Dr. Reddy’s Laboratories Limited is a leading Indian multinational pharmaceutical company headquartered in Hyderabad, with a strong global presence in generics, complex injectables, biosimilars, and active pharmaceutical ingredients (APIs). Founded in 1984, it operates across 100+ countries and is a key supplier to the US, Europe, and emerging markets. The company has consistently delivered robust profitability, R&D-driven innovation, and regulatory compliance—making it a high-quality compounder in India’s pharma sector. As of January 2026, it trades at a reasonable valuation relative to peers, supported by strong return ratios and clean execution. This article provides a data-driven outlook on the Dr. Reddy’s Laboratories share price target 2026–2030.
Dr. Reddy’s Laboratories: Company Overview
- Founded: 1984
- Chairman & Managing Director: Mr. G. V. Prasad
- NSE Symbol: DRREDDY
- Core Business Segments:
- Generics (55%) – including complex injectables
- APIs & Custom Pharma Services (25%)
- Biosimilars & Novel Molecules (15%)
- Others (5%)
- Market Position: Among top 5 Indian pharma exporters; #3 in US generics by volume
Dr. Reddy’s benefits from a diversified product portfolio, strong USFDA compliance record, and leadership in hard-to-make molecules like oncology injectables and dermatology formulations.
Dr. Reddy’s Laboratories: Key Financial Snapshot
| Metric | Value |
|---|---|
| Current Share Price | ₹1,179 |
| Market Capitalization | ₹98,428 Cr |
| No. of Shares Outstanding | 83.46 Cr |
| 52-Week High / Low | ₹1,406 / ₹1,020 |
| P/E Ratio (TTM) | 18.23 |
| P/B Ratio | 3.12 |
| EPS (TTM) | ₹64.68 |
| Book Value (TTM) | ₹377.56 |
| ROE | 20.25% |
| ROCE | 25.60% |
| Dividend Yield | 0.68% |
| Face Value | ₹1 |
| Cash | ₹976.80 Cr |
| Debt | ₹3,492.90 Cr |
| Promoter Holding | 26.64% |
| Sales Growth (YoY) | 18.64% |
| Profit Growth (YoY) | 23.20 |
Dr. Reddy’s Laboratories Share Price Target Forecast (2026–2030)
| Year | Target Price Range (₹) |
|---|---|
| 2026 | ₹1,240 – ₹1,360 |
| 2027 | ₹1,320 – ₹1,480 |
| 2028 | ₹1,400 – ₹1,620 |
| 2029 | ₹1,480 – ₹1,780 |
| 2030 | ₹1,560 – ₹1,950 |
Dr. Reddy’s Laboratories Share Price Target 2026
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2026 | ₹1,240 | ₹1,360 |
Dr. Reddy’s reported 23.20% YoY profit growth in FY2025, driven by strong US generics performance, new product launches, and operational leverage. With ROCE of 25.60% and ROE of 20.25%, the company exemplifies capital efficiency. Trading at a P/E of 18.23x—below historical averages—the stock appears fairly valued. A 2026 target range of ₹1,240–₹1,360 assumes continued FDA approvals and stable margins.
Dr. Reddy’s Laboratories Share Price Target 2027
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2027 | ₹1,320 | ₹1,480 |
If the company sustains 15–18% earnings growth and benefits from biosimilar commercialization, EPS could reach ₹69–₹73 by FY27. Assuming a P/E of 18.5–19x, the 2027 target range of ₹1,320–₹1,480 is justified.
Dr. Reddy’s Laboratories Share Price Target 2028
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2028 | ₹1,400 | ₹1,620 |
By 2028, benefits from the R&D pipeline (e.g., insulin analogs, oncology biosimilars) and European recovery should reflect in margins. A P/E of 19–19.5x on projected EPS of ₹72–₹77 supports the ₹1,400–₹1,620 band.
Dr. Reddy’s Laboratories Share Price Target 2029
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2029 | ₹1,480 | ₹1,780 |
Long-term tailwinds include aging populations in the US/EU, India’s API push, and global demand for affordable medicines. If competition doesn’t erode pricing, EPS could reach ₹76–₹82 by FY29. At a P/E of 19–20x, the 2029 target is ₹1,480–₹1,780.
