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

NYSE:RDY • US2561352038

Current stock price

13.48 USD
-0.29 (-2.11%)
At close:
13.48 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.

8

1. RDY Profitability Analysis

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.
  • 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

  • With an excellent Return On Assets value of 10.62%, RDY belongs to the best of the industry, outperforming 92.23% of the companies in the same industry.
  • RDY has a Return On Equity of 16.03%. This is amongst the best in the industry. RDY outperforms 89.12% of its industry peers.
  • 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.
  • Measured over the past 3 years, the Average Return On Invested Capital for RDY is above the industry average of 13.06%.
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 89.12% of its industry peers.
  • In the last couple of years the Profit Margin of RDY has grown nicely.
  • The Operating Margin of RDY (19.62%) is better than 87.56% of its industry peers.
  • RDY's Operating Margin has improved in the last couple of years.
  • The Gross Margin of RDY (66.88%) is better than 76.17% 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

  • 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.
  • Compared to 1 year ago, RDY has a worse debt to assets ratio.
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 5.77. This indicates that RDY is financially healthy and has little risk of bankruptcy at the moment.
  • RDY has a better Altman-Z score (5.77) than 79.79% of its industry peers.
  • The Debt to FCF ratio of RDY is 3.17, which is a good value as it means it would take RDY, 3.17 years of fcf income to pay off all of its debts.
  • RDY has a Debt to FCF ratio of 3.17. This is amongst the best in the industry. RDY outperforms 90.16% of its industry peers.
  • 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 RankSector Rank
Debt/Equity 0.03
Debt/FCF 3.17
Altman-Z 5.77
ROIC/WACC1.28
WACC10.15%
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

  • RDY has a Current Ratio of 1.85. 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 Current ratio of 1.85. This is in the lower half of the industry: RDY underperforms 63.73% 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.
  • With a Quick ratio value of 1.35, RDY is not doing good in the industry: 66.84% of the companies in the same industry are doing better.
  • 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 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. RDY Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 3.81% over the past year.
  • 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%.
  • Measured over the past years, RDY shows a quite strong growth in Revenue. The Revenue has been growing by 13.26% on average per year.
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

  • The Earnings Per Share is expected to decrease by -1.22% on average over the next years.
  • 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.
  • 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.
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 18.99.
  • Compared to the rest of the industry, the Price/Earnings ratio of RDY indicates a rather cheap valuation: RDY is cheaper than 83.42% of the companies listed in the same industry.
  • RDY is valuated rather cheaply when we compare the Price/Earnings ratio to 24.88, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 22.47, RDY is valued on the expensive side.
  • RDY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RDY is cheaper than 77.20% 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 22.19.
Industry RankSector Rank
PE 18.99
Fwd PE 22.47
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 84.97% 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 76.17% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 57.19
EV/EBITDA 11.57
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)0.8
EPS Next 2Y-8.78%
EPS Next 3Y-1.22%

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4

5. RDY Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.63%, RDY is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.79, RDY pays a better dividend. On top of this RDY pays more dividend than 89.12% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.90, RDY's dividend is way lower than the S&P500 average.
Industry RankSector 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
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

  • RDY pays out 11.54% of its income as dividend. This is a 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 (3/27/2026, 6:40:00 PM)

After market: 13.48 0 (0%)

13.48

-0.29 (-2.11%)

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 Change0%
Market Cap11.22B
Revenue(TTM)346.82B
Net Income(TTM)57.72B
Analysts67.27
Price Target15.24 (13.06%)
Short Float %2.29%
Short Ratio7.12
Dividend
Industry RankSector 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 RankSector Rank
PE 18.99
Fwd PE 22.47
P/S 3.08
P/FCF 57.19
P/OCF 17.96
P/B 2.93
P/tB 4.31
EV/EBITDA 11.57
EPS(TTM)0.71
EY5.27%
EPS(NY)0.6
Fwd EY4.45%
FCF(TTM)0.24
FCFY1.75%
OCF(TTM)0.75
OCFY5.57%
SpS4.38
BVpS4.6
TBVpS3.13
PEG (NY)N/A
PEG (5Y)0.8
Graham Number8.57
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 5.77
F-Score4
WACC10.15%
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%.