(RDY) Dr. Reddy’s Laboratories - Overview
Sector: Healthcare | Industry: Drug Manufacturers - Specialty & Generic | Exchange: NYSE (USA) | Market Cap: 11.355m USD | Total Return: -6.4% in 12m
Generic Drugs, Active Ingredients, Biologics, Vaccines, Formulations
Total Rating 53
Safety 83
Buy Signal -1.03
Drug Manufacturers - Specialty & Generic
Industry Rotation: -5.0
Industry Rotation: -5.0
Market Cap:
11.4B
Avg Turnover: 36.5M
Avg Turnover: 36.5M
Risk 3d forecast
Volatility25.1%
VaR 5th Pctl4.27%
VaR vs Median3.25%
Reward TTM
Sharpe Ratio-0.34
Rel. Str. IBD24.4
Rel. Str. Peer Group36.5
Character TTM
Beta0.118
Beta Downside0.010
Hurst Exponent0.439
Drawdowns 3y
Max DD26.61%
CAGR/Max DD0.39
CAGR/Mean DD0.99
EPS (Earnings per Share)
EPS CAGR: -46.08%
EPS Trend: -63.6%
EPS Trend: -63.6%
Last SUE: -0.02
Qual. Beats: 0
Qual. Beats: 0
Revenue
Rev. CAGR: 10.69%
Rev. Trend: 51.1%
Rev. Trend: 51.1%
Last SUE: 0.11
Qual. Beats: 0
Qual. Beats: 0
Warnings
Choppy
Tailwinds
No distinct edge detected
Description: RDY Dr. Reddy’s Laboratories
Dr. Reddy’s Laboratories Limited (RDY) is an India-based multinational pharmaceutical company specializing in the manufacture and marketing of generic formulations, active pharmaceutical ingredients (APIs), and biologics. The company operates through three primary segments: Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and a proprietary products division focused on oncology and inflammation therapies. Its diversified portfolio covers major therapeutic areas including cardiovascular, gastro-intestinal, and anti-diabetic treatments.
The company utilizes an integrated business model, controlling the supply chain from the production of raw chemical intermediates to finished dosage forms. This vertical integration is a common strategy in the generic pharmaceutical sector to mitigate pricing pressure and ensure quality control across international markets. Dr. Reddys maintains a significant global footprint, with major revenue contributions from North America, Europe, and emerging markets such as Russia.
Investors can find additional valuation metrics and peer comparisons for RDY on ValueRay. Given the capital-intensive nature of drug development and the regulatory complexities of the FDA and other global health authorities, the firm continues to allocate resources toward differentiated formulations and complex generics to maintain its competitive position.
- U.S. generic market pricing pressure impacts North American revenue growth margins
- Expansion into biosimilars and biologics drives long-term high-value pipeline development
- Regulatory compliance at manufacturing facilities influences FDA product approval timelines
- Research and development spending on differentiated formulations affects quarterly net income
- Emerging market growth in India and Russia mitigates Western pricing volatility
Piotroski VR‑10 (Strict)
7.0
| Net Income: 42.88b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA 1.83 > 1.0 |
| NWC/Revenue: 39.08% < 20% (prev 36.78%; Δ 2.31% < -1%) |
| CFO/TA 0.10 > 3% & CFO 56.55b > Net Income 42.88b |
| Net Debt (-10.27b) to EBITDA (74.65b): -0.14 < 3 |
| Current Ratio: 1.80 > 1.5 & < 3 |
| Outstanding Shares: last quarter (834.8m) vs 12m ago 0.06% < -2% |
| Gross Margin: 52.74% > 18% (prev 0.58%; Δ 5.22k% > 0.5%) |
| Asset Turnover: 63.55% > 50% (prev 66.03%; Δ -2.48% > 0%) |
| Interest Coverage Ratio: 14.38 > 6 (EBITDA TTM 74.65b / Interest Expense TTM 3.76b) |
Altman Z''
6.11
| A: 0.23 (Total Current Assets 296.00b - Total Current Liabilities 164.25b) / Total Assets 567.88b |
| B: 0.61 (Retained Earnings 345.02b / Total Assets 567.88b) |
| C: 0.10 (EBIT TTM 54.12b / Avg Total Assets 530.43b) |
| D: 1.83 (Book Value of Equity 356.34b / Total Liabilities 194.95b) |
| Altman-Z'' Score: 6.11 = AAA |
Beneish M
-3.06
| DSRI: 0.87 (Receivables 99.22b/109.79b, Revenue 337.10b/325.54b) |
| GMI: 1.11 (GM 52.74% / 58.50%) |
| AQI: 0.95 (AQ_t 0.28 / AQ_t-1 0.29) |
| SGI: 1.04 (Revenue 337.10b / 325.54b) |
| TATA: -0.02 (NI 42.88b - CFO 56.55b) / TA 567.88b) |
| Beneish M-Score: -3.06 (Cap -4..+1) = AA |
What is the price of RDY shares?
