RDY Stock Analysis: Dr. Reddy’s Laboratories | NYSE
Drug Manufacturers - Specialty & Generic | NYSE, USA | Market Cap: 10.204m USD | 12M Return: -11% | US2561352038 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 39.4M
EPS Trend: -61.9%
Qual. Beats: 0
Rev. Trend: 86.6%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 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, with operations spanning North America, Europe, India, Russia, and other international markets. The company was incorporated in 1984 and trades on the NYSE under the ticker RDY, having listed in 2001. It operates through three main segments: Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Others.
The Global Generics segment is the companys primary business, manufacturing and marketing both prescription and over-the-counter finished pharmaceutical products, including branded generics, therapeutically equivalent generic formulations, and biologics. The PSAI segment supplies active pharmaceutical ingredients (APIs) and intermediates-the core chemical components used in finished drugs-and also offers contract research services along with custom API and steroid manufacturing. The Others segment focuses on developing differentiated formulations and therapies in oncology and inflammation, reflecting investment in higher-margin specialty areas. As an API-to-generics integrated player, Dr. Reddys benefits from vertical control over both active ingredients and finished dosages, a structure common among large Indian pharmaceutical firms competing in regulated markets.
The companys product portfolio addresses a wide range of therapeutic categories, including gastrointestinal, cardiovascular, anti-diabetic, dermatology, oncology, respiratory, stomatology, urology, nephrology, vaccines, vitamins and minerals, and pain management. This broad therapeutic coverage, combined with its geographic diversification across regulated and emerging markets, positions Dr. Reddys within the GICS Health Care sector, specifically the Pharmaceuticals sub-industry, where it is classified as a large-cap stock.
- USFDA approvals boost North America generic launches
- Russia revenue exposed to ruble depreciation and payment delays
- Biosimilars and complex generics pipeline expands high-margin mix
| Net Income: 33.2b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA -0.15 > 1.0 |
| NWC/Revenue: 42.66% < 20% (prev 38.09%; Δ 4.57% < -1%) |
| CFO/TA 0.07 > 3% & CFO 41.0b > Net Income 33.2b |
| Net Debt (4.79b) to EBITDA (64.8b): 0.07 < 3 |
| Current Ratio: 1.90 > 1.5 & < 3 |
| Outstanding Shares: last quarter (832.7m) vs 12m ago -0.04% < -2% |
| Gross Margin: 50.15% > 18% (prev 57.65%; Δ -7.50% > 0.5%) |
| Asset Turnover: 60.80% > 50% (prev 64.34%; Δ -3.54% > 0%) |
| Interest Coverage Ratio: 10.40 > 6 (EBIT TTM 43.6b / Interest Expense TTM 4.19b) |
| A: 0.25 (Total Current Assets 299b - Total Current Liabilities 157b) / Total Assets 575b |
| B: 0.62 (Retained Earnings 356b / Total Assets 575b) |
| C: 0.08 (EBIT TTM 43.6b / Avg Total Assets 547b) |
| D: 2.03 (Book Value of Equity 383b / Total Liabilities 189b) |
| Altman-Z'' = 6.31 = AAA |
| DSRI: 1.08 (Receivables 124b/115b, Revenue 333b/334b) |
| GMI: 1.15 (GM 57.65% / 50.15%) |
| AQI: 0.99 (AQ_t 0.28 / AQ_t-1 0.28) |
| SGI: 1.00 (Revenue 333b / 334b) |
| TATA: -0.01 (NI 33.2b - CFO 41.0b) / TA 575b) |
| Beneish M = -2.84 (Cap -4..+1) = A |
As of October 10, 2026, the stock is trading at USD 12.48 with a total of 1,936,707 shares traded. Over the past week, the price has changed by +1.88%, over one month by +5.05%, over three months by -9.66% and over the past year by -11.04%.
Current recommended Stop Loss: 11.80 (which is 5.4% or 2.5 ATR below the current price).
Dr. Reddy’s Laboratories has received a consensus analysts rating of 3.40. Therefore, it is recommended to hold RDY.
