On this page ▾
Today's prices ask more of Dr Reddy's than of Zydus Lifesciences.
At current prices, buyers of Dr Reddy's are assuming about 0% growth against 13% in its own record; for Zydus Lifesciences it is 0% against 15%. 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: both on discounted cash flow.
- Size: the two are worth roughly the same on the stock market.
- Record: On revenue the two have grown at much the same pace: Dr Reddy's compounded at about 11% a year (FY2018–FY2026) and Zydus Lifesciences at about 11% (FY2018–FY2026).
- What to watch: replacing revlimid at Dr Reddy's; us launches at Zydus Lifesciences.
| Dr Reddy's | Zydus Lifesciences | |
|---|---|---|
| Price | ₹1,380 | ₹1,190 |
| Market cap | ₹1.15L Cr | ₹1.19L Cr |
| P/E | 41.2 | 28.4 |
| P/B | 3.04 | 4.38 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Discounted cash flow | Discounted cash flow |
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.
From Cadila Healthcare to Zydus
Zydus Lifesciences, based in Ahmedabad and renamed from Cadila Healthcare in 2022, is one of India's larger drugmakers. It sells generic medicines in the US, branded prescriptions in India and has a growing pipeline of specialty and biological products.
02The records side by side
On revenue the two have grown at much the same pace: Dr Reddy's compounded at about 11% a year (FY2018–FY2026) and Zydus Lifesciences at about 11% (FY2018–FY2026). By revenue the two are of broadly similar size. Dr Reddy's kept 12.3% of revenue as net profit in FY2026; Zydus Lifesciences kept 18.9% of revenue as net profit in FY2026.
Full ten-year tables and charts are on each company's page: Dr Reddy's · Zydus Lifesciences.
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.
- US launchesNew and complex generics drive US growth.
- India brandsSteady domestic prescriptions support cash flow.
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 inspectionsAdverse findings can block US approvals.
- US price erosionGeneric prices fall as competitors enter.
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 Zydus Lifesciences 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 Zydus Lifesciences at 28.4 times earnings and 4.38 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 Zydus Lifesciences?
Dr Reddy's Laboratories was founded in Hyderabad in 1984 by Dr K. Zydus Lifesciences, based in Ahmedabad and renamed from Cadila Healthcare in 2022, is one of India's larger drugmakers.
Are Dr Reddy's and Zydus Lifesciences valued the same way?
Yes — both on discounted cash flow, so their workings compare like for like.
What does today's price assume for Dr Reddy's and Zydus Lifesciences?
Worked backwards from the share price, Dr Reddy's needs about 0% growth and Zydus Lifesciences about 0% growth, against 13% and 15% in their own records.