Is Dr. Reddy’s Laboratories the Best Stock in Its Sector? A Look at the Numbers
- October 13, 2026
- Posted by: Neeraj Pandey
- Category: Market
Dr. Reddy’s Laboratories CMP Rs 1,233 (13 Oct 2026). Market cap Rs 1,02,707 Cr. ROE 11.07%. P/E 32.26x versus Industry P/E 36.69x.
Quick Answer
Dr. Reddy’s Laboratories is one of the names investors compare when screening the Healthcare sector, built on an 11.07% return on equity and a P/E of 32.26x against an Industry P/E of 36.69x. Whether Dr. Reddy’s Laboratories is the best stock in its sector depends on whether an investor is optimising for return ratios, valuation, or both. This article breaks down the metrics, including a comparison against named Healthcare sector peers, so you can judge that for yourself.
Is Dr. Reddy’s Laboratories the best stock in its sector? The stock trades on the NSE at Rs 1,233 as of 13 October 2026, within its 52-week range of Rs 1,101.00 to Rs 1,414.90. Dr. Reddy’s Laboratories Ltd, headquartered in Hyderabad, is one of India’s leading pharmaceutical companies, with generics, branded formulations and active pharmaceutical ingredients sold in India and overseas.
Dr. Reddy’s Laboratories sits in the Healthcare sector, and its 11.07% ROE and 32.26x P/E give a starting point for judging where it stands against comparable listed names. The rest of this article compares those numbers against verified peers and the sector’s Industry P/E benchmark.
Also read – Is Abbott India the Best Stock in Its Sector? A Look at the Numbers
Click Here – Get Free Investment Predictions
About Dr. Reddy’s Laboratories
Dr. Reddy’s Laboratories Ltd, headquartered in Hyderabad, is one of India’s leading pharmaceutical companies, with generics, branded formulations and active pharmaceutical ingredients sold in India and overseas. Generics, branded formulations and pharmaceutical ingredients across domestic and global markets make up its revenue. The stock trades about 13 percent below its 52-week high and about 12 percent above its 52-week low. At a market capitalisation of Rs 1,02,707 Cr, it is tracked as part of the Healthcare sector on Univest.
Is Dr. Reddy’s Laboratories the Best Stock in Its Sector?
Dr. Reddy’s Laboratories makes its case as the best stock in its sector primarily on valuation relative to its Industry P/E, combining an 11.07% ROE with a 32.26x P/E against the sector’s 36.69x Industry P/E. Dr. Reddy’s 32.26x P/E is below the 36.69x Industry P/E and the peer average, but its 11.07% ROE is lower than both Cipla and Sun Pharma, and its debt to equity ratio of 0.20 is higher than theirs.
| Metric | Dr. Reddy’s Laboratories |
|---|---|
| CMP (NSE) | Rs 1,233.00 |
| 52-Week High / Low | Rs 1,414.90 / Rs 1,101.00 |
| Market Cap | Rs 1,02,707 Cr |
| P/E (TTM) vs Industry P/E | 32.26x vs 36.69x |
| P/B | 2.70 |
| ROE | 11.07% |
| EPS (TTM) | Rs 38.14 |
| Dividend Yield | 0.65% |
| Debt to Equity | 0.20 |
Compare Dr. Reddy’s Laboratories Against Other Healthcare Sector Stocks
How Dr. Reddy’s Laboratories Compares Against Its Healthcare Sector Peers
The table below sets Dr. Reddy’s Laboratories against 2 other Healthcare sector names, using the same live data source for every company. A peer average row is included for P/E, ROE and debt to equity, calculated across the 2 peer companies.
| Company | Market Cap (Rs Cr) | P/E | ROE | Debt to Equity |
|---|---|---|---|---|
| Dr. Reddy’s Laboratories | 1,02,707 | 32.26 | 11.07% | 0.20 |
| Cipla | 1,06,130 | 31.62 | 11.27% | 0.02 |
| Sun Pharmaceutical Industries | 4,22,067 | 34.83 | 13.74% | 0.06 |
| Peer average (2 companies) | – | 33.23 | 12.50% | 0.04 |
Against this peer set, Dr. Reddy’s Laboratories’s 11.07% ROE is below the 12.50% peer average, and its P/E of 32.26x runs below the peer average of 33.23x. Dr. Reddy’s 32.26x P/E is below the 36.69x Industry P/E and the peer average, but its 11.07% ROE is lower than both Cipla and Sun Pharma, and its debt to equity ratio of 0.20 is higher than theirs.
What Makes Dr. Reddy’s Laboratories Worth Watching in Healthcare
- Valuation discount: A 32.26x P/E against a 36.69x Industry P/E sits below the sector benchmark.
- Lower returns: An 11.07% ROE trails Cipla at 11.27% and Sun Pharma at 13.74%.
- Leverage: A debt to equity ratio of 0.20 is higher than Cipla at 0.02 and Sun Pharma at 0.06, though still low in absolute terms.
Dr. Reddy’s Laboratories Valuation: Is It Justified?
