DR. REDDY'S LABORATORIES-ADR (RDY) Stock Fundamental Analysis
USA - NYSE:RDY - US2561352038 - ADR
14.055 USD
+0.04 (+0.25%)
Taking everything into account, RDY scores 6 out of 10 in our fundamental rating. RDY was compared to 192 industry peers in the Pharmaceuticals industry. RDY scores excellent points on both the profitability and health parts. This is a solid base for a good stock. RDY has a correct valuation and a medium growth rate. These ratings could make RDY a good candidate for quality investing.
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.
RDY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RDY has a Return On Assets of 10.62%. This is amongst the best in the industry. RDY outperforms 92.19% 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 89.06% of the companies in the same industry.
With an excellent Return On Invested Capital value of 13.03%, RDY belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RDY is in line with the industry average of 13.48%.
| 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 89.58% of its industry peers.
In the last couple of years the Profit Margin of RDY has grown nicely.
RDY's Operating Margin of 19.62% is amongst the best of the industry. RDY outperforms 86.46% of its industry peers.
RDY's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 66.88%, RDY is doing good in the industry, outperforming 75.00% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RDY is still creating some value.
Compared to 1 year ago, RDY has about the same amount of shares outstanding.
RDY has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, RDY has a worse debt to assets ratio.
2.2 Solvency
RDY has an Altman-Z score of 5.63. This indicates that RDY is financially healthy and has little risk of bankruptcy at the moment.
RDY has a Altman-Z score of 5.63. This is amongst the best in the industry. RDY outperforms 80.21% 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.
RDY has a Debt to FCF ratio of 3.17. This is amongst the best in the industry. RDY outperforms 88.54% of its industry peers.
A Debt/Equity ratio of 0.03 indicates that RDY is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.03, RDY perfoms like the industry average, outperforming 54.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 5.63 |
ROIC/WACC1.28
WACC10.21%
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 63.54% of its industry peers.
A Quick Ratio of 1.35 indicates that RDY should not have too much problems paying its short term obligations.
RDY has a worse Quick ratio (1.35) than 67.71% 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
RDY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.21%, which is quite good.
Measured over the past years, RDY shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.62% on average per year.
RDY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.04%.
The Revenue has been growing by 13.26% on average over the past years. This is quite good.
EPS 1Y (TTM)8.21%
EPS 3Y33.55%
EPS 5Y23.62%
EPS Q2Q%7.44%
Revenue 1Y (TTM)14.04%
Revenue growth 3Y14.86%
Revenue growth 5Y13.26%
Sales Q2Q%9.83%
3.2 Future
The Earnings Per Share is expected to decrease by -0.91% on average over the next years.
RDY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.24% yearly.
EPS Next Y-5.63%
EPS Next 2Y-8.15%
EPS Next 3Y-0.91%
EPS Next 5YN/A
Revenue Next Year5.28%
Revenue Next 2Y3.93%
Revenue Next 3Y5.85%
Revenue Next 5Y6.24%
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
With a Price/Earnings ratio of 18.02, RDY is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of RDY indicates a rather cheap valuation: RDY is cheaper than 83.33% of the companies listed in the same industry.
RDY is valuated rather cheaply when we compare the Price/Earnings ratio to 25.51, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 21.75, 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 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.98, RDY is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.02 | ||
| Fwd PE | 21.75 |
4.2 Price Multiples
RDY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RDY is cheaper than 85.42% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RDY is valued a bit cheaper than 76.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.1 | ||
| EV/EBITDA | 11.05 |
4.3 Compensation for Growth
RDY has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.76
EPS Next 2Y-8.15%
EPS Next 3Y-0.91%
5. Dividend
5.1 Amount
With a yearly dividend of 0.65%, RDY is not a good candidate for dividend investing.
RDY's Dividend Yield is rather good when compared to the industry average which is at 7.07. RDY pays more dividend than 90.10% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, RDY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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
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-8.15%
EPS Next 3Y-0.91%
NYSE:RDY (11/19/2025, 2:09:12 PM)
14.055
+0.04 (+0.25%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners50.91%
Inst Owner Change-1.55%
Ins Owners21.86%
Ins Owner ChangeN/A
Market Cap11.70B
Revenue(TTM)343.10B
Net Income(TTM)57.72B
Analysts57.33
Price Target15.04 (7.01%)
Short Float %1.45%
Short Ratio7.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
Yearly Dividend0.09
Dividend Growth(5Y)-19.44%
DP11.54%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)-0.54%
PT rev (3m)0.33%
EPS NQ rev (1m)-3.06%
EPS NQ rev (3m)-3.06%
EPS NY rev (1m)-4.01%
EPS NY rev (3m)-12.16%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)-0.24%
Revenue NY rev (1m)-0.97%
Revenue NY rev (3m)-1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.02 | ||
| Fwd PE | 21.75 | ||
| P/S | 3.02 | ||
| P/FCF | 56.1 | ||
| P/OCF | 17.62 | ||
| P/B | 2.88 | ||
| P/tB | 4.23 | ||
| EV/EBITDA | 11.05 |
EPS(TTM)0.78
EY5.55%
EPS(NY)0.65
Fwd EY4.6%
FCF(TTM)0.25
FCFY1.78%
OCF(TTM)0.8
OCFY5.68%
SpS4.65
BVpS4.88
TBVpS3.33
PEG (NY)N/A
PEG (5Y)0.76
Graham Number9.26
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 | 5.63 |
F-Score4
WACC10.21%
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)8.21%
EPS 3Y33.55%
EPS 5Y23.62%
EPS Q2Q%7.44%
EPS Next Y-5.63%
EPS Next 2Y-8.15%
EPS Next 3Y-0.91%
EPS Next 5YN/A
Revenue 1Y (TTM)14.04%
Revenue growth 3Y14.86%
Revenue growth 5Y13.26%
Sales Q2Q%9.83%
Revenue Next Year5.28%
Revenue Next 2Y3.93%
Revenue Next 3Y5.85%
Revenue Next 5Y6.24%
EBIT growth 1Y1.53%
EBIT growth 3Y25.68%
EBIT growth 5Y18.58%
EBIT Next Year18.8%
EBIT Next 3Y6.2%
EBIT Next 5Y8.93%
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.
Can you provide the valuation status for DR. REDDY'S LABORATORIES-ADR?
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 PE and PB ratios for RDY stock?
The Price/Earnings (PE) ratio for DR. REDDY'S LABORATORIES-ADR (RDY) is 18.02 and the Price/Book (PB) ratio is 2.88.
How financially healthy is DR. REDDY'S LABORATORIES-ADR?
The financial health rating of DR. REDDY'S LABORATORIES-ADR (RDY) is 6 / 10.