Dr Reddy's Laboratories (FRA:RDDA) Moat Score: 7/10 (As of Jul. 06, 2026)


FRA:RDDA Dr Reddy's Laboratories Ltd FRA:RDDA
92 GF Score
Price €12.40
GF Value €12.74
Valuation Fairly Valued
! 5 Warning Signs
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What is Dr Reddy's Laboratories Moat Score?

Dr Reddy's Laboratories FRA:RDDA +2.48% 92 Moat Score is 7 as of Jul. 06, 2026. GuruFocus rates FRA:RDDA with a GF Score™ of 92/100 and a GF Value™ of €12.74 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,032 Drug Manufacturers companies, Dr Reddy's Laboratories ranks better than 98.64% on this metric.

Dr Reddy's Laboratories has the Moat Score of 7, which implies that the company might have Wide Moat - Entry-level wide moat, clearly possessing durable advantages.

Dr Reddy's Laboratories has Wide Moat: Dr Reddy's Laboratories Ltd possesses a wide moat due to its strong market leadership in generics, significant regulatory barriers, and economies of scale. Its extensive distribution network and brand strength further solidify its position.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Dr Reddy's Laboratories might have Wide Moat - Entry-level wide moat, clearly possessing durable advantages.

Dr Reddy's Laboratories  (FRA:RDDA) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Dr Reddy's Laboratories Moat Score Related Terms

FRA:RDDA vs ZTS, UTHR: Moat Score Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Dr Reddy's Laboratories's Moat Score, along with its competitors' market caps and Moat Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Dr Reddy's Laboratories Moat Score vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Dr Reddy's Laboratories's Moat Score distribution charts can be found below:

* The bar in red indicates where Dr Reddy's Laboratories's Moat Score falls into.


FRA:RDDA
92GF Score
Dr Reddy's Laboratories Ltd FRA:RDDA
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 7 mean?
Dr Reddy's Laboratories (FRA:RDDA) has a Moat Score of 7 as of Jul. 06, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Dr Reddy's Laboratories ranks #14 out of 1032 companies in the Drug Manufacturers industry, placing it in the top 1.4%.
Is Dr Reddy's Laboratories' Moat Score too high?
Dr Reddy's Laboratories' current Moat Score is 7. Based on the distribution chart, Dr Reddy's Laboratories ranks #14 out of 1032 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Dr Reddy's Laboratories has a GF Score™ of 92/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Dr Reddy's Laboratories' Moat Score compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Dr Reddy's Laboratories ranks #14 out of 1032 companies for Moat Score. This places Dr Reddy's Laboratories in the top 1% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Drug Manufacturers company?
A good Moat Score depends on the Drug Manufacturers industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Dr Reddy's Laboratories's current Moat Score is 7. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dr Reddy's Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Dr Reddy's Laboratories (FRA:RDDA) is currently considered Fairly Valued. The stock's GF Value™ is €12.74, compared to a current price of €12.40 — trading 2.7% below its estimated fair value. The current Moat Score is 7. Dr Reddy's Laboratories' overall GF Score™ is 92/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Dr Reddy's Laboratories (FRA:RDDA), the current Moat Score is 7 as of Jul. 06, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Dr Reddy's Laboratories (FRA:RDDA) Overvalued in 2026?

Based on GuruFocus' analysis, Dr Reddy's Laboratories stock appears to be undervalued. The current stock price of €12.40 is trading 2.7% below its estimated GF Value™ of €12.74. GuruFocus considers Dr Reddy's Laboratories to be Fairly Valued.

Key valuation signals for FRA:RDDA:

  • Moat Score: 7
  • GF Value™: €12.74 vs. price of €12.40 (2.7% below fair value)
  • GF Score™: 92/100 with 5 warning signs

No single metric tells the full story. See the FRA:RDDA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Dr Reddy's Laboratories Business Description

Address 8-2-337, Road No. 3, Banjara Hills, Hyderabad, TG, IND, 500 034
Dr. Reddy's is one of the largest generic drug manufacturers in the world. It has a significant presence in North America, a region that makes up roughly 40% of its generics sales, with other key markets being India (20%) and Europe (20%). Beyond simple generics, Dr. Reddy's also has a solid portfolio of injectables which make up 25% of its North America sales. In branded generic markets like India, Dr. Reddy's has established a compelling presence with its strong brand name and earned a top five spot in key therapeutic areas including oncology and gastroenterology. Dr. Reddy's also has an active pharmaceutical ingredient business that manufactures over 150 APIs and sells in over 75 countries.
92GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€12.40
Price
€12.74
GF Value