Dr. Reddy’s 32.26x P/E is below the 36.69x Industry P/E and the peer average, but its 11.07% ROE is lower than both Cipla and Sun Pharma, and its debt to equity ratio of 0.20 is higher than theirs. As with any single stock, investors should weigh this against their own valuation discipline and risk appetite rather than the sector label alone.
Also read – Is Sun Pharma the Best Stock in Its Sector? A Look at the Numbers
Download the Univest iOS App or Univest Android App to track Dr. Reddy’s Laboratories and other Healthcare sector stocks.
How to Track Dr. Reddy’s Laboratories Before You Invest
Before deciding whether Dr. Reddy’s Laboratories deserves its label as the best stock in its sector for your own portfolio, compare it directly against Healthcare sector peers using the steps below.
- Open the Univest Screener and search for Dr. Reddy’s Laboratories to view live price, valuation ratios, and peer comparisons within the Healthcare sector.
- Compare its P/E, P/B, and ROE against other Healthcare sector stocks before deciding if the current valuation fits your strategy.
- Set a price alert around key support and resistance zones using the Univest app so you are notified of meaningful moves.
- Open a broking account on Univest if you decide to add the stock, and size the position based on your own risk appetite and portfolio allocation.
Conclusion
Dr. Reddy’s Laboratories earns a place in the best stock in its sector conversation on the strength of an 11.07% ROE and a P/E of 32.26x against a 36.69x Industry P/E, with named peer comparisons in this article backing up that picture. As with any individual stock decision, this analysis is educational and investors should do their own research or consult a SEBI-registered advisor before investing.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Is Dr. Reddy’s Laboratories the best stock in its sector?
Ans. Dr. Reddy’s Laboratories has an 11.07% ROE and trades at 32.26x P/E against a 36.69x Industry P/E, and compares below the peer average ROE of 12.50% in this article’s named comparison, so the answer depends on what an investor is prioritising.
What is the current share price of Dr. Reddy’s Laboratories?
Ans. Dr. Reddy’s Laboratories was trading at Rs 1,233.00 on the NSE as of 13 October 2026, within its 52-week range of Rs 1,101.00 to Rs 1,414.90.
What sector does Dr. Reddy’s Laboratories belong to?
Ans. Dr. Reddy’s Laboratories is classified under the Healthcare sector on Univest.
How does Dr. Reddy’s Laboratories compare to its sector peers on P/E?
Ans. Dr. Reddy’s Laboratories’s P/E of 32.26x is below the 33.23x average of the 2 named peers compared in this article.
What is Dr. Reddy’s Laboratories’s return on equity?
Ans. Dr. Reddy’s Laboratories reported a return on equity of 11.07%, which is below the 12.50% average of its named peers in this comparison.
Should I invest in Dr. Reddy’s Laboratories based on its sector position?
Ans. Dr. Reddy’s Laboratories’s sector position and metrics make it worth researching further, but any investment decision should factor in your own risk appetite, its valuation relative to peers, and independent research or advice from a SEBI-registered advisor.
{“@context”: “https://schema.org”, “@type”: “FAQPage”, “mainEntity”: [{“@type”: “Question”, “name”: “Is Dr. Reddy’s Laboratories the best stock in its sector?”, “acceptedAnswer”: {“@type”: “Answer”, “text”: “Dr. Reddy’s Laboratories has an 11.07% ROE and trades at 32.26x P/E against a 36.69x Industry P/E, and compares below the peer average ROE of 12.50% in this article’s named comparison, so the answer depends on what an investor is prioritising.”}}, {“@type”: “Question”, “name”: “What is the current share price of Dr. Reddy’s Laboratories?”, “acceptedAnswer”: {“@type”: “Answer”, “text”: “Dr. Reddy’s Laboratories was trading at Rs 1,233.00 on the NSE as of 13 October 2026, within its 52-week range of Rs 1,101.00 to Rs 1,414.90.”}}, {“@type”: “Question”, “name”: “What sector does Dr. Reddy’s Laboratories belong to?”, “acceptedAnswer”: {“@type”: “Answer”, “text”: “Dr. Reddy’s Laboratories is classified under the Healthcare sector on Univest.”}}, {“@type”: “Question”, “name”: “How does Dr. Reddy’s Laboratories compare to its sector peers on P/E?”, “acceptedAnswer”: {“@type”: “Answer”, “text”: “Dr. Reddy’s Laboratories’s P/E of 32.26x is below the 33.23x average of the 2 named peers compared in this article.”}}, {“@type”: “Question”, “name”: “What is Dr. Reddy’s Laboratories’s return on equity?”, “acceptedAnswer”: {“@type”: “Answer”, “text”: “Dr. Reddy’s Laboratories reported a return on equity of 11.07%, which is below the 12.50% average of its named peers in this comparison.”}}, {“@type”: “Question”, “name”: “Should I invest in Dr. Reddy’s Laboratories based on its sector position?”, “acceptedAnswer”: {“@type”: “Answer”, “text”: “Dr. Reddy’s Laboratories’s sector position and metrics make it worth researching further, but any investment decision should factor in your own risk appetite, its valuation relative to peers, and independent research or advice from a SEBI-registered advisor.”}}]}
