Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 21 Sep
Source: Bse
Dr. Reddy's Laboratories Limited (DRREDDY)
Large CapPharma stocks · Large cap · NSE
Dr. Reddy's Laboratories is an integrated pharmaceutical company. This call focuses on a temporary supply delay for its Semaglutide injection, a key metabolic therapy, due to an impurity issue identified during the scale-up of its synthetic API manufacturing process.
₹1,244.5
+2.00 · +0.16%
Market cap ₹1,01,367 Cr
Data qualityFresh enough for analysisQuote updated 21 Oct, 03:31 pm ISTDetails
Quote21 Oct, 03:31 pm IST
Base fundamentals14 Oct 2026 · screener
Latest result22 Jul, 09:53 pm IST
Score21 Oct, 04:30 am IST · v4.3-runtime-valuation
Tags04 Oct 2026
Coverage13/14 · 93%
Valuation2026-07-20 · Rf 6.8% · Pharma P/E 33.5 (n=187)
Technical timing lens
Trend score and candlestick chart
82Strong BullSMA20 +4.5% / mo · MACD + · sector +4.9pp vs Nifty 500 (3M)
Stock trend: 70
Sector RS: 100
Sector 3M: -0.7% vs Nifty 500 -5.6%
Pharma FPI tailwindNot confirmed
Latest mapped FPI equity flow was not positive. View sector evidence
Technical chart
DRREDDYD candles · FIT view-6.7%Latest close ₹1244.50 on 2026-10-21
Bar
-0.0%
RSI
60
MACD hist
2.61
52W pos
46%
2026-10-21O ₹1245.00H ₹1252.00L ₹1232.50C ₹1244.50Vol 12.2L sh
Up bar
Down bar
EMA 20
EMA 50
Volume + 20D avg
Result date
RSI(14)
MACD / signal
Market context
Relative performance and chart statistics
Adjusted completed-session prices, rebased to 100
DRREDDYNifty PharmaNifty 500
- DRREDDY
- +3.2%
- Nifty 500
- -6.5%
- Nifty Pharma
- -2.0%
- Vs Nifty 500
- +9.7 pp
Chart stats
21 Oct 2026- From 52W high
- -12.0%
- 52W range position
- 46%
- ATR (14)
- 2.0%
- Volume vs 20D
- 0.56x
- Avg traded value
- ₹264 Cr
- 20D price channel
- ₹1,167.2 - ₹1,252.8
₹1,414.9
₹1,101 - ₹1,414.9
₹25.5
Latest completed session
20-session average
22.3% annualized volatility
Research snapshot
What the evidence says now
Weak fundamentals, while price trend supports entry. This looks more like momentum/speculation than a clean fundamental investment setup.
Weak U-Score but strong trend: momentum may be ahead of fundamentals.
Suggested next step
Check latest quarters
Result consistency is weak; verify whether the thesis is improving or deteriorating.
U-Score
Legacy · WATCHLIST39
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
Latest result
Bad0
Revenue -5.5% · PAT -69.1% YoY
Technical
Strong Bull82
Price trend and sector-relative-strength timing.
Valuation
Legacy model+28.4%
Legacy margin-of-safety estimate; the revised evidence label remains in shadow validation.
Trust
Limited evidence60
Financial-only signal; management claim evidence is not sufficient yet.
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Latest result
Quarter ended 30 Jun 2026
Bad · 0/100Rev -6% YoY · PAT -69% YoY · margin compression · +7% QoQ
Filed 22 Jul 2026
Open results browser →| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹8,100 Cr | -5.5% | +7.3% |
| EBITDA | ₹860 Cr | -60.4% | +125.1% |
| Operating margin | 11.0% | -1400 bps | +600 bps |
| PAT | ₹436 Cr | -69.1% | +97.3% |
| PAT margin | 5.4% | -1107 bps | +245 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Fundamentals
Valuation
- P/E
- 31.50
- P/B
- 2.67
- EV/EBITDA
- 15.03
- Market Cap
- 101367.00Cr
Profitability
- ROE
- 11.20%
- ROCE
- 13.00%
- ROA
- 5.63%
- Dividend Y
- 0.66%
Growth (CAGR)
- Revenue 5Y
- 12.00%
- EPS 5Y
- 15.00%
- Revenue 3Y
- 11.00%
- EPS 3Y
- -4.00%
Balance Sheet
- Debt/Equity
- 0.20
- Interest Coverage
- 12.36×
- Altman Z
- 5.32
- Book Value
- 454.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 10/5
- OCF
- 5674.00 Cr
- EPS TTM
- 38.61
Shareholding
- Promoter Hold
- 26.63%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 40%
Financial History
Updated 21/10/2026
Revenue
₹ CrLatest: 8,100+7.3% vs prev
Net Profit
₹ CrLatest: 436+97.3% vs prev
ROE is shown only in the Annual view — quarterly equity data isn't published.
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Daily technical trend read
Bullish setupTrend is constructive — long-term uptrend intact. RSI 60.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 rising (~4.3% over last month) — short-term momentum positive.
