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

USA • New York Stock Exchange • NYSE:RDY • US2561352038

14.04 USD
-0.14 (-0.99%)
At close: Feb 10, 2026
14.04 USD
0 (0%)
After Hours: 2/10/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

Overall RDY gets a fundamental rating of 6 out of 10. We evaluated RDY against 191 industry peers in the Pharmaceuticals industry. RDY scores excellent on profitability, but there are some minor concerns on its financial health. RDY has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year RDY was profitable.
  • In the past year RDY had a positive cash flow from operations.
  • 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

  • RDY has a better Return On Assets (10.62%) than 91.62% 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 88.48% of the companies in the same industry.
  • The Return On Invested Capital of RDY (13.03%) is better than 91.62% 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 12.66%.
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

  • RDY's Profit Margin of 16.82% is amongst the best of the industry. RDY outperforms 89.01% of its industry peers.
  • RDY's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 19.62%, RDY belongs to the best of the industry, outperforming 86.91% of the companies in the same industry.
  • 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 75.92% of the companies in the same industry.
  • 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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

6

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.
  • The number of shares outstanding for RDY has been increased compared to 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

  • An Altman-Z score of 5.75 indicates that RDY is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 5.75, RDY is doing good in the industry, outperforming 76.44% of the companies in the same industry.
  • 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.
  • With an excellent Debt to FCF ratio value of 3.17, RDY belongs to the best of the industry, outperforming 89.53% 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.
  • Looking at the Debt to Equity ratio, with a value of 0.03, RDY is in line with its industry, outperforming 53.93% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.03
Debt/FCF 3.17
Altman-Z 5.75
ROIC/WACC1.27
WACC10.22%
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.
  • The Current ratio of RDY (1.85) is worse than 64.40% 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 Quick ratio of 1.35. This is in the lower half of the industry: RDY underperforms 67.54% 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 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

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • RDY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.81%.
  • The Earnings Per Share has been growing by 23.62% on average over the past years. This is a very strong growth
  • The Revenue has grown by 11.06% in the past year. This is quite good.
  • 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 6.63% 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 Year5.1%
Revenue Next 2Y3.83%
Revenue Next 3Y5.5%
Revenue Next 5Y6.63%

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

More info and screens

Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 18.97, RDY is valued on the expensive side.
  • 82.72% of the companies in the same industry are more expensive than RDY, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 28.03. RDY is valued slightly cheaper when compared to this.
  • RDY is valuated rather expensively with a Price/Forward Earnings ratio of 22.27.
  • Based on the Price/Forward Earnings ratio, RDY is valued a bit cheaper than 76.96% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.97, RDY is valued a bit cheaper.
Industry RankSector Rank
PE 18.97
Fwd PE 22.27
RDY Price Earnings VS Forward Price EarningsRDY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • RDY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RDY is cheaper than 86.91% of the companies in the same industry.
  • 77.49% of the companies in the same industry are more expensive than RDY, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 57.41
EV/EBITDA 11.48
RDY Per share dataRDY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4

4.3 Compensation for Growth

  • RDY has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.8
EPS Next 2Y-8.18%
EPS Next 3Y-1.42%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. Dividend

5.1 Amount

  • With a yearly dividend of 0.64%, RDY is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.93, RDY pays a better dividend. On top of this RDY pays more dividend than 89.01% of the companies listed in the same industry.
  • With a Dividend Yield of 0.64, RDY pays less dividend than the S&P500 average, which is at 1.80.
Industry RankSector Rank
Dividend Yield 0.64%

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-8.18%
EPS Next 3Y-1.42%
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

More info and screens

Find the best dividend stocksShow peers with best dividend

DR. REDDY'S LABORATORIES-ADR

NYSE:RDY (2/10/2026, 8:04:00 PM)

After market: 14.04 0 (0%)

14.04

-0.14 (-0.99%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)01-21
Earnings (Next)05-07
Inst Owners49.42%
Inst Owner Change0.55%
Ins Owners1.23%
Ins Owner ChangeN/A
Market Cap11.69B
Revenue(TTM)346.82B
Net Income(TTM)57.72B
Analysts56.89
Price Target15.63 (11.32%)
Short Float %2.15%
Short Ratio9.26
Dividend
Industry RankSector Rank
Dividend Yield 0.64%
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)4.76%
PT rev (3m)2.49%
EPS NQ rev (1m)-3.66%
EPS NQ rev (3m)-3.66%
EPS NY rev (1m)-0.19%
EPS NY rev (3m)-0.74%
Revenue NQ rev (1m)-1.38%
Revenue NQ rev (3m)-1.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.17%
Valuation
Industry RankSector Rank
PE 18.97
Fwd PE 22.27
P/S 3.09
P/FCF 57.41
P/OCF 18.03
P/B 2.94
P/tB 4.33
EV/EBITDA 11.48
EPS(TTM)0.74
EY5.27%
EPS(NY)0.63
Fwd EY4.49%
FCF(TTM)0.24
FCFY1.74%
OCF(TTM)0.78
OCFY5.55%
SpS4.54
BVpS4.77
TBVpS3.25
PEG (NY)N/A
PEG (5Y)0.8
Graham Number8.91
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 5.75
F-Score4
WACC10.22%
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 Year5.1%
Revenue Next 2Y3.83%
Revenue Next 3Y5.5%
Revenue Next 5Y6.63%
EBIT growth 1Y1.53%
EBIT growth 3Y25.68%
EBIT growth 5Y18.58%
EBIT Next Year13.87%
EBIT Next 3Y6.33%
EBIT Next 5Y9.32%
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%.