DR. REDDY'S LABORATORIES-ADR (RDY) Fundamental Analysis & Valuation

NYSE:RDY • US2561352038

Current stock price

14.14 USD
+0.28 (+2.02%)
At close:
14.2 USD
+0.06 (+0.42%)
Pre-Market:

This RDY fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. RDY Profitability Analysis

1.1 Basic Checks

  • RDY had positive earnings in the past year.
  • RDY had a positive operating cash flow in the past year.
  • In the past 5 years RDY has always been profitable.
  • Each year in the past 5 years RDY had a positive operating cash flow.
RDY Yearly Net Income VS EBIT VS OCF VS FCFRDY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20B 40B 60B

1.2 Ratios

  • RDY's Return On Assets of 10.62% is amongst the best of the industry. RDY outperforms 92.19% of its industry peers.
  • RDY has a Return On Equity of 16.03%. This is amongst the best in the industry. RDY outperforms 89.06% of its industry peers.
  • RDY's Return On Invested Capital of 13.03% is amongst the best of the industry. RDY outperforms 91.67% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for RDY is above the industry average of 12.98%.
Industry RankSector 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%
RDY Yearly ROA, ROE, ROICRDY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • The Profit Margin of RDY (16.82%) is better than 89.06% of its industry peers.
  • RDY's Profit Margin has improved in the last couple of years.
  • RDY has a better Operating Margin (19.62%) than 86.98% of its industry peers.
  • In the last couple of years the Operating Margin of RDY has grown nicely.
  • The Gross Margin of RDY (66.88%) is better than 76.04% of its industry peers.
  • In the last couple of years the Gross Margin of RDY has remained more or less at the same level.
Industry RankSector 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%
RDY Yearly Profit, Operating, Gross MarginsRDY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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6

2. RDY Health Analysis

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.
  • RDY has a worse debt/assets ratio than last year.
RDY Yearly Shares OutstandingRDY Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M
RDY Yearly Total Debt VS Total AssetsRDY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100B 200B 300B 400B

2.2 Solvency

  • RDY has an Altman-Z score of 5.84. This indicates that RDY is financially healthy and has little risk of bankruptcy at the moment.
  • RDY has a better Altman-Z score (5.84) than 79.17% 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 90.10% 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 has a Debt to Equity ratio (0.03) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.03
Debt/FCF 3.17
Altman-Z 5.84
ROIC/WACC1.27
WACC10.23%
RDY Yearly LT Debt VS Equity VS FCFRDY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100B 200B 300B

2.3 Liquidity

  • A Current Ratio of 1.85 indicates that RDY should not have too much problems paying its short term obligations.
  • With a Current ratio value of 1.85, RDY is not doing good in the industry: 63.02% of the companies in the same industry are doing better.
  • 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 66.67% of its industry peers.
  • The current and quick ratio evaluation for RDY is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 1.85
Quick Ratio 1.35
RDY Yearly Current Assets VS Current LiabilitesRDY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B 200B 250B

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4

3. RDY Growth Analysis

3.1 Past

  • RDY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.81%.
  • RDY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.62% yearly.
  • 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 -1.22% yearly.
  • RDY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.56% yearly.
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

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
RDY Yearly Revenue VS EstimatesRDY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 100B 200B 300B 400B
RDY Yearly EPS VS EstimatesRDY Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 20 40 60

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5

4. RDY Valuation Analysis

4.1 Price/Earnings Ratio

  • RDY is valuated rather expensively with a Price/Earnings ratio of 19.64.
  • RDY's Price/Earnings ratio is rather cheap when compared to the industry. RDY is cheaper than 83.33% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of RDY to the average of the S&P500 Index (25.73), we can say RDY is valued slightly cheaper.
  • The Price/Forward Earnings ratio is 23.36, which indicates a rather expensive current valuation of RDY.
  • RDY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RDY is cheaper than 77.08% of the companies in the same industry.
  • RDY's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.72.
Industry RankSector Rank
PE 19.64
Fwd PE 23.36
RDY Price Earnings VS Forward Price EarningsRDY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, RDY is valued cheaper than 84.90% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of RDY indicates a somewhat cheap valuation: RDY is cheaper than 75.52% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 59.43
EV/EBITDA 11.79
RDY Per share dataRDY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4

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%

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4

5. RDY Dividend Analysis

5.1 Amount

  • RDY has a yearly dividend return of 0.61%, which is pretty low.
  • RDY's Dividend Yield is rather good when compared to the industry average which is at 0.77. RDY pays more dividend than 89.06% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.91, RDY's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.61%

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
RDY Yearly Dividends per shareRDY Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8

5.3 Sustainability

  • 11.54% of the earnings are spent on dividend by RDY. This is a low number and sustainable payout ratio.
  • The Dividend Rate of RDY has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP11.54%
EPS Next 2Y-8.78%
EPS Next 3Y-1.22%
RDY Yearly Income VS Free CF VS DividendRDY Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20B 40B
RDY Dividend Payout.RDY Dividend Payout, showing the Payout Ratio.RDY Dividend Payout.PayoutRetained Earnings

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RDY Fundamentals: All Metrics, Ratios and Statistics

DR. REDDY'S LABORATORIES-ADR

NYSE:RDY (3/19/2026, 8:26:23 PM)

Premarket: 14.2 +0.06 (+0.42%)

14.14

+0.28 (+2.02%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)01-21
Earnings (Next)05-07
Inst Owners52.01%
Inst Owner Change0.3%
Ins Owners1.23%
Ins Owner ChangeN/A
Market Cap11.77B
Revenue(TTM)346.82B
Net Income(TTM)57.72B
Analysts67.27
Price Target15.24 (7.78%)
Short Float %2.29%
Short Ratio7.12
Dividend
Industry RankSector 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)-2.52%
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)1.31%
Revenue NY rev (3m)1.27%
Valuation
Industry RankSector Rank
PE 19.64
Fwd PE 23.36
P/S 3.2
P/FCF 59.43
P/OCF 18.66
P/B 3.05
P/tB 4.48
EV/EBITDA 11.79
EPS(TTM)0.72
EY5.09%
EPS(NY)0.61
Fwd EY4.28%
FCF(TTM)0.24
FCFY1.68%
OCF(TTM)0.76
OCFY5.36%
SpS4.42
BVpS4.64
TBVpS3.16
PEG (NY)N/A
PEG (5Y)0.83
Graham Number8.67
Profitability
Industry RankSector 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 RankSector 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 5.84
F-Score4
WACC10.23%
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-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%.