DR. REDDY'S LABORATORIES-ADR (RDY) Stock Fundamental Analysis
NYSE:RDY • US2561352038
14.38 USD
0 (0%)
At close: Mar 2, 2026
14.21 USD
-0.17 (-1.18%)
After Hours: 3/2/2026, 8:04:00 PM
Taking everything into account, RDY scores 6 out of 10 in our fundamental rating. RDY was compared to 193 industry peers in the Pharmaceuticals industry. While RDY has a great profitability rating, there are some minor concerns on its financial health. RDY is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year RDY was profitable.
- RDY had a positive operating cash flow in the past year.
- RDY had positive earnings in each of the past 5 years.
- In the past 5 years RDY always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 10.62%, RDY belongs to the top of the industry, outperforming 91.71% of the companies in the same industry.
- RDY's Return On Equity of 16.03% is amongst the best of the industry. RDY outperforms 89.12% of its industry peers.
- RDY has a better Return On Invested Capital (13.03%) than 91.71% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for RDY is above the industry average of 12.91%.
| 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
- With an excellent Profit Margin value of 16.82%, RDY belongs to the best of the industry, outperforming 88.60% of the companies in the same industry.
- RDY's Profit Margin has improved in the last couple of years.
- The Operating Margin of RDY (19.62%) is better than 87.05% of its industry peers.
- RDY's Operating Margin has improved in the last couple of years.
- RDY's Gross Margin of 66.88% is fine compared to the rest of the industry. RDY outperforms 76.68% 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. Health
2.1 Basic Checks
- RDY has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
- The debt/assets ratio for RDY is higher compared to a year ago.
2.2 Solvency
- RDY has an Altman-Z score of 5.81. This indicates that RDY is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 5.81, RDY is doing good in the industry, outperforming 77.20% of the companies in the same industry.
- 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 90.67% of the companies in the same industry.
- RDY has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
- RDY's Debt to Equity ratio of 0.03 is in line compared to the rest of the industry. RDY outperforms 54.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 5.81 |
ROIC/WACC1.27
WACC10.26%
2.3 Liquidity
- A Current Ratio of 1.85 indicates that RDY should not have too much problems paying its short term obligations.
- The Current ratio of RDY (1.85) is worse than 63.21% of its industry peers.
- RDY has a Quick Ratio of 1.35. This is a normal value and indicates that RDY is financially healthy and should not expect problems in meeting its short term obligations.
- RDY has a Quick ratio of 1.35. This is in the lower half of the industry: RDY underperforms 66.32% 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. Growth
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
- RDY is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.42% yearly.
- The Revenue is expected to grow by 6.32% on average over the next years.
EPS Next Y-6.34%
EPS Next 2Y-8.18%
EPS Next 3Y-1.42%
EPS Next 5YN/A
Revenue Next Year6.48%
Revenue Next 2Y4.7%
Revenue Next 3Y6.26%
Revenue Next 5Y6.32%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 19.70, the valuation of RDY can be described as rather expensive.
- RDY's Price/Earnings ratio is rather cheap when compared to the industry. RDY is cheaper than 83.94% of the companies in the same industry.
- RDY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.13.
- A Price/Forward Earnings ratio of 22.90 indicates a rather expensive valuation of RDY.
- 76.68% of the companies in the same industry are more expensive than RDY, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of RDY to the average of the S&P500 Index (28.11), we can say RDY is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.7 | ||
| Fwd PE | 22.9 |
4.2 Price Multiples
- 86.53% of the companies in the same industry are more expensive than RDY, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, RDY is valued a bit cheaper than 77.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.03 | ||
| EV/EBITDA | 11.7 |
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-8.18%
EPS Next 3Y-1.42%
5. Dividend
5.1 Amount
- RDY has a yearly dividend return of 0.61%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.67, RDY pays a better dividend. On top of this RDY pays more dividend than 89.12% of the companies listed in the same industry.
- With a Dividend Yield of 0.61, RDY pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
5.2 History
- The dividend of RDY decreases each year by -19.44%.
- RDY has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-19.44%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 11.54% of the earnings are spent on dividend by RDY. This is a low number and 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-8.18%
EPS Next 3Y-1.42%
14.38
0 (0%)
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 Owners49.42%
Inst Owner Change0.41%
Ins Owners1.23%
Ins Owner ChangeN/A
Market Cap11.97B
Revenue(TTM)346.82B
Net Income(TTM)57.72B
Analysts67.27
Price Target15.24 (5.98%)
Short Float %2.13%
Short Ratio8.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
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)2.13%
PT rev (3m)1.34%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-3.66%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.74%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)-1.38%
Revenue NY rev (1m)1.31%
Revenue NY rev (3m)1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.7 | ||
| Fwd PE | 22.9 | ||
| P/S | 3.18 | ||
| P/FCF | 59.03 | ||
| P/OCF | 18.54 | ||
| P/B | 3.03 | ||
| P/tB | 4.45 | ||
| EV/EBITDA | 11.7 |
EPS(TTM)0.73
EY5.08%
EPS(NY)0.63
Fwd EY4.37%
FCF(TTM)0.24
FCFY1.69%
OCF(TTM)0.78
OCFY5.39%
SpS4.52
BVpS4.75
TBVpS3.23
PEG (NY)N/A
PEG (5Y)0.83
Graham Number8.83
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 | 5.81 |
F-Score4
WACC10.26%
ROIC/WACC1.27
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-6.34%
EPS Next 2Y-8.18%
EPS Next 3Y-1.42%
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 5Y6.32%
EBIT growth 1Y1.53%
EBIT growth 3Y25.68%
EBIT growth 5Y18.58%
EBIT Next Year11.9%
EBIT Next 3Y6.94%
EBIT Next 5Y9.08%
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 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 -6.34% 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%.