DR. REDDY'S LABORATORIES-ADR (RDY) Fundamental Analysis & Valuation
NYSE:RDY • US2561352038
Current stock price
13.87 USD
+0.42 (+3.12%)
At close:
13.87 USD
0 (0%)
After Hours:
This RDY fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. RDY Profitability Analysis
1.1 Basic Checks
- In the past year RDY was profitable.
- In the past year RDY had a positive cash flow from operations.
- In the past 5 years RDY has always been profitable.
- Each year in the past 5 years RDY had a positive operating cash flow.
1.2 Ratios
- RDY has a Return On Assets of 10.62%. This is amongst the best in the industry. RDY outperforms 92.23% of its industry peers.
- Looking at the Return On Equity, with a value of 16.03%, RDY belongs to the top of the industry, outperforming 89.12% of the companies in the same industry.
- RDY has a Return On Invested Capital of 13.03%. This is amongst the best in the industry. RDY outperforms 91.71% of its industry peers.
- RDY had an Average Return On Invested Capital over the past 3 years of 15.26%. This is above the industry average of 13.06%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.62% | ||
| ROE | 16.03% | ||
| ROIC | 13.03% |
ROA(3y)13.25%
ROA(5y)10.88%
ROE(3y)18.65%
ROE(5y)15.68%
ROIC(3y)15.26%
ROIC(5y)13.95%
1.3 Margins
- RDY's Profit Margin of 16.82% is amongst the best of the industry. RDY outperforms 89.12% of its industry peers.
- In the last couple of years the Profit Margin of RDY has grown nicely.
- RDY has a better Operating Margin (19.62%) than 87.56% of its industry peers.
- RDY's Operating Margin has improved in the last couple of years.
- RDY has a better Gross Margin (66.88%) than 76.17% of its industry peers.
- RDY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.62% | ||
| PM (TTM) | 16.82% | ||
| GM | 66.88% |
OM growth 3Y9.42%
OM growth 5Y4.7%
PM growth 3Y19.59%
PM growth 5Y8.42%
GM growth 3Y2.12%
GM growth 5Y0.39%
2. RDY Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RDY is creating some value.
- RDY has about the same amout of shares outstanding than it did 1 year ago.
- RDY has more shares outstanding than it did 5 years ago.
- RDY has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 5.68 indicates that RDY is not in any danger for bankruptcy at the moment.
- RDY's Altman-Z score of 5.68 is amongst the best of the industry. RDY outperforms 80.31% of its industry peers.
- RDY has a debt to FCF ratio of 3.17. This is a good value and a sign of high solvency as RDY would need 3.17 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 3.17, RDY belongs to the top of the industry, outperforming 90.16% of the companies in the same industry.
- A Debt/Equity ratio of 0.03 indicates that RDY is not too dependend on debt financing.
- RDY has a Debt to Equity ratio (0.03) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 5.68 |
ROIC/WACC1.28
WACC10.14%
2.3 Liquidity
- A Current Ratio of 1.85 indicates that RDY should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.85, RDY is doing worse than 63.73% of the companies in the same industry.
- A Quick Ratio of 1.35 indicates that RDY should not have too much problems paying its short term obligations.
- RDY has a Quick ratio of 1.35. This is in the lower half of the industry: RDY underperforms 66.84% of its industry peers.
- RDY does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.35 |
3. RDY Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 3.81% over the past year.
- The Earnings Per Share has been growing by 23.62% on average over the past years. This is a very strong growth
- RDY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.06%.
- RDY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.26% yearly.
EPS 1Y (TTM)3.81%
EPS 3Y33.55%
EPS 5Y23.62%
EPS Q2Q%-14.29%
Revenue 1Y (TTM)11.06%
Revenue growth 3Y14.86%
Revenue growth 5Y13.26%
Sales Q2Q%4.44%
3.2 Future
- Based on estimates for the next years, RDY will show a decrease in Earnings Per Share. The EPS will decrease by -1.22% on average per year.
- Based on estimates for the next years, RDY will show a small growth in Revenue. The Revenue will grow by 6.56% on average per year.
