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Today's prices ask more of Dr Reddy's than of Lupin.
At current prices, buyers of Dr Reddy's are assuming about 0% growth against 13% in its own record; for Lupin it is 0% against 17%. That shows which share needs more to go right — not which is cheaper. How far each trades from its estimated fair value is in the full valuations.
- Valuation method: Dr Reddy's on discounted cash flow; Lupin on estimate withheld.
- Size: the two are worth roughly the same on the stock market.
- Record: Dr Reddy's has grown revenue faster: Dr Reddy's compounded at about 11% a year (FY2018–FY2026) and Lupin at about 8% (FY2018–FY2026).
- What to watch: replacing revlimid at Dr Reddy's; complex us generics at Lupin.
| Dr Reddy's | Lupin | |
|---|---|---|
| Price | ₹1,380 | ₹1,980 |
| Market cap | ₹1.15L Cr | ₹0.91L Cr |
| P/E | 41.2 | 17.4 |
| P/B | 3.04 | 4.03 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Discounted cash flow | Estimate withheld |
01Two businesses
A Hyderabad generics maker with a global footprint
Dr Reddy's Laboratories was founded in Hyderabad in 1984 by Dr K. Anji Reddy. It makes generic medicines for the US, India, Russia and other emerging markets, and active pharmaceutical ingredients that it sells to other drugmakers.
A Mumbai drugmaker rebuilt
Lupin was founded in 1968 by Desh Bandhu Gupta and is based in Mumbai. It is one of India's largest generic drugmakers, with big businesses in the US and India and smaller ones across emerging markets.
02The records side by side
Dr Reddy's has grown revenue faster: Dr Reddy's compounded at about 11% a year (FY2018–FY2026) and Lupin at about 8% (FY2018–FY2026). By revenue the two are of broadly similar size. Dr Reddy's kept 12.3% of revenue as net profit in FY2026; Lupin kept 19.2% of revenue as net profit in FY2026. Dr Reddy's was profitable in every year shown; Lupin reported a net loss in FY2020 and FY2022.
Full ten-year tables and charts are on each company's page: Dr Reddy's · Lupin.
03What each price assumes
Work backwards from each share price and you can see what buyers are taking for granted — the rate each company must sustain to justify what it costs, against what its own record supports.
04What decides each one's value
- Replacing RevlimidNew US launches and other markets need to fill the gap left by one very profitable product.
- US generic pricingPrices for older generics keep falling, so the pipeline has to keep moving.
- Complex US genericsInhalers and other hard-to-make products earn more.
- India businessChronic-therapy brands grow steadily.
05What could go wrong
- FDA inspectionsAdverse findings at a plant can block US approvals and shipments.
- Pipeline delaysLate approvals push out the launches that replace lost profit.
- FDA problemsNew warning letters would hit US sales.
- Price erosionCompetition cuts generic prices.
06Which is better value?
Sign in free to see which trades further below its worth
- ✓Both fair values per share — each on the method that fits the business
- ✓Every step of both workings — growth, margins and cost of capital, with sources
- ✓Bull, base and bear cases — for each company
- ✓Downloadable reports — the full write-up for each, yours to keep
08Questions people ask
Is Dr Reddy's or Lupin better value?
That turns on how far each share trades from its estimated fair value. Both figures, with every step of the working, are in the full valuations, free to view once you sign in. On the public numbers, Dr Reddy's trades at 41.2 times earnings and 3.04 times book value, and Lupin at 17.4 times earnings and 4.03 times book value — but multiples alone mislead when two businesses work differently, which is why each is valued on the method that fits it.
What is the difference between Dr Reddy's and Lupin?
Dr Reddy's Laboratories was founded in Hyderabad in 1984 by Dr K. Lupin was founded in 1968 by Desh Bandhu Gupta and is based in Mumbai.
Are Dr Reddy's and Lupin valued the same way?
No. Dr Reddy's is valued on discounted cash flow and Lupin on estimate withheld, because forcing one model onto both would misstate at least one of them.
What does today's price assume for Dr Reddy's and Lupin?
Worked backwards from the share price, Dr Reddy's needs about 0% growth and Lupin about 0% growth, against 13% and 17% in their own records.