79%3.7×

Compare every broker on the DRREDDY MTF page.

DRREDDY vs peers,Pharma comparison

StockP/EDiv yieldMarket cap
DRREDDY (this stock)30.4×0.68%₹97,824 Cr
SUNPHARMA36.9×0.82%₹4.67L Cr
DIVISLAB73.7×0.36%₹2.20L Cr
CIPLA33.0×0.89%₹1.18L Cr
LUPIN18.2×0.76%₹1.08L Cr
AUROPHARMA25.5×0.24%₹96,297 Cr
BIOCON95.5×0.12%₹69,482 Cr

Fundamentals from Screener.in, as of 9 Aug 2026

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

Dr. Reddy'S Laboratories Limited (DRREDDY) is a mid-cap NSE-listed company in the Pharma sector, and a constituent of the Nifty 50 index, with a market capitalisation of ₹97,824 Cr. See more stocks on our screener.

How the DRREDDY Snapshot Score & forecast are built

The Downstox Snapshot Score is a transparent, rules-based read of Dr. Reddy'S Laboratories Limited'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 Limited (DRREDDY) a good buy?

On the numbers, Dr. Reddy'S Laboratories Limited (DRREDDY) mixed signals, a Downstox Snapshot Score of 50/100, weighing premium at 30.4× earnings, ROE of 11.2%, a 66% 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 30.4× earnings versus a peer median of 33.0×, 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 ₹1,841, with an 80% range of ₹966-₹3,509 (10,000-path Monte-Carlo).

What is the probability DRREDDY doubles in 5 years?

The modelled probability of DRREDDY reaching ₹2,344 (2×) within 5 years is 32%.

What is the bull case for DRREDDY?

A 10,000-path probability model puts a 66% chance the price is higher in a year, with a median target of ₹1,283 (+9%). Relatively low volatility (22%/yr), a steadier ride than the typical mid/small-cap.

What are the risks in DRREDDY?

DRREDDY's P/E of 30.4x is lower than 45% of the 2,373 NSE companies in our screener, as of 9 Aug 2026. DRREDDY's return on equity of 11.2% ranks in the 56th percentile of the 2,373 NSE companies in our screener, as of 9 Aug 2026.

More on DRREDDY