RDY Stock Analysis: Dr. Reddy’s Laboratories | NYSE
Drug Manufacturers - Specialty & Generic | NYSE, USA | Market Cap: 12.699m USD | 12M Return: -2.8% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 29.6M
EPS Trend: -59.2%
Qual. Beats: 0
Rev. Trend: 91.8%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 10.5 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, founded in 1984. It trades on the NYSE under the ticker RDY as an American Depositary Receipt (ADR), a structure that enables Indian-domiciled firms to list and trade on U.S. exchanges. The company operates across North America, Europe, India, Russia, and other international markets.
Its business is organized into three segments. The Global Generics segment manufactures and markets prescription and over-the-counter finished pharmaceutical products, including generics with therapeutic equivalence to branded formulations, and also operates a biologics business. The Pharmaceutical Services and Active Ingredients (PSAI) segment produces APIs and intermediates - the principal ingredients used in finished drugs - and offers contract research services as well as custom manufacturing of APIs and steroids. A third, smaller segment focuses on developing therapies in oncology and inflammation and on differentiated formulations research and commercialization.
Dr. Reddys products span a broad range of therapeutic categories, including gastro-intestinal, cardiovascular, anti-diabetic, dermatology, oncology, respiratory, urology, nephrology, vaccines, pain management, and vitamins and minerals. As a major player in the global generics industry, the company is well-positioned to benefit from patent cliffs on originator drugs, while its in-house API manufacturing provides vertical integration that is a common competitive advantage among large Indian pharmaceutical firms.
- US generic pricing pressure weighs on Global Generics margins
- Russia revenue exposure fluctuates with ruble volatility and sanctions
- USFDA inspection outcomes at key manufacturing facilities impact compliance
| Net Income: 42.9b 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 56.5b > Net Income 42.9b |
| Net Debt (4.14b) to EBITDA (77.3b): 0.05 < 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 58.50%; Δ -5.76% > 0.5%) |
| Asset Turnover: 63.55% > 50% (prev 66.03%; Δ -2.48% > 0%) |
| Interest Coverage Ratio: 15.08 > 6 (EBIT TTM 56.7b / Interest Expense TTM 3.76b) |
| A: 0.23 (Total Current Assets 296b - Total Current Liabilities 164b) / Total Assets 568b |
| B: 0.61 (Retained Earnings 345b / Total Assets 568b) |
| C: 0.11 (EBIT TTM 56.7b / Avg Total Assets 530b) |
| D: 1.90 (Book Value of Equity 370b / Total Liabilities 195b) |
| Altman-Z'' = 6.21 = AAA |
| DSRI: 0.87 (Receivables 99.2b/110b, Revenue 337b/326b) |
| GMI: 1.11 (GM 58.50% / 52.74%) |
| AQI: 0.95 (AQ_t 0.28 / AQ_t-1 0.29) |
| SGI: 1.04 (Revenue 337b / 326b) |
| TATA: -0.02 (NI 42.9b - CFO 56.5b) / TA 568b) |
| Beneish M = -3.04 (Cap -4..+1) = AA |
As of July 03, 2026, the stock is trading at USD 14.38 with a total of 1,921,561 shares traded. Over the past week, the price has changed by -5.70%, over one month by +10.36%, over three months by +7.96% and over the past year by -2.76%.
Current recommended Stop Loss: 13.70 (which is 4.7% or 1.8 ATR below the current price).
Dr. Reddy’s Laboratories has received a consensus analysts rating of 3.50. Therefore, it is recommended to hold RDY.
- StrongBuy: 2
- Buy: 0
- Hold: 1
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 14.3 | -0.6% |
Market Cap INR = 1211b (12.7b USD * 95.4 USD.INR)
P/E Trailing = 28.2407
P/E Forward = 28.4091
P/S = 0.0378
P/B = 3.2056
P/EG = 1.8348
Revenue TTM = 337b INR
EBIT TTM = 56.7b INR
EBITDA TTM = 77.3b INR
Long Term Debt = 12.2b INR (from longTermDebt, last quarter)
Short Term Debt = 63.8b INR (from shortTermDebt, last quarter)
Debt = 90.2b INR (from shortLongTermDebtTotal, last quarter) + Leases 14.4b
Net Debt = 4.14b INR (calculated: Debt 90.2b - CCE 86.1b)
Enterprise Value = 1216b INR (1211b + Debt 90.2b - CCE 86.1b)
Interest Coverage Ratio = 15.08 (Ebit TTM 56.7b / Interest Expense TTM 3.76b)
EV/FCF = 50.11x (Enterprise Value 1216b / FCF TTM 24.3b)
FCF Yield = 2.00% (FCF TTM 24.3b / Enterprise Value 1216b)
FCF Margin = 7.20% (FCF TTM 24.3b / Revenue TTM 337b)
Net Margin = 12.72% (Net Income TTM 42.9b / Revenue TTM 337b)
Gross Margin = 52.74% ((Revenue TTM 337b - Cost of Revenue TTM 159b) / Revenue TTM)
Gross Margin QoQ = 44.82% (prev 53.63%)
Tobins Q-Ratio = 2.14 (Enterprise Value 1216b / Total Assets 568b)
Interest Expense / Debt = 4.17% (Interest Expense 3.76b / Debt 90.2b)
Taxrate = 22.51% (12.3b / 54.8b)
NOPAT = 44.0b (EBIT 56.7b * (1 - 22.51%))
Current Ratio = 1.80 (Total Current Assets 296b / Total Current Liabilities 164b)
Debt / Equity = 0.24 (Debt 90.2b / totalStockholderEquity, last quarter 370b)
Debt / EBITDA = 0.05 (Net Debt 4.14b / EBITDA 77.3b)
Debt / FCF = 0.17 (Net Debt 4.14b / FCF TTM 24.3b)
Total Stockholder Equity = 363b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.08% (Net Income 42.9b / Total Assets 568b)
RoE = 11.83% (Net Income TTM 42.9b / Total Stockholder Equity 363b)
RoCE = 15.14% (EBIT 56.7b / Capital Employed (Equity 363b + L.T.Debt 12.2b))
RoIC = 9.76% (NOPAT 44.0b / Invested Capital 451b)
WACC = 5.85% (E(1211b)/V(1302b) * Re(6.05%) + D(90.2b)/V(1302b) * Rd(4.17%) * (1-Tc(0.23)))
Discount Rate = 6.05% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 25.01 | Cagr: 104.6%
[DCF] Terminal Value 77.97% ; FCFF base≈19.4b ; Y1≈22.2b ; Y5≈32.7b
[DCF] Fair Price = 585.5 (EV 492b - Net Debt 4.14b = Equity 488b / Shares 832.7m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -59.19 | EPS CAGR: -23.09% | SUE: -0.02 | # QB: 0
Revenue Correlation: 91.77 | Revenue CAGR: 47.91% | SUE: 0.11 | # QB: 0
EPS current Quarter (2026-09-30): EPS=0.00 | Chg30d=N/A | Revisions=N/A | Analysts=0
EPS current Year (2027-03-31): EPS=51.04 | Chg30d=N/A | Revisions=-20% | GrowthEPS=-7.8% | GrowthRev=+6.4%
EPS next Year (2028-03-31): EPS=63.32 | Chg30d=N/A | Revisions=-20% | GrowthEPS=+24.1% | GrowthRev=+10.3%