(RDY) Dr. Reddy’s Laboratories - Overview
Stock: Generics, APIs, Biologics, Oncology, Formulations
| Risk 5d forecast | |
|---|---|
| Volatility | 23.5% |
| Relative Tail Risk | -3.39% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.09 |
| Alpha | -5.67 |
| Character TTM | |
|---|---|
| Beta | 0.439 |
| Beta Downside | 0.388 |
| Drawdowns 3y | |
|---|---|
| Max DD | 26.61% |
| CAGR/Max DD | 0.44 |
EPS (Earnings per Share)
Revenue
Description: RDY Dr. Reddy’s Laboratories January 03, 2026
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. The business is organized into three segments: Global Generics (prescription and OTC products plus emerging biologics), PSAI (active pharmaceutical ingredients, intermediates, and contract research services) and Others (oncology, inflammation therapies, and differentiated formulation R&D). Its portfolio spans therapeutic areas such as gastro-intestinal, cardiovascular, anti-diabetic, dermatology, oncology, respiratory, urology, nephrology, vaccines and pain management.
Key recent metrics: FY 2023 revenue reached $3.0 bn, with a 12 % YoY growth driven largely by U.S. generic volume expansion; net profit margin improved to 9.8 % as cost-optimization in the PSAI unit offset higher raw-material prices. R&D intensity rose to 7.5 % of sales, reflecting a strategic push into biosimilars and oncology pipelines, while the company’s active-ingredient export share hit 35 % of total sales, capitalizing on the global shift toward cost-effective drug sourcing.
Sector drivers that materially affect RDY include the U.S. FDA’s accelerated approval pathways for generics and biosimilars, the Indian government’s “Pharma Vision 2025” incentives for export-oriented manufacturers, and the broader macro trend of aging populations increasing demand for chronic-disease therapies worldwide.
For a deeper, data-rich analysis of how these dynamics translate into valuation outlook, you may find the ValueRay research hub a useful next stop.
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 5459 % > 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?
Over the past week, the price has changed by +1.50%, over one month by +5.42%, over three months by +2.90% and over the past year by +3.54%.
Is RDY a buy, sell or hold?
- StrongBuy: 2
- Buy: 0
- Hold: 1
- Sell: 0
- StrongSell: 1
What are the forecasts/targets for the RDY price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 14.5 | 2% |
| Analysts Target Price | 14.5 | 2% |
| ValueRay Target Price | 15 | 5.6% |
RDY Fundamental Data Overview February 09, 2026
P/E Trailing = 18.7733
P/E Forward = 24.57
P/S = 0.0342
P/B = 2.8472
P/EG = 3.7233
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 = 1057.77b INR (1072.63b + Debt 67.73b - CCE 82.59b)
Interest Coverage Ratio = 22.23 (Ebit TTM 74.35b / Interest Expense TTM 3.34b)
EV/FCF = 43.60x (Enterprise Value 1057.77b / FCF TTM 24.26b)
FCF Yield = 2.29% (FCF TTM 24.26b / Enterprise Value 1057.77b)
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 = 1.88 (Enterprise Value 1057.77b / 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 = 7.15% (E(1072.63b)/V(1140.36b) * Re(7.53%) + D(67.73b)/V(1140.36b) * Rd(1.41%) * (1-Tc(0.23)))
Discount Rate = 7.53% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.95%
Shares Correlation 3-Years: 33.33 | Cagr: 123.5%
[DCF Debug] Terminal Value 80.94% ; FCFF base≈15.10b ; Y1≈14.67b ; Y5≈14.66b
Fair Price DCF = 314.3 (EV 310.71b - Net Debt 49.08b = Equity 261.64b / Shares 832.6m; r=7.15% [WACC]; 5y FCF grow -3.95% → 2.90% )
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 | Chg30d=-4.800 | Revisions Net=-1 | Growth EPS=-8.0% | Growth Revenue=+3.6%