RDY Stock Analysis: Dr. Reddy’s Laboratories | NYSE
Drug Manufacturers - Specialty & Generic | NYSE, USA | Market Cap: 11.805m USD | 12M Return: 12% | US2561352038 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 38.4M
EPS Trend: -74.4%
Qual. Beats: 0
Rev. Trend: 79.3%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Dr. Reddys Laboratories Limited is an integrated pharmaceutical company headquartered in Hyderabad, India, with operations spanning North America, Europe, India, Russia, and other international markets. The company was incorporated in 1984 and trades on the NYSE under the ticker RDY, having listed in 2001. It operates through three main segments: Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Others.
The Global Generics segment is the companys primary business, manufacturing and marketing both prescription and over-the-counter finished pharmaceutical products, including branded generics, therapeutically equivalent generic formulations, and biologics. The PSAI segment supplies active pharmaceutical ingredients (APIs) and intermediates-the core chemical components used in finished drugs-and also offers contract research services along with custom API and steroid manufacturing. The Others segment focuses on developing differentiated formulations and therapies in oncology and inflammation, reflecting investment in higher-margin specialty areas. As an API-to-generics integrated player, Dr. Reddys benefits from vertical control over both active ingredients and finished dosages, a structure common among large Indian pharmaceutical firms competing in regulated markets.
The companys product portfolio addresses a wide range of therapeutic categories, including gastrointestinal, cardiovascular, anti-diabetic, dermatology, oncology, respiratory, stomatology, urology, nephrology, vaccines, vitamins and minerals, and pain management. This broad therapeutic coverage, combined with its geographic diversification across regulated and emerging markets, positions Dr. Reddys within the GICS Health Care sector, specifically the Pharmaceuticals sub-industry, where it is classified as a large-cap stock.
- USFDA approvals boost North America generic launches
- Russia revenue exposed to ruble depreciation and payment delays
- Biosimilars and complex generics pipeline expands high-margin mix
| Net Income: 28.0b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.02 > 0.02 and ΔFCF/TA -1.33 > 1.0 |
| NWC/Revenue: 43.37% < 20% (prev 37.58%; Δ 5.78% < -1%) |
| CFO/TA 0.05 > 3% & CFO 30.1b > Net Income 28.0b |
| Net Debt (10.3b) to EBITDA (54.0b): 0.19 < 3 |
| Current Ratio: 1.93 > 1.5 & < 3 |
| Outstanding Shares: last quarter (833.3m) vs 12m ago 0.04% < -2% |
| Gross Margin: 49.47% > 18% (prev 56.43%; Δ -6.96% > 0.5%) |
| Asset Turnover: 59.23% > 50% (prev 63.13%; Δ -3.90% > 0%) |
| Interest Coverage Ratio: 7.16 > 6 (EBIT TTM 32.5b / Interest Expense TTM 4.53b) |
| A: 0.25 (Total Current Assets 299b - Total Current Liabilities 155b) / Total Assets 577b |
| B: 0.62 (Retained Earnings 361b / Total Assets 577b) |
| C: 0.06 (EBIT TTM 32.5b / Avg Total Assets 560b) |
| D: 2.09 (Book Value of Equity 388b / Total Liabilities 186b) |
| Altman-Z'' = 6.25 = AAA |
| DSRI: 0.87 (Receivables 102b/121b, Revenue 331b/342b) |
| GMI: 1.14 (GM 56.43% / 49.47%) |
| AQI: 1.01 (AQ_t 0.28 / AQ_t-1 0.28) |
| SGI: 0.97 (Revenue 331b / 342b) |
| TATA: -0.00 (NI 28.0b - CFO 30.1b) / TA 577b) |
| Beneish M = -3.02 (Cap -4..+1) = AA |
As of November 07, 2026, the stock is trading at USD 14.91 with a total of 2,639,549 shares traded. Over the past week, the price has changed by +5.22%, over one month by +19.38%, over three months by +23.12% and over the past year by +11.99%.
Current recommended Stop Loss: 14.50 (which is 2.7% or 1.4 ATR below the current price).
