Overview Dividends

(RDY) Dr. Reddy’s Laboratories - Ratings and Ratios

Exchange: NYSE • Country: India • Currency: USD • Type: Common Stock • ISIN: US2561352038

Generics, APIs, Biologics, Oncotherapies, Formulations

RDY EPS (Earnings per Share)

EPS Growth (3Y CAGR): -42.65%
EPS Trend (3Y Correlation): 16.1%

RDY Revenue

Revenue Growth (3Y CAGR): 10.03%
Revenue Trend (3Y Correlation): 96.6%

Description: RDY Dr. Reddy’s Laboratories October 31, 2025

Dr. Reddy’s Laboratories Ltd. (NYSE: RDY) is an integrated pharmaceutical firm headquartered in Hyderabad, India, operating across North America, Europe, India, Russia and other markets. It segments its business into Global Generics (prescription and OTC drugs plus biologics), PSAI (active pharmaceutical ingredients, intermediates and contract research) and Others (oncology, inflammation and differentiated formulations). The product portfolio spans gastro-intestinal, cardiovascular, anti-diabetic, dermatology, oncology, respiratory, urology, nephrology, vaccines and pain management.

Key recent metrics: FY 2023 revenue reached $3.4 billion, up ~7 % YoY, driven by strong generic launches in the U.S. and expanding API sales in Europe; R&D intensity was ~13 % of sales, reflecting a pipeline of 12 late-stage oncology candidates. A material sector driver is the U.S. “generic drug pricing reform” debate, which can compress margins but also creates opportunities for cost-efficient manufacturers like Dr. Reddy’s that have a diversified API business to offset pricing pressure.

For a deeper, data-rich assessment of RDY’s valuation dynamics, you may find it worthwhile to explore the analyst tools on ValueRay, where detailed financial models and scenario analyses are publicly available.

RDY Stock Overview

Market Cap in USD	11,250m
Sub-Industry	Pharmaceuticals
IPO / Inception	2001-04-11

RDY Stock Ratings

Growth Rating	26.0%
Fundamental	81.9%
Dividend Rating	48.6%
Return 12m vs S&P 500	-22.3%
Analyst Rating	3.50 of 5

RDY Dividends

Dividend Yield 12m	0.68%
Yield on Cost 5y	0.82%
Annual Growth 5y	28.01%
Payout Consistency	87.3%
Payout Ratio	0.2%

RDY Growth Ratios

Growth Correlation 3m	-15%
Growth Correlation 12m	6.2%
Growth Correlation 5y	69.6%
CAGR 5y	8.26%
CAGR/Max DD 3y (Calmar Ratio)	0.31
CAGR/Mean DD 3y (Pain Ratio)	0.97
Sharpe Ratio 12m	-0.17
Alpha	-17.47
Beta	0.327
Volatility	25.42%
Current Volume	1093.3k
Average Volume 20d	1088.5k
Stop Loss	13 (-3.5%)
Signal	-0.08

Piotroski VR‑10 (Strict, 0-10) 7.5

Net Income (58.62b TTM) > 0 and > 6% of Revenue (6% = 20.53b TTM)

FCFTA 0.06 (>2.0%) and ΔFCFTA 3.94pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 37.58% (prev 39.63%; Δ -2.04pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.14 (>3.0%) and CFO 73.45b > Net Income 58.62b (YES >=105%, WARN >=100%)

Net Debt (48.66b) to EBITDA (100.74b) ratio: 0.48 <= 3.0 (WARN <= 3.5)

Current Ratio 1.85 (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 -0.13% (target <= -2.0% for YES)

Gross Margin 56.43% (prev 59.29%; Δ -2.86pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 67.89% (prev 64.36%; Δ 3.53pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 23.94 (EBITDA TTM 100.74b / Interest Expense TTM 3.21b) >= 6 (WARN >= 3)

Altman Z'' 6.64

(A) 0.24 = (Total Current Assets 279.52b - Total Current Liabilities 150.93b) / Total Assets 542.00b

(B) 0.62 = Retained Earnings (Balance) 337.68b / Total Assets 542.00b

(D) 1.93 = Book Value of Equity 347.31b / Total Liabilities 179.92b

Total Rating: 6.64 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 81.86

1. Piotroski 7.50pt = 2.50

2. FCF Yield 3.16% = 1.58

3. FCF Margin 9.10% = 2.28

4. Debt/Equity 0.16 = 2.49

5. Debt/Ebitda 0.48 = 2.32

6. ROIC - WACC (= 8.96)% = 11.21

7. RoE 17.25% = 1.44

8. Rev. Trend 96.59% = 7.24

9. EPS Trend 16.15% = 0.81

What is the price of RDY shares?

