(RDY) Dr. Reddy’s Laboratories - Overview
Sector: HealthcareIndustry: Drug Manufacturers - Specialty & Generic | Exchange NYSE (USA) | Currency USD | Market Cap: 11.548m | Total Return 2.8% in 12m
Stock
Generics, Ingredients, Research, Biologics
Total Rating 58
Risk 87
Buy Signal -0.87
Market Cap:
11,548m
Avg Trading Vol: 28.6M USD
Avg Trading Vol: 28.6M USD
ATR:
2.10%
Peers RS (IBD): 36.0
Peers RS (IBD): 36.0
Risk 5d forecast
Volatility23.8%
Rel. Tail Risk-3.07%
Reward TTM
Sharpe Ratio0.03
Alpha-3.69
Character TTM
Beta0.176
Beta Downside-0.163
Drawdowns 3y
Max DD26.61%
CAGR/Max DD0.32
EPS (Earnings per Share)
EPS CAGR: 25.22%
EPS Trend: 26.5%
EPS Trend: 26.5%
Last SUE: 0.00
Qual. Beats: 0
Qual. Beats: 0
Revenue
Rev. CAGR: 259.08%
Rev. Trend: 60.4%
Rev. Trend: 60.4%
Last SUE: 0.03
Qual. Beats: 0
Qual. Beats: 0
Description: RDY Dr. Reddy’s Laboratories
March 04, 2026
Dr. Reddys Laboratories Ltd. is an integrated pharmaceutical company operating globally, including North America, Europe, and India. The companys business model is diversified across three main segments.
The Global Generics segment focuses on manufacturing and marketing prescription and over-the-counter (OTC) finished pharmaceutical products, including branded generics and biosimilars. This segment is characteristic of the pharmaceutical industrys focus on developing and distributing off-patent drugs, often at lower costs than their branded counterparts.
The Pharmaceutical Services and Active Ingredients (PSAI) segment produces active pharmaceutical ingredients (APIs) and intermediates, which are critical components for finished drug products. This segment also offers contract research services, a common practice in the pharmaceutical sector where companies outsource R&D to specialized firms.
The Others segment is dedicated to developing therapies in oncology and inflammation, alongside research and development for differentiated formulations. The companys product portfolio spans numerous therapeutic areas, such as cardiovascular, anti-diabetic, and oncology.
For more detailed financial analysis, consider exploring ValueRay.
- Generic drug approvals and launches drive revenue growth
- Active pharmaceutical ingredient sales impact profitability
- Regulatory scrutiny in key markets poses compliance risks
- Emerging market growth influences global sales performance
Piotroski VR‑10 (Strict, 0-10)
8.0
| Net Income: 56.59b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA 4.03 > 1.0 |
| NWC/Revenue: 40.26% < 20% (prev 38.89%; Δ 1.37% < -1%) |
| CFO/TA 0.11 > 3% & CFO 63.11b > Net Income 56.59b |
| Net Debt (49.08b) to EBITDA (93.77b): 0.52 < 3 |
| Current Ratio: 1.88 > 1.5 & < 3 |
| Outstanding Shares: last quarter (833.2m) vs 12m ago -0.13% < -2% |
| Gross Margin: 55.18% > 18% (prev 0.59%; Δ 5.46k% > 0.5%) |
| Asset Turnover: 66.25% > 50% (prev 64.71%; Δ 1.54% > 0%) |
| Interest Coverage Ratio: 22.23 > 6 (EBITDA TTM 93.77b / Interest Expense TTM 3.34b) |
Altman Z''
6.60
| A: 0.25 (Total Current Assets 297.55b - Total Current Liabilities 158.31b) / Total Assets 562.90b |
| B: 0.62 (Retained Earnings 349.78b / Total Assets 562.90b) |
| C: 0.14 (EBIT TTM 74.35b / Avg Total Assets 521.98b) |
| D: 1.89 (Book Value of Equity 354.60b / Total Liabilities 187.14b) |
| Altman-Z'' Score: 6.60 = AAA |
Beneish M
-2.92
| DSRI: 1.00 (Receivables 124.27b/111.49b, Revenue 345.83b/311.31b) |
| GMI: 1.07 (GM 55.18% / 59.31%) |
| AQI: 0.95 (AQ_t 0.27 / AQ_t-1 0.28) |
| SGI: 1.11 (Revenue 345.83b / 311.31b) |
| TATA: -0.01 (NI 56.59b - CFO 63.11b) / TA 562.90b) |
| Beneish M-Score: -2.92 (Cap -4..+1) = A |
What is the price of RDY shares?