Dr. Reddy’s Laboratories has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy RDY.
- StrongBuy: 2
- Buy: 1
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 14.3 | -4% |
Market Cap INR = 1108b (11.8b USD * 93.9 USD.INR)
P/E Trailing = 39.3611
P/E Forward = 30.6748
P/S = 0.0358
P/B = 2.8971
P/EG = 1.9561
Revenue TTM = 331b INR
EBIT TTM = 32.5b INR
EBITDA TTM = 54.0b INR
Long Term Debt = 11.7b INR (from longTermDebt, last quarter)
Short Term Debt = 60.9b INR (from shortTermDebt, last quarter)
Debt = 86.9b INR (from shortLongTermDebtTotal, last quarter) + Leases 14.3b
Net Debt = 10.3b INR (calculated: Debt 86.9b - CCE 76.6b)
Enterprise Value = 1119b INR (1108b + Debt 86.9b - CCE 76.6b)
Interest Coverage Ratio = 7.16 (Ebit TTM 32.5b / Interest Expense TTM 4.53b)
EV/FCF = 93.12x (Enterprise Value 1119b / FCF TTM 12.0b)
FCF Yield = 1.07% (FCF TTM 12.0b / Enterprise Value 1119b)
FCF Margin = 3.63% (FCF TTM 12.0b / Revenue TTM 331b)
Net Margin = 8.46% (Net Income TTM 28.0b / Revenue TTM 331b)
Gross Margin = 49.47% ((Revenue TTM 331b - Cost of Revenue TTM 167b) / Revenue TTM)
Gross Margin QoQ = 52.13% (prev 46.52%)
Tobins Q-Ratio = 1.94 (Enterprise Value 1119b / Total Assets 577b)
Interest Expense / Debt = 5.22% (Interest Expense 4.53b / Debt 86.9b)
Taxrate = 21.66% (7.64b / 35.3b)
NOPAT = 25.4b (EBIT 32.5b * (1 - 21.66%))
Current Ratio = 1.93 (Total Current Assets 299b / Total Current Liabilities 155b)
Debt / Equity = 0.22 (Debt 86.9b / totalStockholderEquity, last quarter 388b)
Debt / EBITDA = 0.19 (Net Debt 10.3b / EBITDA 54.0b)
Debt / FCF = 0.86 (Net Debt 10.3b / FCF TTM 12.0b)
Total Stockholder Equity = 378b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.01% (Net Income 28.0b / Total Assets 577b)
RoE = 7.41% (Net Income TTM 28.0b / Total Stockholder Equity 378b)
RoCE = 8.32% (EBIT 32.5b / Capital Employed (Equity 378b + L.T.Debt 11.7b))
RoIC = 5.45% (NOPAT 25.4b / Invested Capital 466b)
WACC = 5.71% (E(1108b)/V(1195b) * Re(5.84%) + D(86.9b)/V(1195b) * Rd(5.22%) * (1-Tc(0.22)))
Discount Rate = 5.84% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -42.11 | Cagr: -0.03%
[DCF] Terminal Value 73.10% ; FCFF base≈14.6b ; Y1≈12.8b ; Y5≈10.3b
[DCF] Fair Price = 186.9 (EV 166b - Net Debt 10.3b = Equity 156b / Shares 833.1m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: -74.39 | EPS CAGR: -79.81% | SUE: -0.00 | # QB: 0
Revenue Correlation: 79.31 | Revenue CAGR: 27.69% | SUE: 0.02 | # QB: 0
EPS current Quarter (2026-12-31): EPS=0.00 | Chg30d=N/A | Revisions=N/A | Analysts=0
EPS current Year (2027-03-31): EPS=46.22 | Chg30d=+5.39% | Revisions=-25% | GrowthEPS=-16.6% | GrowthRev=+4.6%
EPS next Year (2028-03-31): EPS=62.49 | Chg30d=+0.66% | Revisions=-25% | GrowthEPS=+35.2% | GrowthRev=+11.9%
[Analyst] Revisions Ratio: -40% (up=0, down=2)