Dr. Reddy’s Laboratories Share Price Target 2030
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2030 | ₹1,560 | ₹1,950 |
Over a five-year horizon, Dr. Reddy’s appeal lies in R&D-led differentiation + global scale—not just volume. If ROE holds above 20% and dividends grow consistently, investor confidence will strengthen. A terminal P/E of 20–21x on FY30 EPS (~₹78–₹93) justifies the ₹1,560–₹1,950 range.
Dr. Reddy’s Laboratories: Shareholding Pattern
| Category | Holding (%) |
|---|---|
| Domestic Institutional Investors (DII) | 27.98% |
| Promoters | 26.64% |
| Foreign Institutional Investors (FII) | 24.69% |
| Public & Others | 9.86% |
Strong institutional ownership (52.67%) ensures liquidity and analyst coverage. Promoter holding is stable but not dominant.
Dr. Reddy’s Laboratories: Strengths vs Risks
Strengths:
- Industry-leading ROCE (25.6%) and consistent 20%+ ROE
- Strong USFDA compliance and complex generics leadership
- Debt manageable (Debt/Equity: 0.09)
- Consistent dividend payer (35–40% payout ratio)
Risks:
- US pricing pressure and ANDA delays
- Intense competition from Lupin, Sun Pharma, and global players
- Currency volatility (70%+ revenue in USD)
- Contingent liabilities of ₹12,450 Cr require monitoring
Investment Suitability
| Factor | Assessment |
|---|---|
| Risk Profile | Moderate |
| Ideal Time Horizon | 5+ years |
| Volatility | Lower than market average |
| Dividend/Income Potential | Low yield (0.68%) but reliable |
| Best For | Quality-focused investors seeking exposure to global pharma |
FAQs
Is Dr. Reddy’s a good stock to buy?
Yes—for long-term portfolios. At a P/E of 18.2x and ROE of 20.25%, it offers reasonable value relative to fundamentals. Avoid if seeking high yield or explosive growth.
What is the price target of Dr Reddy’s share price?
The Dr. Reddy’s share price target for 2026 is ₹1,240 – ₹1,360.
What is the dividend of DRL in 2025?
For FY2025, Dr. Reddy’s declared an interim dividend of ₹22/share and a final dividend of ₹22/share, totaling ₹44/share—a dividend yield of 0.68% at current prices.
What is the book value per share of Dr. Reddy’s?
As of FY2025 (TTM), the book value per share is ₹377.56.
What is Dr. Reddy’s target for 2030?
Our Dr. Reddy’s share price target for 2030 is ₹1,560 – ₹1,950, assuming sustained R&D output, margin stability, and global expansion.
Why is Dr. Reddy falling?
Despite strong fundamentals, the stock has faced short-term pressure due to:
- Profit-taking after 2024 rally (+28% in 1 year)
- Concerns about US pricing and generic erosion
- Broader rotation toward PSU banks and IT stocks
However, underlying demand and execution remain strong.
Final Verdict
Dr. Reddy’s Laboratories remains one of India’s highest-quality pharma companies—profitable, cash-generative, and globally competitive. While not cheap, its valuation is justified by execution consistency and strategic positioning.
Our Dr. Reddy’s Laboratories share price target 2026–2030 (₹1,240 to ₹1,950) reflects steady earnings growth, moderate multiple expansion, and sustained investor confidence. Upside is supported by pipeline success; downside is limited by balance sheet strength.
Disclaimer: Price targets are estimates based on publicly available data and sector analysis. They are not investment advice. Consult a SEBI-registered advisor before making decisions.
Sources
- Screener.in – Dr. Reddy’s Consolidated Page (FY2025 + TTM)
- Finology Ticker – DRREDDY Financials & Analysis
- Groww.in – Dr. Reddy’s Stock Profile
- Dr. Reddy’s Investor Presentation (Q3 FY26, Jan 2026)
- US FDA & TRAI Guidelines on Pharma Compliance
