Overview Dividends

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

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

Generics, APIs, Biologics, Oncology, Formulations

Pharmaceuticals
Market Cap in USD: 11,593m

IPO / Inception: 2001-04-11
Return 12m vs S&P 500: -23.1%

EPS (Earnings per Share)

EPS CAGR: -2.12%
EPS Trend: 27.7%

Last SUE: -0.02
Qual. Beats: 0

Revenue

Rev. CAGR: 14.38%
Rev. Trend: 49.0%

Last SUE: 0.02
Qual. Beats: 0

Dividends

Dividend Yield	0.66%
Yield on Cost 5y	0.74%
Yield CAGR 5y	-52.31%
Payout Consistency	84.4%
Payout Ratio	0.2%

Risk via 5d forecast
Volatility	22.5%
Value at Risk 5%th	34.8%
Relative Tail Risk	-5.76%

Reward TTM
Sharpe Ratio	-0.47
Alpha	-21.98
CAGR/Max DD	0.46

Character TTM
Hurst Exponent	0.402
Beta	0.437
Beta Downside	0.454

Drawdowns 3y
Max DD	26.61%
Mean DD	8.73%
Median DD	7.86%

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) 7.0

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

FCFTA 0.03 (>2.0%) and ΔFCFTA 2.71pp (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 0.11 (>3.0%) and CFO 58.82b > Net Income 58.62b (YES >=105%, WARN >=100%)

Net Debt (48.63b) to EBITDA (98.49b) ratio: 0.49 <= 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 24.73 (EBITDA TTM 98.49b / 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) 1.90 = Book Value of Equity 342.50b / 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) 76.49

1. Piotroski 7.0pt

2. FCF Yield 1.69%

3. FCF Margin 5.40%

4. Debt/Equity 0.16

5. Debt/Ebitda 0.49

6. ROIC - WACC (= 8.80)%

7. RoE 17.25%

8. Rev. Trend 48.96%

9. EPS Trend 27.66%

What is the price of RDY shares?

As of January 08, 2026, the stock is trading at USD 13.86 with a total of 1,281,794 shares traded.
Over the past week, the price has changed by -1.42%, over one month by -0.22%, over three months by -1.63% and over the past year by -9.55%.

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	14.6	5.4%
Analysts Target Price	14.6	5.4%
ValueRay Target Price	14.8	6.9%

RDY Fundamental Data Overview January 04, 2026

Market Cap INR = 1043.51b (11.59b USD * 90.014 USD.INR)
P/E Trailing = 17.7692
P/E Forward = 22.2717
P/S = 0.0339
P/B = 2.927
P/EG = 3.7729
Beta = 0.345
Revenue TTM = 342.15b INR
EBIT TTM = 79.40b INR
EBITDA TTM = 98.49b INR
Long Term Debt = 11.64b INR (from longTermDebtTotal, last quarter)
Short Term Debt = 46.90b INR (from shortTermDebt, last quarter)
Debt = 58.54b INR (from shortLongTermDebtTotal, last quarter)
Net Debt = 48.63b INR (from netDebt column, last quarter)
Enterprise Value = 1092.14b INR (1043.51b + Debt 58.54b - CCE 9.91b)
Interest Coverage Ratio = 24.73 (Ebit TTM 79.40b / Interest Expense TTM 3.21b)
FCF Yield = 1.69% (FCF TTM 18.47b / Enterprise Value 1092.14b)
FCF Margin = 5.40% (FCF TTM 18.47b / 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 = 2.01 (Enterprise Value 1092.14b / Total Assets 542.00b)
Interest Expense / Debt = 1.55% (Interest Expense 907.0m / Debt 58.54b)
Taxrate = 22.25% (4.08b / 18.35b)
NOPAT = 61.74b (EBIT 79.40b * (1 - 22.25%))
Current Ratio = 1.85 (Total Current Assets 279.52b / Total Current Liabilities 150.93b)
Debt / Equity = 0.16 (Debt 58.54b / totalStockholderEquity, last quarter 358.49b)
Debt / EBITDA = 0.49 (Net Debt 48.63b / EBITDA 98.49b)
Debt / FCF = 2.63 (Net Debt 48.63b / FCF TTM 18.47b)
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 = 22.59% (EBIT 79.40b / Capital Employed (Equity 339.91b + L.T.Debt 11.64b))
RoIC = 16.09% (NOPAT 61.74b / Invested Capital 383.71b)
WACC = 7.29% (E(1043.51b)/V(1102.05b) * Re(7.63%) + D(58.54b)/V(1102.05b) * Rd(1.55%) * (1-Tc(0.22)))
Discount Rate = 7.63% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 8.05%
Shares Correlation 3-Years: 81.65 | Cagr: 0.12%
[DCF Debug] Terminal Value 77.86% ; FCFE base≈12.38b ; Y1≈12.03b ; Y5≈12.05b
Fair Price DCF = 257.5 (DCF Value 214.38b / Shares Outstanding 832.5m; 5y FCF grow -3.95% → 3.0% )
EPS Correlation: 27.66 | EPS CAGR: -2.12% | SUE: -0.02 | # QB: 0
Revenue Correlation: 48.96 | Revenue CAGR: 14.38% | SUE: 0.02 | # QB: 0
EPS current Year (2026-03-31): EPS=61.53 | Chg30d=-6.900 | Revisions Net=-1 | Growth EPS=-11.2% | Growth Revenue=+5.1%
EPS next Year (2027-03-31): EPS=56.62 | Chg30d=+1.840 | Revisions Net=-1 | Growth EPS=-8.0% | Growth Revenue=+2.2%

Additional Sources for RDY Stock

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