(RDY) Dr. Reddy’s Laboratories - Ratings and Ratios
Generics, APIs, Biologics, Oncology, Formulations
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 0.62% |
| Yield on Cost 5y | 0.86% |
| Yield CAGR 5y | -52.31% |
| Payout Consistency | 84.4% |
| Payout Ratio | - |
| Risk via 5d forecast | |
|---|---|
| Volatility | 22.5% |
| Value at Risk 5%th | 35.2% |
| Relative Tail Risk | -4.84% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.01 |
| Alpha | -10.93 |
| CAGR/Max DD | 0.43 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.452 |
| Beta | 0.455 |
| Beta Downside | 0.412 |
| Drawdowns 3y | |
|---|---|
| Max DD | 26.61% |
| Mean DD | 9.08% |
| Median DD | 8.24% |
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: 40.23% < 20% (prev 38.89%; Δ 1.34% < -1%) |
| CFO/TA 0.11 > 3% & CFO 63.11b > Net Income 56.59b |
| Net Debt (35.43b) to EBITDA (74.21b): 0.48 < 3 |
| Current Ratio: 1.88 > 1.5 & < 3 |
| Outstanding Shares: last quarter (832.5m) vs 12m ago -0.21% < -2% |
| Gross Margin: 57.96% > 18% (prev 0.59%; Δ 5737 % > 0.5%) |
| Asset Turnover: 66.30% > 50% (prev 64.71%; Δ 1.59% > 0%) |
| Interest Coverage Ratio: 17.93 > 6 (EBITDA TTM 74.21b / Interest Expense TTM 3.34b) |
Altman Z'' 6.38
| 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: 0.11 (EBIT TTM 59.84b / Avg Total Assets 521.98b) |
| D: 1.87 (Book Value of Equity 349.78b / Total Liabilities 187.14b) |
| Altman-Z'' Score: 6.38 = AAA |
Beneish M -3.11
| DSRI: 0.83 (Receivables 103.21b/111.49b, Revenue 346.10b/311.31b) |
| GMI: 1.02 (GM 57.96% / 59.31%) |
| AQI: 0.95 (AQ_t 0.27 / AQ_t-1 0.28) |
| SGI: 1.11 (Revenue 346.10b / 311.31b) |
| TATA: -0.01 (NI 56.59b - CFO 63.11b) / TA 562.90b) |
| Beneish M-Score: -3.11 (Cap -4..+1) = AA |
ValueRay F-Score (Strict, 0-100) 71.82
| 1. Piotroski: 8.0pt |
| 2. FCF Yield: 2.24% |
| 3. FCF Margin: 7.01% |
| 4. Debt/Equity: 0.13 |
| 5. Debt/Ebitda: 0.48 |
| 6. ROIC - WACC: 4.22% |
| 7. RoE: 16.00% |
| 8. Revenue Trend: 60.37% |
| 9. EPS Trend: data missing |
What is the price of RDY shares?
Over the past week, the price has changed by +5.95%, over one month by -2.83%, over three months by -5.25% and over the past year by +1.07%.
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 | 14.3 | 4.4% |
| Analysts Target Price | 14.3 | 4.4% |
| ValueRay Target Price | 14.7 | 7% |
RDY Fundamental Data Overview January 24, 2026
P/E Trailing = 18.527
P/E Forward = 24.2131
P/S = 0.0333
P/B = 2.8059
P/EG = 3.6694
Revenue TTM = 346.10b INR
EBIT TTM = 59.84b INR
EBITDA TTM = 74.21b INR
Long Term Debt = 3.80b INR (from longTermDebt, last fiscal year)
Short Term Debt = 54.09b INR (from shortLongTermDebt, last quarter)
Debt = 46.77b INR (from shortLongTermDebtTotal, last fiscal year)
Net Debt = 35.43b INR (from netDebt column, last quarter)
Enterprise Value = 1083.36b INR (1055.25b + Debt 46.77b - CCE 18.66b)
Interest Coverage Ratio = 17.93 (Ebit TTM 59.84b / Interest Expense TTM 3.34b)
EV/FCF = 44.66x (Enterprise Value 1083.36b / FCF TTM 24.26b)
FCF Yield = 2.24% (FCF TTM 24.26b / Enterprise Value 1083.36b)
FCF Margin = 7.01% (FCF TTM 24.26b / Revenue TTM 346.10b)
Net Margin = 16.35% (Net Income TTM 56.59b / Revenue TTM 346.10b)
Gross Margin = 57.96% ((Revenue TTM 346.10b - Cost of Revenue TTM 145.49b) / Revenue TTM)
Gross Margin QoQ = 64.64% (prev 54.67%)
Tobins Q-Ratio = 1.92 (Enterprise Value 1083.36b / Total Assets 562.90b)
Interest Expense / Debt = 2.02% (Interest Expense 944.0m / Debt 46.77b)
Taxrate = 22.91% (3.54b / 15.43b)
NOPAT = 46.13b (EBIT 59.84b * (1 - 22.91%))
Current Ratio = 1.88 (Total Current Assets 297.55b / Total Current Liabilities 158.31b)
Debt / Equity = 0.13 (Debt 46.77b / totalStockholderEquity, last quarter 372.37b)
Debt / EBITDA = 0.48 (Net Debt 35.43b / EBITDA 74.21b)
Debt / FCF = 1.46 (Net Debt 35.43b / 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 = 16.75% (EBIT 59.84b / Capital Employed (Equity 353.58b + L.T.Debt 3.80b))
RoIC = 11.55% (NOPAT 46.13b / Invested Capital 399.34b)
WACC = 7.33% (E(1055.25b)/V(1102.01b) * Re(7.59%) + D(46.77b)/V(1102.01b) * Rd(2.02%) * (1-Tc(0.23)))
Discount Rate = 7.59% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.95%
Fair Price DCF = unknown (Cash Flow 24.26b)
Revenue Correlation: 60.37 | Revenue CAGR: 259.4% | SUE: N/A | # QB: 0
Additional Sources for RDY Stock
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