- RSI(14) at 60 — sideways, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 12% off 52W high · 13% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Nifty 500 leadership
Relative Strength & Trend Stage
65
RS percentile
Stage 1 Base / Transition
1M return
+3.9%
3M return
+3.2%
6M return
-6.5%
1Y return
-0.5%
RS 1D
0
RS 20D
+29
Sector rank
#2
Industry rank
#3
Stage evidence
- Price is within 0.3% of the 30-week proxy.
- The 30-week proxy changed -0.9% over 20 sessions.
- The moving-average structure does not confirm Stage 2 or Stage 4.
50-DMA
price above
200-DMA
price below
Sector
leading
Industry
leading
Relative-strength line vs Nifty 500 (base 100)
262 observations
21 Oct 2026Value 104.96+1.10%
RS vs Nifty 500105
Valuation & peers
U-Score 39 · legacy U-Score band WATCHLIST · valuation evidence and comparable companies
Valuation & peers
U-Score 39 · legacy U-Score band WATCHLIST · valuation evidence and comparable companies
WATCHLIST
Fundamental score breakdown
U band · WATCHLISTValuation10/30
Growth12/25
Quality0/20
Balance Sheet8/15
Cash Flow4/10
Piotroski
8/9 (+5)
Penalties
0
Raw sum
39
Why this score?
Top U-Score contributors and drags from the latest stored fundamentals.
39/100 · legacy band WATCHLIST
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 28.4%.
- Balance sheet contributes 8/15 to the score.
Main drags
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 10/30; verify the latest quarterly trend.
- Cash flow is weaker at 4/10; verify the latest quarterly trend.
Sector valuation model
Healthcare valuation: PE/EVEBITDA with regulatory and pipeline checks
Healthcare valuation needs both earnings quality and regulatory/pipeline context.
Primary lens
PE and EV/EBITDA adjusted for product mix and R&D/pipeline quality.
Secondary checks
USFDA risk, launch pipeline, margin trend, domestic vs export mix.
Main risk check
Regulatory setbacks or one-off product cycles can distort valuation.
PE
31.5
PB
2.7
EV/EBITDA
15.0
ROE
11.2%
ROCE
13.0%
FCF Yield
—
Debt/Equity
0.2
MoS
+28.4%
Score movement
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Stored run: 21 Oct 2026
v4.3-runtime-valuation
Final score
39
Previous: 39
Legacy U-Score band
WATCHLIST
Previous: WATCHLIST
Margin of safety
+28.4%
Previous: +28.5%
Score history
12 stored score snapshots. Latest stored move: +0 points.
21 Oct 2026
v4.3-runtime-valuation
39
39
39
39
39
39
39
39
39
39
39
39
Factor attribution
No pillar movement versus the latest stored run. Historical score trend will appear after snapshot storage is enabled.
Modelled fair value
Graham Number
₹628.01
-98.2% MoS
Growth-justified P/E
45.0
Growth-justified Value
₹1,737.45
+28.4% MoS
PEG
2.10
Comparable companies
Peers
Business-comparable peers in Pharma — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.
Ticker
Name
Why peer
Score
PE
ROE
MoS
Verdict
CIPLA
Large
Cipla Limited
Pharmaceuticals
match 167
37
29.9
11.6%
-2%
WATCHLIST
IPCALAB
Large
IPCA Laboratories Limited
Pharmaceuticals
match 162
45
35.4
15.7%
-336%
WATCHLIST
AJANTPHARM
Large
Ajanta Pharma Limited
Pharmaceuticals
match 161
58
36.7
27.1%
+19%
FAIR VALUE
GLAXO
Large
GlaxoSmithKline Pharmaceuticals Limited
Pharmaceuticals
match 161
60
40.9
45.6%
+12%
UNDERVALUED
EMCURE
Large
Emcure Pharmaceuticals Limited
Pharmaceuticals
match 160
58
33.5
20.1%
+26%
FAIR VALUE
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business and thesis
Where growth can come from, and what can break the case
Thesis under stressReviewed 2026-07-16T00:41:45.221Z
Management commentary snapshot
Semaglutide Injection Supply Halted Due to API Scale-Up Impurity; Commercial Supplies Expected to Resume Late October/Early November.
A critical product's supply is temporarily halted, impacting near-term revenue expectations for Semaglutide injection. While management is confident in resolving the issue by September and resuming supply, the delay and potential inventory write-down introduce uncertainty. The long-term demand and regulatory filings remain unaffected.
Growth engines
Semaglutide Injection
To support the growing demand for Semaglutide injection globally, we scaled up the synthetic API manufacturing process.
Semaglutide Oral Tablets
There is no impact on the supply of Semaglutide oral tablets, which utilizes a different API source.
Capacity and execution
Synthetic API Manufacturing Scale-up
We scaled up the synthetic API manufacturing process at our API facility, with the intent of increasing the API output.
New Injectable Facility
We are building our facility, and we also use that for our product. It will be used for semaglutide as well as for other products.
Tailwinds
Strong Demand for Semaglutide
Nothing has changed. Unfortunately, if we had 15 million, we could supply that also. So, there is no shortage of demand, and I don't see shortage of demand also going forward.