- StrongBuy: 2
- Buy: 0
- Hold: 2
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 13.3 | 6.5% |
Market Cap INR = 987b (10.2b USD * 96.76 USD.INR)
P/E Trailing = 30.625
P/E Forward = 27.027
P/S = 0.0308
P/B = 2.5763
P/EG = 1.649
Revenue TTM = 333b INR
EBIT TTM = 43.6b INR
EBITDA TTM = 64.8b INR
Long Term Debt = 12.2b INR (from longTermDebt, last fiscal year)
Short Term Debt = 60.1b INR (from shortTermDebt, last quarter)
Debt = 86.2b INR (from shortLongTermDebtTotal, last quarter) + Leases 14.3b
Net Debt = 4.79b INR (calculated: Debt 86.2b - CCE 81.4b)
Enterprise Value = 992b INR (987b + Debt 86.2b - CCE 81.4b)
Interest Coverage Ratio = 10.40 (Ebit TTM 43.6b / Interest Expense TTM 4.19b)
EV/FCF = 65.51x (Enterprise Value 992b / FCF TTM 15.1b)
FCF Yield = 1.53% (FCF TTM 15.1b / Enterprise Value 992b)
FCF Margin = 4.55% (FCF TTM 15.1b / Revenue TTM 333b)
Net Margin = 9.96% (Net Income TTM 33.2b / Revenue TTM 333b)
Gross Margin = 50.15% ((Revenue TTM 333b - Cost of Revenue TTM 166b) / Revenue TTM)
Gross Margin QoQ = 46.52% (prev 44.82%)
Tobins Q-Ratio = 1.72 (Enterprise Value 992b / Total Assets 575b)
Interest Expense / Debt = 4.87% (Interest Expense 4.19b / Debt 86.2b)
Taxrate = 20.75% (8.58b / 41.4b)
NOPAT = 34.6b (EBIT 43.6b * (1 - 20.75%))
Current Ratio = 1.90 (Total Current Assets 299b / Total Current Liabilities 157b)
Debt / Equity = 0.22 (Debt 86.2b / totalStockholderEquity, last quarter 383b)
Debt / EBITDA = 0.07 (Net Debt 4.79b / EBITDA 64.8b)
Debt / FCF = 0.32 (Net Debt 4.79b / FCF TTM 15.1b)
Total Stockholder Equity = 371b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.06% (Net Income 33.2b / Total Assets 575b)
RoE = 8.94% (Net Income TTM 33.2b / Total Stockholder Equity 371b)
RoCE = 11.39% (EBIT 43.6b / Capital Employed (Equity 371b + L.T.Debt 12.2b))
RoIC = 7.50% (NOPAT 34.6b / Invested Capital 461b)
WACC = 6.17% (E(987b)/V(1074b) * Re(6.37%) + D(86.2b)/V(1074b) * Rd(4.87%) * (1-Tc(0.21)))
Discount Rate = 6.37% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -39.39 | Cagr: -0.07%
[DCF] Terminal Value 76.06% ; FCFF base≈14.9b ; Y1≈15.5b ; Y5≈17.8b
[DCF] Fair Price = 324.1 (EV 275b - Net Debt 4.79b = Equity 270b / Shares 833.0m; r=8.35% [WACC [floored]]; 5y FCF grow 4.89% → 2.50% )
EPS Correlation: -61.90 | EPS CAGR: -63.27% | SUE: -0.01 | # QB: 0
Revenue Correlation: 86.58 | Revenue CAGR: 39.19% | SUE: 0.00 | # QB: 0
EPS current Quarter (2026-09-30): EPS=0.00 | Chg30d=N/A | Revisions=N/A | Analysts=0
EPS next Quarter (2026-12-31): EPS=0.00 | Chg30d=N/A | Revisions=N/A | Analysts=0
EPS current Year (2027-03-31): EPS=43.85 | Chg30d=-14.09% | Revisions=-25% | GrowthEPS=-20.8% | GrowthRev=+4.8%
EPS next Year (2028-03-31): EPS=62.08 | Chg30d=-1.96% | Revisions=-25% | GrowthEPS=+41.6% | GrowthRev=+11.6%