(RDY) Dr. Reddy’s Laboratories - NYSE
Sector: Healthcare | Industry: Drug Manufacturers - Specialty & Generic | Exchange: NYSE (USA) | Market Cap: 11.075m USD | Total Return: -12% in 12m
Avg Turnover: 19.2M
EPS Trend: -59.2%
Qual. Beats: 0
Rev. Trend: 91.8%
Qual. Beats: 0
Warnings
Choppy
Tailwinds
No distinct edge detected
Dr. Reddy’s Laboratories Limited (RDY) is an India-based multinational pharmaceutical company specializing in the manufacture and marketing of generic formulations, active pharmaceutical ingredients (APIs), and biologics. The company operates through three primary segments: Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and a proprietary products division focused on oncology and inflammation therapies. Its diversified portfolio covers major therapeutic areas including cardiovascular, gastro-intestinal, and anti-diabetic treatments.
The company utilizes an integrated business model, controlling the supply chain from the production of raw chemical intermediates to finished dosage forms. This vertical integration is a common strategy in the generic pharmaceutical sector to mitigate pricing pressure and ensure quality control across international markets. Dr. Reddys maintains a significant global footprint, with major revenue contributions from North America, Europe, and emerging markets such as Russia.
Investors can find additional valuation metrics and peer comparisons for RDY on ValueRay. Given the capital-intensive nature of drug development and the regulatory complexities of the FDA and other global health authorities, the firm continues to allocate resources toward differentiated formulations and complex generics to maintain its competitive position.
- U.S. generic market pricing pressure impacts North American revenue growth margins
- Expansion into biosimilars and biologics drives long-term high-value pipeline development
- Regulatory compliance at manufacturing facilities influences FDA product approval timelines
- Research and development spending on differentiated formulations affects quarterly net income
- Emerging market growth in India and Russia mitigates Western pricing volatility
| Net Income: 42.9b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA 1.83 > 1.0 |
| NWC/Revenue: 39.08% < 20% (prev 36.78%; Δ 2.31% < -1%) |
| CFO/TA 0.10 > 3% & CFO 56.5b > Net Income 42.9b |
| Net Debt (4.14b) to EBITDA (77.3b): 0.05 < 3 |
| Current Ratio: 1.80 > 1.5 & < 3 |
| Outstanding Shares: last quarter (834.8m) vs 12m ago 0.06% < -2% |
| Gross Margin: 52.74% > 18% (prev 58.50%; Δ -5.76% > 0.5%) |
| Asset Turnover: 63.55% > 50% (prev 66.03%; Δ -2.48% > 0%) |
| Interest Coverage Ratio: 15.08 > 6 (EBIT TTM 56.7b / Interest Expense TTM 3.76b) |
| A: 0.23 (Total Current Assets 296b - Total Current Liabilities 164b) / Total Assets 568b |
| B: 0.61 (Retained Earnings 345b / Total Assets 568b) |
| C: 0.11 (EBIT TTM 56.7b / Avg Total Assets 530b) |
| D: 1.90 (Book Value of Equity 370b / Total Liabilities 195b) |
| Altman-Z'' = 6.21 = AAA |
| DSRI: 0.87 (Receivables 99.2b/110b, Revenue 337b/326b) |
| GMI: 1.11 (GM 58.50% / 52.74%) |
| AQI: 0.95 (AQ_t 0.28 / AQ_t-1 0.29) |
| SGI: 1.04 (Revenue 337b / 326b) |
| TATA: -0.02 (NI 42.9b - CFO 56.5b) / TA 568b) |
| Beneish M = -3.04 (Cap -4..+1) = AA |
As of June 19, 2026, the stock is trading at USD 13.29 with a total of 1,332,021 shares traded.
Over the past week, the price has changed by -0.52%,
over one month by -2.28%,
over three months by -4.11% and
over the past year by -11.96%.
Dr. Reddy’s Laboratories has received a consensus analysts rating of 3.50. Therefore, it is recommended to hold RDY.