As of November 07, 2025, the stock is trading at USD 13.47 with a total of 1,093,300 shares traded.
Over the past week, the price has changed by +0.15%, over one month by -4.40%, over three months by +1.05% and over the past year by -10.83%.

Is Dr. Reddy’s Laboratories a good stock to buy?

Yes, based on ValueRay´s Fundamental Analyses, Dr. Reddy’s Laboratories (NYSE:RDY) is currently (November 2025) a good stock to buy. It has a ValueRay Fundamental Rating of 81.86 and therefor a positive outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of RDY is around 12.91 USD . This means that RDY is currently overvalued and has a potential downside of -4.16%.

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.

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	14.8	10.1%
Analysts Target Price	14.8	10.1%
ValueRay Target Price	14.2	5.3%

RDY Fundamental Data Overview November 04, 2025

Market Cap INR = 998.52b (11.25b USD * 88.757 USD.INR)
P/E Trailing = 16.8228
P/E Forward = 18.2815
P/S = 0.0329
P/B = 2.9722
P/EG = 3.1494
Beta = 0.327
Revenue TTM = 342.15b INR
EBIT TTM = 76.88b INR
EBITDA TTM = 100.74b INR
Long Term Debt = 3.80b INR (from longTermDebt, last fiscal year)
Short Term Debt = 41.16b INR (from shortTermDebt, last quarter)
Debt = 58.57b INR (from shortLongTermDebtTotal, last quarter)
Net Debt = 48.66b INR (from netDebt column, last quarter)
Enterprise Value = 987.27b INR (998.52b + Debt 58.57b - CCE 69.81b)
Interest Coverage Ratio = 23.94 (Ebit TTM 76.88b / Interest Expense TTM 3.21b)
FCF Yield = 3.16% (FCF TTM 31.15b / Enterprise Value 987.27b)
FCF Margin = 9.10% (FCF TTM 31.15b / Revenue TTM 342.15b)
Net Margin = 17.13% (Net Income TTM 58.62b / Revenue TTM 342.15b)
Gross Margin = 56.43% ((Revenue TTM 342.15b - Cost of Revenue TTM 149.07b) / Revenue TTM)
Gross Margin QoQ = 54.67% (prev 56.91%)
Tobins Q-Ratio = 1.82 (Enterprise Value 987.27b / Total Assets 542.00b)
Interest Expense / Debt = 1.55% (Interest Expense 907.0m / Debt 58.57b)
Taxrate = 22.25% (4.08b / 18.35b)
NOPAT = 59.78b (EBIT 76.88b * (1 - 22.25%))
Current Ratio = 1.85 (Total Current Assets 279.52b / Total Current Liabilities 150.93b)
Debt / Equity = 0.16 (Debt 58.57b / totalStockholderEquity, last quarter 358.49b)
Debt / EBITDA = 0.48 (Net Debt 48.66b / EBITDA 100.74b)
Debt / FCF = 1.56 (Net Debt 48.66b / FCF TTM 31.15b)
Total Stockholder Equity = 339.91b (last 4 quarters mean from totalStockholderEquity)
RoA = 10.82% (Net Income 58.62b / Total Assets 542.00b)
RoE = 17.25% (Net Income TTM 58.62b / Total Stockholder Equity 339.91b)
RoCE = 22.37% (EBIT 76.88b / Capital Employed (Equity 339.91b + L.T.Debt 3.80b))
RoIC = 15.85% (NOPAT 59.78b / Invested Capital 377.13b)
WACC = 6.89% (E(998.52b)/V(1057.08b) * Re(7.22%) + D(58.57b)/V(1057.08b) * Rd(1.55%) * (1-Tc(0.22)))
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 75.99% ; FCFE base≈22.05b ; Y1≈19.09b ; Y5≈15.16b
Fair Price DCF = 332.0 (DCF Value 276.38b / Shares Outstanding 832.5m; 5y FCF grow -16.42% → 3.0% )
EPS Correlation: 16.15 | EPS CAGR: -42.65% | SUE: -2.34 | # QB: 0
Revenue Correlation: 96.59 | Revenue CAGR: 10.03% | SUE: 0.02 | # QB: 0

Additional Sources for RDY Stock

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