EPS Next Y-7.04%
EPS Next 2Y-8.78%
EPS Next 3Y-1.22%
EPS Next 5YN/A
Revenue Next Year6.48%
Revenue Next 2Y4.7%
Revenue Next 3Y6.26%
Revenue Next 5Y6.56%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. RDY Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 19.54 indicates a rather expensive valuation of RDY.
- Based on the Price/Earnings ratio, RDY is valued cheaply inside the industry as 83.94% of the companies are valued more expensively.
- RDY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.50.
- RDY is valuated rather expensively with a Price/Forward Earnings ratio of 23.06.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of RDY indicates a somewhat cheap valuation: RDY is cheaper than 77.72% of the companies listed in the same industry.
- RDY's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.54 | ||
| Fwd PE | 23.06 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RDY is valued cheaply inside the industry as 84.97% of the companies are valued more expensively.
- RDY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RDY is cheaper than 76.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.67 | ||
| EV/EBITDA | 11.24 |
4.3 Compensation for Growth
- The excellent profitability rating of RDY may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.83
EPS Next 2Y-8.78%
EPS Next 3Y-1.22%
5. RDY Dividend Analysis
5.1 Amount
- RDY has a yearly dividend return of 0.63%, which is pretty low.
- RDY's Dividend Yield is rather good when compared to the industry average which is at 0.79. RDY pays more dividend than 89.12% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.89, RDY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
5.2 History
- The dividend of RDY decreases each year by -19.44%.
- RDY has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-19.44%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- RDY pays out 11.54% of its income as dividend. This is a sustainable payout ratio.
- RDY's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP11.54%
EPS Next 2Y-8.78%
EPS Next 3Y-1.22%
RDY Fundamentals: All Metrics, Ratios and Statistics
13.87
+0.42 (+3.12%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)01-21 2026-01-21/amc
Earnings (Next)05-07 2026-05-07/amc
Inst Owners52.01%
Inst Owner Change0.3%
Ins Owners1.23%
Ins Owner Change0%
Market Cap11.55B
Revenue(TTM)346.82B
Net Income(TTM)57.72B
Analysts67.27
Price Target15.24 (9.88%)
Short Float %2.29%
Short Ratio7.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
Yearly Dividend0.09
Dividend Growth(5Y)-19.44%
DP11.54%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.63%
Min EPS beat(2)-8.52%
Max EPS beat(2)-6.74%
EPS beat(4)1
Avg EPS beat(4)-3.93%
Min EPS beat(4)-8.52%
Max EPS beat(4)2.77%
EPS beat(8)4
Avg EPS beat(8)-0.94%
EPS beat(12)8
Avg EPS beat(12)6.66%
EPS beat(16)10
Avg EPS beat(16)7.01%
Revenue beat(2)0
Avg Revenue beat(2)-2.69%
Min Revenue beat(2)-3.88%
Max Revenue beat(2)-1.51%
Revenue beat(4)1
Avg Revenue beat(4)-1.2%
Min Revenue beat(4)-3.88%
Max Revenue beat(4)1%
Revenue beat(8)4
Avg Revenue beat(8)0.25%
Revenue beat(12)7
Avg Revenue beat(12)1.24%
Revenue beat(16)9
