Should I Buy RDY? RDY 2026 Analysis

Should You Buy Dr Reddy's Laboratories Ltd (RDY) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

13.320

1 Day change

-2.84%

52 Week Range

16.170

Analysis Updated At

2026/01/26

Dr. Reddy's Laboratories Ltd is not a strong buy at the moment for a beginner investor with a long-term strategy. The technical indicators are mixed, options data shows low trading sentiment, and the company's financial performance has shown declines in key metrics. While there are some positive catalysts, such as the approval of a generic Ozempic version, the overall data does not strongly support a buy decision at this time.

Technical Analysis

The MACD is positive and expanding, suggesting bullish momentum. However, the RSI is neutral at 64.082, and the moving averages are bearish (SMA_200 > SMA_20 > SMA_5). Key support is at 12.919, and resistance is at 13.789, with the current price at 13.68. The stock is trading near resistance, limiting immediate upside potential.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Technical Summary

Sell

Buy

Positive Catalysts

Dr. Reddy's received approval to launch a generic version of Ozempic in India, which could drive future revenue growth. The company also has a strong track record of beating EPS estimates, with a 75% beat rate over the past year.

Neutral/Negative Catalysts

The company's financial performance in Q3 2026 showed declines across key metrics: revenue (-1.02% YoY), net income (-18.84% YoY), EPS (-20.00% YoY), and gross margin (-8.61% YoY). Additionally, hedge funds and insiders are neutral, and there is no significant trading activity.

Financial Performance

In Q3 2026, revenue dropped by -1.02% YoY to ₹87.27 billion. Net income declined by -18.84% YoY, and EPS fell by -20.00%. Gross margin also decreased by -8.61% YoY to 53.63%. These declines indicate weaker financial performance.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

No recent analyst rating or price target changes were provided. Wall Street sentiment appears neutral based on the lack of significant trading trends.

Analyst Rating

Wall Street analysts forecast RDY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RDY is 0 USD with a low forecast of 0 USD and a high forecast of 0 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

Buy

Hold

Sell

Current: 13.710

Low

Averages

High

Current: 13.710

Low

Averages

High

HSBC

Hold

Buy

upgrade

AI Analysis

2025-06-05

Reason

HSBC

Price Target

AI Analysis

2025-06-05

upgrade

Hold

Buy

Reason

HSBC upgraded Dr. Reddy's to Buy from Hold with a price target of $16.90, up from $14.44. The firm believes semaglutide sales will help Dr. Reddy's to return to earnings growth path within a year of launch in key markets. While a recent court order in India has restrained Dr. Reddy's launch of semaglutide in export markets until the patent expiry of the reference brand in India in March 2026, the company will be among the first companies to launch in key markets opening up in 2026, the analyst tells investors in a research note. The firm sees a semaglutide-led earnings recovery for the company.

RDY Should I Buy

RDY Should I Buy

Should You Buy Dr Reddy's Laboratories Ltd (RDY) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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