(RDY) Dr. Reddy’s Laboratories - Ratings and Ratios
Generic Medicines, Active Ingredients, Vaccines, Oncology Treatments
RDY EPS (Earnings per Share)
RDY Revenue
Description: RDY Dr. Reddy’s Laboratories
Dr. Reddys Laboratories Ltd is a diversified pharmaceutical company operating globally, with a presence in North America, Europe, India, Russia, and other international markets. The company is organized into three main business segments: Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Others. The Global Generics segment is the largest contributor, focusing on developing and marketing generic versions of branded pharmaceuticals, as well as biologics. The PSAI segment provides active pharmaceutical ingredients and intermediates to other manufacturers, while the Others segment is involved in developing new therapies, particularly in oncology and inflammation.
The companys product portfolio spans multiple therapeutic categories, including gastro-intestinal, cardiovascular, anti-diabetic, dermatology, oncology, and others. With a strong research and development foundation, Dr. Reddys Laboratories is well-positioned to capitalize on emerging trends in the pharmaceutical industry. Key performance indicators (KPIs) to watch include revenue growth, gross margin expansion, and return on equity (RoE), which currently stands at 18.08%. The companys dividend yield and payout ratio are also important metrics to monitor.
From a valuation perspective, Dr. Reddys Laboratories Ltd has a market capitalization of approximately $12.17 billion USD, with a price-to-earnings (P/E) ratio of 18.37 and a forward P/E of 17.92. These metrics suggest a relatively stable valuation compared to industry peers. To further assess the companys financial health, investors can examine metrics such as debt-to-equity ratio, interest coverage ratio, and operating cash flow margin.
In terms of growth prospects, Dr. Reddys Laboratories is likely to benefit from the increasing demand for generic pharmaceuticals, particularly in emerging markets. The companys strong research and development capabilities, combined with its diversified product portfolio, position it well for long-term success. Investors can monitor the companys progress in developing new therapies, particularly in areas like oncology and inflammation, as well as its ability to expand its global footprint through strategic partnerships and acquisitions.
RDY Stock Overview
| Market Cap in USD | 12,030m |
| Sub-Industry | Pharmaceuticals |
| IPO / Inception | 2001-04-11 |
RDY Stock Ratings
| Growth Rating | 40.7% |
| Fundamental | 77.6% |
| Dividend Rating | 48.4% |
| Return 12m vs S&P 500 | -19.1% |
| Analyst Rating | 3.50 of 5 |
RDY Dividends
| Dividend Yield 12m | 0.62% |
| Yield on Cost 5y | 0.78% |
| Annual Growth 5y | 28.01% |
| Payout Consistency | 87.3% |
| Payout Ratio | 0.2% |
RDY Growth Ratios
| Growth Correlation 3m | 6.9% |
| Growth Correlation 12m | -4.3% |
| Growth Correlation 5y | 68.5% |
| CAGR 5y | 15.01% |
| CAGR/Max DD 3y (Calmar Ratio) | 0.56 |
| CAGR/Mean DD 3y (Pain Ratio) | 1.83 |
| Sharpe Ratio 12m | -0.17 |
| Alpha | -14.58 |
| Beta | 0.327 |
| Volatility | 22.55% |
| Current Volume | 892.5k |
| Average Volume 20d | 1048.6k |
| Stop Loss | 14.3 (-3.1%) |
| Signal | 0.34 |
Piotroski VR‑10 (Strict, 0-10) 6.0
| Net Income (56.80b TTM) > 0 and > 6% of Revenue (6% = 20.06b TTM) |
| FCFTA 0.03 (>2.0%) and ΔFCFTA -2.28pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 38.09% (prev 56.68%; Δ -18.59pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.10 (>3.0%) and CFO 52.56b <= Net Income 56.80b (YES >=105%, WARN >=100%) |
| Net Debt (39.64b) to EBITDA (98.08b) ratio: 0.40 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.89 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (833.0m) change vs 12m ago -0.11% (target <= -2.0% for YES) |
| Gross Margin 57.65% (prev 59.06%; Δ -1.41pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 71.51% (prev 69.47%; Δ 2.04pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 26.16 (EBITDA TTM 98.08b / Interest Expense TTM 3.06b) >= 6 (WARN >= 3) |
Altman Z'' 6.95
| (A) 0.25 = (Total Current Assets 269.90b - Total Current Liabilities 142.59b) / Total Assets 519.54b |
| (B) 0.64 = Retained Earnings (Balance) 329.97b / Total Assets 519.54b |
| (C) 0.17 = EBIT TTM 80.07b / Avg Total Assets 467.42b |
| (D) 2.02 = Book Value of Equity 334.79b / Total Liabilities 165.78b |
| Total Rating: 6.95 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 77.58
| 1. Piotroski 6.0pt = 1.0 |
| 2. FCF Yield 1.39% = 0.69 |
| 3. FCF Margin 4.32% = 1.08 |
| 4. Debt/Equity 0.14 = 2.49 |
| 5. Debt/Ebitda 0.40 = 2.38 |
| 6. ROIC - WACC (= 9.05)% = 11.31 |
| 7. RoE 17.39% = 1.45 |
| 8. Rev. Trend 96.46% = 7.23 |
| 9. EPS Trend -1.25% = -0.06 |
What is the price of RDY shares?