Avg Revenue beat(16)1.2%
PT rev (1m)-2.52%
PT rev (3m)2.49%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-3.66%
EPS NY rev (1m)-0.75%
EPS NY rev (3m)-1.1%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)-1.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.54 | ||
| Fwd PE | 23.06 | ||
| P/S | 3.16 | ||
| P/FCF | 58.67 | ||
| P/OCF | 18.42 | ||
| P/B | 3.01 | ||
| P/tB | 4.42 | ||
| EV/EBITDA | 11.24 |
EPS(TTM)0.71
EY5.12%
EPS(NY)0.6
Fwd EY4.34%
FCF(TTM)0.24
FCFY1.7%
OCF(TTM)0.75
OCFY5.43%
SpS4.39
BVpS4.61
TBVpS3.14
PEG (NY)N/A
PEG (5Y)0.83
Graham Number8.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.62% | ||
| ROE | 16.03% | ||
| ROCE | 17.14% | ||
| ROIC | 13.03% | ||
| ROICexc | 16.05% | ||
| ROICexgc | 25.11% | ||
| OM | 19.62% | ||
| PM (TTM) | 16.82% | ||
| GM | 66.88% | ||
| FCFM | 5.38% |
ROA(3y)13.25%
ROA(5y)10.88%
ROE(3y)18.65%
ROE(5y)15.68%
ROIC(3y)15.26%
ROIC(5y)13.95%
ROICexc(3y)19.62%
ROICexc(5y)17.62%
ROICexgc(3y)25.36%
ROICexgc(5y)22.59%
ROCE(3y)21.22%
ROCE(5y)19.86%
ROICexgc growth 3Y6.58%
ROICexgc growth 5Y2.58%
ROICexc growth 3Y0.6%
ROICexc growth 5Y-0.12%
OM growth 3Y9.42%
OM growth 5Y4.7%
PM growth 3Y19.59%
PM growth 5Y8.42%
GM growth 3Y2.12%
GM growth 5Y0.39%
F-Score4
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 3.17 | ||
| Debt/EBITDA | 0.13 | ||
| Cap/Depr | 211.61% | ||
| Cap/Sales | 11.76% | ||
| Interest Coverage | 16.55 | ||
| Cash Conversion | 68.09% | ||
| Profit Quality | 32% | ||
| Current Ratio | 1.85 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 5.68 |
F-Score4
WACC10.14%
ROIC/WACC1.28
Cap/Depr(3y)179.81%
Cap/Depr(5y)161.03%
Cap/Sales(3y)9.33%
Cap/Sales(5y)8.68%
Profit Quality(3y)47.43%
Profit Quality(5y)60.48%
High Growth Momentum
Growth
EPS 1Y (TTM)3.81%
EPS 3Y33.55%
EPS 5Y23.62%
EPS Q2Q%-14.29%
EPS Next Y-7.04%
EPS Next 2Y-8.78%
EPS Next 3Y-1.22%
EPS Next 5YN/A
Revenue 1Y (TTM)11.06%
Revenue growth 3Y14.86%
Revenue growth 5Y13.26%
Sales Q2Q%4.44%
Revenue Next Year6.48%
Revenue Next 2Y4.7%
Revenue Next 3Y6.26%
Revenue Next 5Y6.56%
EBIT growth 1Y1.53%
EBIT growth 3Y25.68%
EBIT growth 5Y18.58%
EBIT Next Year11.9%
EBIT Next 3Y6.94%
EBIT Next 5Y9.33%
FCF growth 1Y-62.42%
FCF growth 3Y9.92%
FCF growth 5Y-12.7%
OCF growth 1Y-18.43%
OCF growth 3Y18.21%
OCF growth 5Y9.24%
DR. REDDY'S LABORATORIES-ADR / RDY Fundamental Analysis FAQ
What is the ChartMill fundamental rating of DR. REDDY'S LABORATORIES-ADR (RDY) stock?
ChartMill assigns a fundamental rating of 6 / 10 to RDY.
What is the valuation status of DR. REDDY'S LABORATORIES-ADR (RDY) stock?
ChartMill assigns a valuation rating of 5 / 10 to DR. REDDY'S LABORATORIES-ADR (RDY). This can be considered as Fairly Valued.
What is the profitability of RDY stock?
DR. REDDY'S LABORATORIES-ADR (RDY) has a profitability rating of 8 / 10.
Can you provide the expected EPS growth for RDY stock?
The Earnings per Share (EPS) of DR. REDDY'S LABORATORIES-ADR (RDY) is expected to decline by -7.04% in the next year.
Is the dividend of DR. REDDY'S LABORATORIES-ADR sustainable?
The dividend rating of DR. REDDY'S LABORATORIES-ADR (RDY) is 4 / 10 and the dividend payout ratio is 11.54%.