- StrongBuy: 2
- Buy: 0
- Hold: 1
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 14.2 | 7.1% |
Market Cap INR = 1045b (11.1b USD * 94.3375 USD.INR)
P/E Trailing = 24.6296
P/E Forward = 24.9377
P/S = 0.033
P/B = 2.8093
P/EG = 1.6079
Revenue TTM = 337b INR
EBIT TTM = 56.7b INR
EBITDA TTM = 77.3b INR
Long Term Debt = 12.2b INR (from longTermDebt, last quarter)
Short Term Debt = 63.8b INR (from shortTermDebt, last quarter)
Debt = 90.2b INR (from shortLongTermDebtTotal, last quarter) + Leases 14.4b
Net Debt = 4.14b INR (calculated: Debt 90.2b - CCE 86.1b)
Enterprise Value = 1049b INR (1045b + Debt 90.2b - CCE 86.1b)
Interest Coverage Ratio = 15.08 (Ebit TTM 56.7b / Interest Expense TTM 3.76b)
EV/FCF = 43.24x (Enterprise Value 1049b / FCF TTM 24.3b)
FCF Yield = 2.31% (FCF TTM 24.3b / Enterprise Value 1049b)
FCF Margin = 7.20% (FCF TTM 24.3b / Revenue TTM 337b)
Net Margin = 12.72% (Net Income TTM 42.9b / Revenue TTM 337b)
Gross Margin = 52.74% ((Revenue TTM 337b - Cost of Revenue TTM 159b) / Revenue TTM)
Gross Margin QoQ = 44.82% (prev 53.63%)
Tobins Q-Ratio = 1.85 (Enterprise Value 1049b / Total Assets 568b)
Interest Expense / Debt = 4.17% (Interest Expense 3.76b / Debt 90.2b)
Taxrate = 22.51% (12.3b / 54.8b)
NOPAT = 44.0b (EBIT 56.7b * (1 - 22.51%))
Current Ratio = 1.80 (Total Current Assets 296b / Total Current Liabilities 164b)
Debt / Equity = 0.24 (Debt 90.2b / totalStockholderEquity, last quarter 370b)
Debt / EBITDA = 0.05 (Net Debt 4.14b / EBITDA 77.3b)
Debt / FCF = 0.17 (Net Debt 4.14b / FCF TTM 24.3b)
Total Stockholder Equity = 363b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.08% (Net Income 42.9b / Total Assets 568b)
RoE = 11.83% (Net Income TTM 42.9b / Total Stockholder Equity 363b)
RoCE = 15.14% (EBIT 56.7b / Capital Employed (Equity 363b + L.T.Debt 12.2b))
RoIC = 9.76% (NOPAT 44.0b / Invested Capital 451b)
WACC = 6.07% (E(1045b)/V(1135b) * Re(6.32%) + D(90.2b)/V(1135b) * Rd(4.17%) * (1-Tc(0.23)))
Discount Rate = 6.32% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -49.69 | Cagr: -0.05%
[DCF] Terminal Value 77.97% ; FCFF base≈19.4b ; Y1≈22.2b ; Y5≈32.7b
[DCF] Fair Price = 585.5 (EV 492b - Net Debt 4.14b = Equity 488b / Shares 832.7m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -59.19 | EPS CAGR: -23.09% | SUE: -0.02 | # QB: 0
Revenue Correlation: 91.77 | Revenue CAGR: 47.91% | SUE: 0.11 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.00 | Chg30d=N/A | Revisions=N/A | Analysts=0
EPS next Quarter (2026-09-30): EPS=0.00 | Chg30d=N/A | Revisions=N/A | Analysts=0
EPS current Year (2027-03-31): EPS=51.04 | Chg30d=N/A | Revisions=-20% | GrowthEPS=-7.8% | GrowthRev=+6.3%
EPS next Year (2028-03-31): EPS=63.32 | Chg30d=N/A | Revisions=-20% | GrowthEPS=+24.1% | GrowthRev=+10.3%