As of May 20, 2026, the stock is trading at USD 13.45 with a total of 1,740,215 shares traded.
Over the past week, the price has changed by +7.95%, over one month by +2.75%, over three months by -6.27% and over the past year by -6.40%.
Over the past week, the price has changed by +7.95%, over one month by +2.75%, over three months by -6.27% and over the past year by -6.40%.
Is RDY a buy, sell or hold?
Dr. Reddy’s Laboratories has received a consensus analysts rating of 3.50.
Therefor, it is recommend to hold RDY.
- StrongBuy: 2
- Buy: 0
- Hold: 1
- Sell: 0
- StrongSell: 1
What are the forecasts/targets for the RDY price?
| Analysts Target Price | 14 | 4.4% |
Dr. Reddy’s Laboratories (RDY) - Fundamental Data Overview
as of 20 May 2026
P/E Trailing = 26.1538 P/E Forward = 24.1546
P/S = 0.0338
P/B = 2.7969
P/EG = 3.6574
Revenue TTM = 337.10b USD
EBIT TTM = 54.12b USD
EBITDA TTM = 74.65b USD
Long Term Debt = 11.96b USD (estimated: total debt 75.81b - short term 63.85b)
Short Term Debt = 63.85b USD (from shortTermDebt, last quarter)
Debt = 75.81b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -10.27b USD (recalculated: Debt 75.81b - CCE 86.08b)
Enterprise Value = 1.09b USD (11.35b + Debt 75.81b - CCE 86.08b)
Interest Coverage Ratio = 14.38 (Ebit TTM 54.12b / Interest Expense TTM 3.76b)
EV/FCF = 0.04x (Enterprise Value 1.09b / FCF TTM 24.26b)
FCF Yield = 2.23k% (FCF TTM 24.26b / Enterprise Value 1.09b)
FCF Margin = 7.20% (FCF TTM 24.26b / Revenue TTM 337.10b)
Net Margin = 12.72% (Net Income TTM 42.88b / Revenue TTM 337.10b)
Gross Margin = 52.74% ((Revenue TTM 337.10b - Cost of Revenue TTM 159.31b) / Revenue TTM)
Gross Margin QoQ = 44.82% (prev 53.63%)
Tobins Q-Ratio = 0.00 (Enterprise Value 1.09b / Total Assets 567.88b)
Interest Expense / Debt = 1.42% (Interest Expense 1.07b / Debt 75.81b)
Taxrate = 22.53% (13.00b / 57.68b)
NOPAT = 41.92b (EBIT 54.12b * (1 - 22.53%))
Current Ratio = 1.80 (Total Current Assets 296.00b / Total Current Liabilities 164.25b)
Debt / Equity = 0.21 (Debt 75.81b / totalStockholderEquity, last quarter 369.60b)
Debt / EBITDA = -0.14 (Net Debt -10.27b / EBITDA 74.65b)
Debt / FCF = -0.42 (Net Debt -10.27b / FCF TTM 24.26b)
Total Stockholder Equity = 362.63b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.08% (Net Income 42.88b / Total Assets 567.88b)
RoE = 11.83% (Net Income TTM 42.88b / Total Stockholder Equity 362.63b)
RoCE = 14.45% (EBIT 54.12b / Capital Employed (Equity 362.63b + L.T.Debt 11.96b))
RoIC = 10.29% (NOPAT 41.92b / Invested Capital 407.38b)
WACC = 1.79% (E(11.35b)/V(87.16b) * Re(6.40%) + D(75.81b)/V(87.16b) * Rd(1.42%) * (1-Tc(0.23)))
Discount Rate = 6.40% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.92%
Shares (quarterly) Correlation: 25.01 | Cagr: 104.6%
[DCF] Terminal Value 86.05% ; FCFF base≈19.37b ; Y1≈18.82b ; Y5≈18.85b
[DCF] Fair Price = 687.4 (EV 562.10b - Net Debt -10.27b = Equity 572.37b / Shares 832.6m; r=6.0% [WACC]; 5y FCF grow -3.95% → 3.0% )
EPS Correlation: -63.57 | EPS CAGR: -46.08% | SUE: -0.02 | # QB: 0
Revenue Correlation: 51.13 | Revenue CAGR: 10.69% | SUE: 0.11 | # QB: 0
EPS current Year (2027-03-31): EPS=51.40 | Chg30d=N/A | Revisions=-20% | GrowthEPS=+0.0% | GrowthRev=+6.3%
EPS next Year (2028-03-31): EPS=64.96 | Chg30d=N/A | Revisions=-20% | GrowthEPS=+26.4% | GrowthRev=+10.3%