RDY Stock Analysis: Dr. Reddy’s Laboratories | NYSE
Drug Manufacturers - Specialty & Generic | NYSE, USA | Market Cap: 9.826m USD | 12M Return: -19.1% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 36.9M
EPS Trend: -61.9%
Qual. Beats: 0
Rev. Trend: 86.5%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Dr. Reddys Laboratories Limited is an integrated pharmaceutical company headquartered in Hyderabad, India, founded in 1984. It trades on the NYSE under the ticker RDY as an American Depositary Receipt (ADR), a structure that enables Indian-domiciled firms to list and trade on U.S. exchanges. The company operates across North America, Europe, India, Russia, and other international markets.
Its business is organized into three segments. The Global Generics segment manufactures and markets prescription and over-the-counter finished pharmaceutical products, including generics with therapeutic equivalence to branded formulations, and also operates a biologics business. The Pharmaceutical Services and Active Ingredients (PSAI) segment produces APIs and intermediates - the principal ingredients used in finished drugs - and offers contract research services as well as custom manufacturing of APIs and steroids. A third, smaller segment focuses on developing therapies in oncology and inflammation and on differentiated formulations research and commercialization.
Dr. Reddys products span a broad range of therapeutic categories, including gastro-intestinal, cardiovascular, anti-diabetic, dermatology, oncology, respiratory, urology, nephrology, vaccines, pain management, and vitamins and minerals. As a major player in the global generics industry, the company is well-positioned to benefit from patent cliffs on originator drugs, while its in-house API manufacturing provides vertical integration that is a common competitive advantage among large Indian pharmaceutical firms.
- US generic pricing pressure weighs on Global Generics margins
- Russia revenue exposure fluctuates with ruble volatility and sanctions
- USFDA inspection outcomes at key manufacturing facilities impact compliance
| Net Income: 33.1b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA -0.15 > 1.0 |
| NWC/Revenue: 42.72% < 20% (prev 38.09%; Δ 4.64% < -1%) |
| CFO/TA 0.07 > 3% & CFO 41.0b > Net Income 33.1b |
| Net Debt (78.9b) to EBITDA (56.5b): 1.40 < 3 |
| Current Ratio: 1.90 > 1.5 & < 3 |
| Outstanding Shares: last quarter (833.0m) vs 12m ago -0.00% < -2% |
| Gross Margin: 50.16% > 18% (prev 57.65%; Δ -7.50% > 0.5%) |
| Asset Turnover: 60.71% > 50% (prev 64.34%; Δ -3.63% > 0%) |
| Interest Coverage Ratio: 8.42 > 6 (EBIT TTM 35.3b / Interest Expense TTM 4.19b) |
| A: 0.25 (Total Current Assets 299b - Total Current Liabilities 157b) / Total Assets 575b |
| B: 0.62 (Retained Earnings 356b / Total Assets 575b) |
| C: 0.06 (EBIT TTM 35.3b / Avg Total Assets 547b) |
| D: 2.03 (Book Value of Equity 383b / Total Liabilities 189b) |
| Altman-Z'' = 6.21 = AAA |
| DSRI: 0.88 (Receivables 101b/115b, Revenue 332b/334b) |
| GMI: 1.15 (GM 57.65% / 50.16%) |
| AQI: 0.99 (AQ_t 0.28 / AQ_t-1 0.28) |
| SGI: 0.99 (Revenue 332b / 334b) |
| TATA: -0.01 (NI 33.1b - CFO 41.0b) / TA 575b) |
| Beneish M = -3.01 (Cap -4..+1) = AA |
As of July 29, 2026, the stock is trading at USD 11.77 with a total of 3,620,643 shares traded. Over the past week, the price has changed by -5.55%, over one month by -20.00%, over three months by -14.90% and over the past year by -19.13%.
Current recommended Stop Loss: 11.20 (which is 4.8% or 1.4 ATR below the current price).
Dr. Reddy’s Laboratories has received a consensus analysts rating of 3.50. Therefore, it is recommended to hold RDY.
