Stock AnalizDR Reddys Laboratories Ltd. RDY
Biotechnology: Pharmaceutical Preparations · data as of November 13, 2026
DR Reddys Laboratories Ltd. (RDY) is a healthcare company listed in the US with a market value of about $12.3B. In the twelve months to September 30, 2026 it had revenue of $3.5B and net income of $297M, a net margin of 8.5%.
Its overall Stock Analiz score is 2.0 out of 5 (weak). The strongest part is track record (4/5); the weakest is value (0/5).
Key numbers: a P/E of 41.4, a price to free cash flow of 244.7, 5-year revenue growth of 10% a year, a 5-year average ROIC of 13%. A discounted cash flow model with moderate assumptions puts its intrinsic value about 67% below the current price.
Score: 2.0 / 5
Checks passed
- 3-year revenue growth above 10% a year
- 5-year EPS growth above 10% a year
- 5-year revenue growth above 8% a year
- 5-year average ROIC above 12%
- Profitable 5 years in a row
- More cash than debt, or low debt to equity
- Positive free cash flow
- Liabilities below 60% of assets
Checks not passed
- P/E below 25
- P/E below the industry median
- P/FCF below 20
- Price below intrinsic value (DCF, moderate assumptions)
- PEG below 1.5
- Revenue growth above 10% last year
- Profit margin improving
- 3-year free cash flow growth above 10% a year
Valuation
Growth and quality
Financials, last 10 years
| Fiscal year | TTM | 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $3.5B | $3.6B | $3.8B | $3.4B | $3.0B | $2.8B | $2.6B | $2.3B | $2.2B | $2.2B | $2.1B |
| Net income | $297M | $455M | $663M | $668M | $548M | $311M | $236M | $259M | $272M | $151M | — |
| Free cash flow | $50M | $194M | $223M | $348M | $578M | $177M | $355M | $332M | $314M | $134M | — |
| EPS (diluted) | $0.36 | $0.55 | $0.79 | $0.80 | $0.66 | $0.37 | $0.28 | $0.31 | $0.33 | $0.18 | — |
| Net margin | 8.5% | 12.8% | 17.4% | 19.9% | 18.3% | 11.0% | 9.1% | 11.2% | 12.2% | 6.9% | — |
| ROIC | — | — | 14.1% | 17.5% | 17.8% | 9.7% | 7.8% | 7.3% | 10.0% | 4.6% | — |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
Frequently asked questions
What is DR Reddys Laboratories’s P/E ratio?
About 41.4, based on the last twelve months of diluted earnings per share (forward P/E about 22.2).
Is DR Reddys Laboratories stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 67% below the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does DR Reddys Laboratories pay a dividend?
Yes. The dividend yield is about 0.57%, and it has paid dividends for 10 years in our data.
Is DR Reddys Laboratories a good stock to buy?
We do not give buy or sell advice. DR Reddys Laboratories scores 2.0 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
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Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.