Over the past week, the price has changed by +2.72%, over one month by +1.03%, over three months by +2.01% and over the past year by -5.75%.
Is Dr. Reddy’s Laboratories a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of RDY is around 14.61 USD . This means that RDY is currently overvalued and has a potential downside of -0.95%.
Is RDY a buy, sell or hold?
- Strong Buy: 2
- Buy: 0
- Hold: 1
- Sell: 0
- Strong Sell: 1
What are the forecasts/targets for the RDY price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 14.9 | 1.2% |
| Analysts Target Price | 14.9 | 1.2% |
| ValueRay Target Price | 16.1 | 8.9% |
Last update: 2025-10-20 04:01
RDY Fundamental Data Overview
P/E Trailing = 18.5256
P/E Forward = 18.2815
P/S = 0.036
P/B = 2.9722
P/EG = 3.1494
Beta = 0.327
Revenue TTM = 334.26b INR
EBIT TTM = 80.07b INR
EBITDA TTM = 98.08b INR
Long Term Debt = 3.80b INR (from longTermDebt, last fiscal year)
Short Term Debt = 43.55b INR (from shortTermDebt, last quarter)
Debt = 48.64b INR (from shortLongTermDebtTotal, last quarter)
Net Debt = 39.64b INR (from netDebt column, last quarter)
Enterprise Value = 1040.61b INR (1058.66b + Debt 48.64b - CCE 66.69b)
Interest Coverage Ratio = 26.16 (Ebit TTM 80.07b / Interest Expense TTM 3.06b)
FCF Yield = 1.39% (FCF TTM 14.44b / Enterprise Value 1040.61b)
FCF Margin = 4.32% (FCF TTM 14.44b / Revenue TTM 334.26b)
Net Margin = 16.99% (Net Income TTM 56.80b / Revenue TTM 334.26b)
Gross Margin = 57.65% ((Revenue TTM 334.26b - Cost of Revenue TTM 141.55b) / Revenue TTM)
Gross Margin QoQ = 56.91% (prev 55.56%)
Tobins Q-Ratio = 2.00 (Enterprise Value 1040.61b / Total Assets 519.54b)
Interest Expense / Debt = 1.71% (Interest Expense 830.0m / Debt 48.64b)
Taxrate = 25.99% (4.95b / 19.05b)
NOPAT = 59.26b (EBIT 80.07b * (1 - 25.99%))
Current Ratio = 1.89 (Total Current Assets 269.90b / Total Current Liabilities 142.59b)
Debt / Equity = 0.14 (Debt 48.64b / totalStockholderEquity, last quarter 350.06b)
Debt / EBITDA = 0.40 (Net Debt 39.64b / EBITDA 98.08b)
Debt / FCF = 2.75 (Net Debt 39.64b / FCF TTM 14.44b)
Total Stockholder Equity = 326.63b (last 4 quarters mean from totalStockholderEquity)
RoA = 10.93% (Net Income 56.80b / Total Assets 519.54b)
RoE = 17.39% (Net Income TTM 56.80b / Total Stockholder Equity 326.63b)
RoCE = 24.23% (EBIT 80.07b / Capital Employed (Equity 326.63b + L.T.Debt 3.80b))
RoIC = 16.01% (NOPAT 59.26b / Invested Capital 370.14b)
WACC = 6.96% (E(1058.66b)/V(1107.30b) * Re(7.22%) + D(48.64b)/V(1107.30b) * Rd(1.71%) * (1-Tc(0.26)))
Discount Rate = 7.22% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 8.05%
Shares Correlation 3-Years: 33.33 | Cagr: 123.5%
[DCF Debug] Terminal Value 72.69% ; FCFE base≈17.06b ; Y1≈12.40b ; Y5≈6.96b
Fair Price DCF = 159.2 (DCF Value 132.55b / Shares Outstanding 832.5m; 5y FCF grow -32.18% → 3.0% )
EPS Correlation: -1.25 | EPS CAGR: -14.84% | SUE: -2.51 | # QB: 0
Revenue Correlation: 96.46 | Revenue CAGR: 11.69% | SUE: -0.01 | # QB: 0
Additional Sources for RDY Stock
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