As of March 30, 2026, the stock is trading at USD 13.48 with a total of 1,288,882 shares traded.
Over the past week, the price has changed by -1.53%, over one month by -6.26%, over three months by -4.46% and over the past year by +2.84%.
Over the past week, the price has changed by -1.53%, over one month by -6.26%, over three months by -4.46% and over the past year by +2.84%.
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?
| ISSUER | TARGET | UP/DOWN |
|---|---|---|
| Wallstreet Target Price | 14 | 3.5% |
| Analysts Target Price | 14 | 3.5% |
RDY Fundamental Data Overview
March 27, 2026
Market Cap INR = 1093.22b (11.55b USD * 94.667 USD.INR)P/E Trailing = 19.0
P/E Forward = 24.7525
P/S = 0.0334
P/B = 2.8692
P/EG = 3.752
Revenue TTM = 345.83b INR
EBIT TTM = 74.35b INR
EBITDA TTM = 93.77b INR
Long Term Debt = 3.80b INR (from longTermDebt, last fiscal year)
Short Term Debt = 56.12b INR (from shortTermDebt, last quarter)
Debt = 67.73b INR (from shortLongTermDebtTotal, last quarter)
Net Debt = 49.08b INR (from netDebt column, last quarter)
Enterprise Value = 1078.36b INR (1093.22b + Debt 67.73b - CCE 82.59b)
Interest Coverage Ratio = 22.23 (Ebit TTM 74.35b / Interest Expense TTM 3.34b)
EV/FCF = 44.45x (Enterprise Value 1078.36b / FCF TTM 24.26b)
FCF Yield = 2.25% (FCF TTM 24.26b / Enterprise Value 1078.36b)
FCF Margin = 7.01% (FCF TTM 24.26b / Revenue TTM 345.83b)
Net Margin = 16.36% (Net Income TTM 56.59b / Revenue TTM 345.83b)
Gross Margin = 55.18% ((Revenue TTM 345.83b - Cost of Revenue TTM 155.00b) / Revenue TTM)
Gross Margin QoQ = 53.63% (prev 54.67%)
Tobins Q-Ratio = 1.92 (Enterprise Value 1078.36b / Total Assets 562.90b)
Interest Expense / Debt = 1.41% (Interest Expense 951.8m / Debt 67.73b)
Taxrate = 22.90% (3.53b / 15.43b)
NOPAT = 57.33b (EBIT 74.35b * (1 - 22.90%))
Current Ratio = 1.88 (Total Current Assets 297.55b / Total Current Liabilities 158.31b)
Debt / Equity = 0.18 (Debt 67.73b / totalStockholderEquity, last quarter 372.37b)
Debt / EBITDA = 0.52 (Net Debt 49.08b / EBITDA 93.77b)
Debt / FCF = 2.02 (Net Debt 49.08b / FCF TTM 24.26b)
Total Stockholder Equity = 353.58b (last 4 quarters mean from totalStockholderEquity)
RoA = 10.84% (Net Income 56.59b / Total Assets 562.90b)
RoE = 16.00% (Net Income TTM 56.59b / Total Stockholder Equity 353.58b)
RoCE = 20.81% (EBIT 74.35b / Capital Employed (Equity 353.58b + L.T.Debt 3.80b))
RoIC = 14.36% (NOPAT 57.33b / Invested Capital 399.34b)
WACC = 6.28% (E(1093.22b)/V(1160.95b) * Re(6.60%) + D(67.73b)/V(1160.95b) * Rd(1.41%) * (1-Tc(0.23)))
Discount Rate = 6.60% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.92%
Shares Correlation 3-Years: 33.33 | Cagr: 123.5%
[DCF] Terminal Value 84.88% ; FCFF base≈15.10b ; Y1≈14.67b ; Y5≈14.70b
[DCF] Fair Price = 422.9 (EV 401.21b - Net Debt 49.08b = Equity 352.14b / Shares 832.6m; r=6.28% [WACC]; 5y FCF grow -3.95% → 3.0% )
EPS Correlation: 26.47 | EPS CAGR: 25.22% | SUE: 0.00 | # QB: 0
Revenue Correlation: 60.37 | Revenue CAGR: 259.1% | SUE: 0.03 | # QB: 0
EPS next Year (2027-03-31): EPS=51.82 | Chg7d=-4.800 | Chg30d=-4.800 | Revisions Net=-1 | Growth EPS=-8.0% | Growth Revenue=+3.4%