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

  • RDY had positive earnings in the past year.
  • RDY had a positive operating cash flow in the past year.
  • Each year in the past 5 years RDY has 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 has a better Return On Assets (10.62%) than 92.23% of its industry peers.
  • The Return On Equity of RDY (16.03%) is better than 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.
  • RDY had an Average Return On Invested Capital over the past 3 years of 15.26%. This 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

  • RDY's Profit Margin of 16.82% is amongst the best of the industry. RDY outperforms 89.12% of its industry peers.
  • RDY's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 19.62%, RDY belongs to the top of the industry, outperforming 87.56% of the companies in the same industry.
  • In the last couple of years the Operating Margin of RDY has grown nicely.
  • RDY has a better Gross Margin (66.88%) than 76.17% of its industry peers.
  • RDY's Gross Margin has been stable in the last couple of years.
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. 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.
  • The number of shares outstanding for RDY remains at a similar level compared to 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.
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 5.73 indicates that RDY is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 5.73, RDY is doing good in the industry, outperforming 79.79% 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.
  • The Debt to FCF ratio of RDY (3.17) is better than 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 5.73
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 worse Current ratio (1.85) than 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.
  • RDY's Quick ratio of 1.35 is on the low side compared to the rest of the industry. RDY is outperformed by 66.84% 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. 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%.
  • The Earnings Per Share has been growing by 23.62% on average over the past years. This is a very strong growth
  • Looking at the last year, RDY shows a quite strong growth in Revenue. The Revenue has grown by 11.06% in the last year.
  • The Revenue has been growing by 13.26% on average over the past years. This is quite good.
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

  • Based on estimates for the next years, RDY will show a decrease in Earnings Per Share. The EPS will decrease by -1.22% on average per year.
  • The Revenue is expected to grow by 6.56% on average over the next years.
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.
  • 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

More info and screens

Find the best growth stocksShow best growing peers

5

4. RDY Valuation Analysis

4.1 Price/Earnings Ratio

  • RDY is valuated rather expensively with a Price/Earnings ratio of 18.99.
  • 83.42% of the companies in the same industry are more expensive than RDY, based on the Price/Earnings ratio.
  • RDY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.88.
  • A Price/Forward Earnings ratio of 22.64 indicates a rather expensive valuation of RDY.
  • Based on the Price/Forward Earnings ratio, RDY is valued a bit cheaper than the industry average as 77.20% of the companies are valued more expensively.
  • 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 22.64
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

  • 84.97% of the companies in the same industry are more expensive than RDY, based on the Enterprise Value to EBITDA ratio.
  • RDY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RDY is cheaper than 76.17% of the companies in the same industry.
Industry RankSector Rank
P/FCF 57.61
EV/EBITDA 11.4
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-8.78%
EPS Next 3Y-1.22%

More info and screens

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

4

5. RDY Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.61%, RDY is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.70, 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 1.89, 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 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
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.
  • RDY's earnings and Dividend Rate are 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

More info and screens

Find the best dividend stocksShow peers with best dividend

RDY Fundamentals: All Metrics, Ratios and Statistics

DR. REDDY'S LABORATORIES-ADR

NYSE:RDY (3/27/2026, 8:04:00 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 0.61%
Yearly Dividend0.08
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)0%
PT rev (3m)2.13%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-3.66%
EPS NY rev (1m)-0.75%
EPS NY rev (3m)-0.94%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)-1.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.31%
Valuation
Industry RankSector Rank
PE 18.99
Fwd PE 22.64
P/S 3.1
P/FCF 57.61
P/OCF 18.09
P/B 2.95
P/tB 4.34
EV/EBITDA 11.4
EPS(TTM)0.71
EY5.27%
EPS(NY)0.6
Fwd EY4.42%
FCF(TTM)0.23
FCFY1.74%
OCF(TTM)0.75
OCFY5.53%
SpS4.35
BVpS4.56
TBVpS3.11
PEG (NY)N/A
PEG (5Y)0.8
Graham Number8.54
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 5.73
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%.