Headwinds
API Impurity Issue
One of the impurities were found to be out of specifications upon testing of the finished drug product. It means that it was degrading while we made the formulation.
Temporary Supply Halt
There will be a halt of supply between now and September. This will result in a temporary delay to commercial supplies.
Risk radar
Further Delay in Resolution
Is there a risk that we can fail again? Always. There is confidence, but naturally there is a risk of a further delay.
Inventory Write-down
We may need to write down the batches that were associated with that. Probably, yes. These details you'll see in two weeks-time.
Partner Relationships
Some of our partners have alternatives, some of them don't. If they will choose to do to a different partnership or to go elsewhere, we'll obviously respect it.
Management accountability
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Analyst reading lens
Compare QOQ
This call is not a financial results update but an operational update on a specific product. The impact is on sequential supply momentum for future quarters (Q3 and Q4 FY27), making QoQ the relevant comparison for tracking the resumption and ramp-up of commercial supplies.
Sector KPIs management disclosed
USFDA Observations/Compliance
INTACTOur manufacturing facilities continue to operate in compliance with applicable cGMP and global regulatory requirements.
Regulatory Filings
INTACTThere is no impact on the product's existing global regulatory filings, whether approved or currently under review.
EBITDA Margin
UNDER_STRESSWe will miss to sell certain quantities in this period of time, so obviously this will be a downside of what we have discussed. All the stuff that we have discussed during our NDR, as well as with you guys remain the same.
Semaglutide Injection Supply Target (FY27)
UNDER_STRESSSubject to a successful validation, we will be on track to supply 6-7 million pens between Q3 and Q4 of FY27. This is a reduction from earlier annual targets due to the delay.
Management forward view
Commitment to Quality and Transparency
We believe we have taken the right course of action to ensure consistent product quality as we scale. It was important for us to communicate a development related to semaglutide, as early as possible.
Urgency in Resolution
We remain committed to resolving the issue with urgency and to supporting our partners and patients through a reliable long-term supply.
Long-term Partnership with OneSource
We plan to enter into a long-term relationship with OneSource on semaglutide injection. We are committed to be with OneSource actually for long term.
Thesis monitor
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Resolution of API Impurity Issue | Investigation underway to determine root cause and implement process improvements. | Successful completion of validation of the revised manufacturing process, expected around September. |
| Resumption of Commercial Supply | Halted until validation is complete. | Commercial API scale to OneSource during October, actual supply to market resuming late October/early November. |
| Semaglutide Injection Supply (FY27) | 6-7 million pens targeted between Q3 and Q4 FY27. | Confirmation of supply volumes and any further revisions to the target. |
| Inventory Write-down Impact | Likely write-down of affected batches. | Specific financial details regarding the write-down in Q1FY27 results. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trust Score
60Limited evidence · low confidenceTrust Lite
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Limited evidence: Claim history is still being built. It ranks around the 28th percentile of the scored universe and 19th percentile within Pharma. Main check: results consistency is weak at 17/100.
This is a financial-behaviour screen, not a claim-tested management reliability verdict.
Computed 21 Oct 2026
management-trust-v1
76 docs text-extracted · 42 concalls text-extracted
Score band
Limited evidence
Financial behaviour is scored, but management claims do not yet have enough outcome checks.
Relative rank
28th percentile
overall median 67 · Pharma: 19th pctile, median 70 · Large: 16th pctile, median 73
Evidence depth
Financial-only
76 documents have extracted text, but claim history is not strong enough yet.
Claim delivery
Outcome history still building
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Limited evidence · low confidenceWhat it measures
Reliability of management and financial delivery, using financial behaviour only.
Confidence
Treat this as an early read until more concalls and outcomes are matched.
Investor use
Acceptable, but check the weakest sub-score before increasing exposure.
Read Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Promoter
78
strong · holding, pledge, alignment
Cash flow
67
acceptable · profit to cash conversion
Balance sheet
89
strong · leverage and solvency
Discipline
38
weak · capital discipline
Results
17
weak · quarterly consistency
Trust positives
- ▸Promoter pledge is zero.
- ▸10 years of positive FCF.
Trust risks
- ▸2 latest quarters had PAT decline worse than 25% YoY.
- ▸ROCE trend is -8%.
- ▸Revenue CAGR is 11% but EPS CAGR is -4%.
- ▸0/4 latest quarters had positive YoY PAT growth.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Continue researching Dr. Reddy's Laboratories Limited
Important announcements & filings
Latest exchange and company disclosures found within the past two years.
Open source ↗
Announcement
Announcement under Regulation 30 (LODR)-Press Release / Media Release 18 Sep - Dr. Reddy’s signed exclusive India private-market distribution agreement for Takeda’s Qdenga; vaccine expected in 1H 2027.
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Newspaper Publication 16 Sep
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 10 Sep
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Allotment of ESOP / ESPS 10 Sep
Source: Bse
Annual report
Annual Report 2026
Source: Bse
Annual report
Annual Report 2025
Source: Bse
All information is for study purposes only. For investment decisions, consult your financial advisor. See Playbook for methodology.