Dr Reddy's Laboratories Ltd ADR

RDY: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$77.00	Rcdm	Vjrsnqkj

Dr. Reddy's: Well-Positioned for Future Growth Through New Products, but We Don't See a Moat

Keonhee Kim

Jun 9, 2023

After taking a fresh look at Dr. Reddy’s, we have lowered its fair value estimate to $48 from $60 per share due to our revised future outlook of the company. Our updated forecast lies on a mid-single-digit top-line growth and an annual margin compression in its core generics portfolio as well as our updated analysis, shifting the company’s moat to no-moat from narrow.

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