Is Dr Reddy's Labs overvalued or undervalued?
As of October 13, 2025, Dr Reddy's Labs is considered very attractive and undervalued, with a PE ratio of 18.54, an EV to EBITDA of 12.23, and a ROCE of 20.88%, significantly lower than its peers like Sun Pharma and Divi's Lab, indicating a compelling investment opportunity despite recent stock performance.
As of 13 October 2025, the valuation grade for Dr Reddy's Labs has moved from attractive to very attractive. The company is currently assessed as undervalued. Key ratios include a PE ratio of 18.54, an EV to EBITDA of 12.23, and a ROCE of 20.88%. In comparison to its peers, Dr Reddy's Labs stands out with a significantly lower PE ratio than Sun Pharma, which has a PE of 34.9, and Divi's Lab, which has a PE of 75.45. Additionally, while Dr Reddy's has a PEG ratio of 9.19, Cipla, which is rated as attractive, has a PEG of 1.1. Despite recent stock performance lagging behind the Sensex over the year, the strong valuation metrics suggest that Dr Reddy's Labs presents a compelling investment opportunity.
{{stockdata.stock.price.value}} {{stockdata.stock.price_difference.value}} ({{stockdata.stock.price_percentage.value}}%)
{{stockdata.stock.date.value}} | BSE+NSE Vol: {{stockdata.index_name}} Vol: {{stockdata.stock.bse_nse_vol.value}} ({{stockdata.stock.bse_nse_vol_per.value}}%)
Related Stock Links
- {{stockdata.stock.stock_name.value}} Analysis
- {{stockdata.stock.stock_name.value}} Technicals
- {{stockdata.stock.stock_name.value}} Quality
- {{stockdata.stock.stock_name.value}} Valuation
- {{stockdata.stock.stock_name.value}} Financial Trend
- {{stockdata.stock.stock_name.value}} Return Analysis
- {{stockdata.stock.stock_name.value}} Price Analysis
- {{stockdata.stock.stock_name.value}} Quarterly Result Analysis
- {{stockdata.stock.stock_name.value}} Half-Yearly Result Analysis
- {{stockdata.stock.stock_name.value}} Nine Monthly Result Analysis
- {{stockdata.stock.stock_name.value}} Annual Results
- {{stockdata.stock.stock_name.value}} Balance Sheet
- {{stockdata.stock.stock_name.value}} Profit & Loss
- {{stockdata.stock.stock_name.value}} Cash Flow
- {{stockdata.stock.stock_name.value}} News
- {{stockdata.stock.stock_name.value}} Announcements
- {{stockdata.stock.stock_name.value}} Share Holding
- {{stockdata.stock.stock_name.value}} Peer Comparison
Our weekly and monthly stock recommendations are here
Loading...
Industry
{{sm.old_ind_name }}
Market Cap
{{sm.mcapsizerank }}
Date of Entry
{{sm.date }}
Target Price
{{sm.target_price }}
({{sm.performance_target }}%)
Holding Duration
{{sm.target_duration }}
Last 1 Year Return
{{sm.performance_1y}}%
{{sm.comp_name}} price as on {{sm.todays_date}}
₹{{sm.price_as_on}} ({{sm.performance}}%)
Industry
{{sm.old_ind_name}}
Market Cap
{{sm.mcapsizerank}}
Date of Entry
{{sm.date}}
Entry Price
{{sm.opening_price}}
Last 1 Year Return
{{sm.performance_1y}}%
Related News
Most Read