- StrongBuy: 2
- Buy: 0
- Hold: 1
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 14.1 | 20.1% |
Market Cap INR = 949b (9.83b USD * 96.5675 USD.INR)
P/E Trailing = 27.4419
P/E Forward = 21.5054
P/S = 0.0297
P/B = 2.3848
P/EG = 1.388
Revenue TTM = 332b INR
EBIT TTM = 35.3b INR
EBITDA TTM = 56.5b INR
Long Term Debt = 12.2b INR (from longTermDebt, last fiscal year)
Short Term Debt = 57.7b INR (from shortLongTermDebt, last quarter)
Debt = 90.1b INR (from shortLongTermDebtTotal, last fiscal year) + Leases 14.3b
Net Debt = 78.9b INR (calculated: Debt 90.1b - CCE 11.2b)
Enterprise Value = 1028b INR (949b + Debt 90.1b - CCE 11.2b)
Interest Coverage Ratio = 8.42 (Ebit TTM 35.3b / Interest Expense TTM 4.19b)
EV/FCF = 67.86x (Enterprise Value 1028b / FCF TTM 15.1b)
FCF Yield = 1.47% (FCF TTM 15.1b / Enterprise Value 1028b)
FCF Margin = 4.56% (FCF TTM 15.1b / Revenue TTM 332b)
Net Margin = 9.97% (Net Income TTM 33.1b / Revenue TTM 332b)
Gross Margin = 50.16% ((Revenue TTM 332b - Cost of Revenue TTM 166b) / Revenue TTM)
Gross Margin QoQ = 46.52% (prev 44.82%)
Tobins Q-Ratio = 1.79 (Enterprise Value 1028b / Total Assets 575b)
Interest Expense / Debt = 4.65% (Interest Expense 4.19b / Debt 90.1b)
Taxrate = 20.76% (8.58b / 41.3b)
NOPAT = 27.9b (EBIT 35.3b * (1 - 20.76%))
Current Ratio = 1.90 (Total Current Assets 299b / Total Current Liabilities 157b)
Debt / Equity = 0.23 (Debt 90.1b / totalStockholderEquity, last quarter 383b)
Debt / EBITDA = 1.40 (Net Debt 78.9b / EBITDA 56.5b)
Debt / FCF = 5.21 (Net Debt 78.9b / FCF TTM 15.1b)
Total Stockholder Equity = 371b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.05% (Net Income 33.1b / Total Assets 575b)
RoE = 8.93% (Net Income TTM 33.1b / Total Stockholder Equity 371b)
RoCE = 9.20% (EBIT 35.3b / Capital Employed (Equity 371b + L.T.Debt 12.2b))
RoIC = 5.94% (NOPAT 27.9b / Invested Capital 471b)
WACC = 5.88% (E(949b)/V(1039b) * Re(6.09%) + D(90.1b)/V(1039b) * Rd(4.65%) * (1-Tc(0.21)))
Discount Rate = 6.09% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 52.18 | Cagr: 104.6%
[DCF] Terminal Value 76.06% ; FCFF base≈14.9b ; Y1≈15.5b ; Y5≈17.8b
[DCF] Fair Price = 235.3 (EV 275b - Net Debt 78.9b = Equity 196b / Shares 832.7m; r=8.35% [WACC [floored]]; 5y FCF grow 4.89% → 2.50% )
EPS Correlation: -61.90 | EPS CAGR: -63.27% | SUE: -0.01 | # QB: 0
Revenue Correlation: 86.54 | Revenue CAGR: 39.16% | SUE: -0.01 | # QB: 0
EPS current Quarter (2026-09-30): EPS=0.00 | Chg30d=N/A | Revisions=N/A | Analysts=0
EPS current Year (2027-03-31): EPS=51.04 | Chg30d=N/A | Revisions=-25% | GrowthEPS=-7.8% | GrowthRev=+6.0%
EPS next Year (2028-03-31): EPS=63.32 | Chg30d=N/A | Revisions=-25% | GrowthEPS=+24.1% | GrowthRev=+10.9%