₹1155.7
-0.22% today
· 30d -1.31%
as of 2026-09-04
Price · Daily Candles
“Dr. Reddy's Q4 Profit Plummets 86% as DIIs Up Stake Amidst Sluggish Annual Revenue Growth”
Dr. Reddy's Laboratories faces a challenging period, evidenced by a significant -86.05% YoY drop in net profit to ₹221 Cr and an -11.51% YoY decline in revenue to ₹7546 Cr for Q4 2026. While the annual revenue grew by 3.24% to ₹33700 Cr, net profit fell -27.38% YoY.
BULL CASE
+DIIs increased their shareholding by 0.28% QoQ to 30.72% in Q1 2026.
+The stock is trading only -3.63% off its 52-week high of ₹1379.7.
+ML predictions indicate strong sales growth for the last 1 year, with ranks of 0.832 (recent 2-year), 0.842 (rolling 4-year), and 0.874 (stable 7-year).
+Dr. Reddy's has a low beta of 0.38, suggesting lower volatility compared to the broader market.
+The company's EBIT growth over a stable 7-year period (rank 0.807) is strong according to ML predictions.
BEAR CASE
−Q4 2026 net profit crashed -86.05% YoY to ₹221 Cr, and revenue declined -11.51% YoY to ₹7546 Cr.
−Annual net profit fell -27.38% YoY, even as revenue grew only 3.24% YoY.
−Return on Capital Employed (ROCE) at 14.0% is lower than several peers like Zydus Life (25.71%) and Cipla (25.09%).
−The stock is considered 'overvalued' with a -89.5% margin of safety and a current price of ₹1329.6 against an intrinsic value of ₹138.96.
−The profit margin (TTM) stands at 12.76%, which is considered 'Muted' by the business score.
⟳ What Changed
₹ Latest Earnings · Q ending 2026-06-30
REVENUE
₹8100 Cr
-5.51% YoY
NET PROFIT
₹436 Cr
-69.1% YoY
OPM
14.37%
-13.44pp YoY
EPS
₹5.33
PE 26.38
Intrinsic value · DCF ₹1924.80 · Margin of safety +66.5% (undervalued) · FCF yield 3.48%
◇ Sector Position
Dr. Reddy's PE of 26.38 and ROCE of 14.0% lag behind higher-performing peers like Zydus Life (PE 21.54, ROCE 25.71%) and Cipla (PE 29.52, ROCE 25.09%).
PEERPEROCE %
DRREDDY26.3814.0
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ML Forward Growth Predictions 🔒
54
SCORE / 100
Overall
6-axis composite of the sections below.
Performance
NEUTRAL
40
Valuation
REASONABLE
60
Growth
MUTED
48
Profitability
DECENT
58
Technicals
WEAK
30
Risk
LOW
90
Key Stats
TTM PE
26.38
P/B
2.94
52W HIGH
₹1414.9
OFF HIGH
-18.32%
DIV YIELD
0.6%
MKT CAP
₹96100 Cr
◉ Active Signals
MACDBearish-0.6254
RSI(14)Bearish37.23
Near 52W LowBearish4.97
Street Consensus
39 analysts₹1331.77
mean target
Low ₹1040.0Now ₹1155.7High ₹1750.0
⧉ Strategy Fit 🔒