# Dr. Reddy's Laboratories Ltd (RDY) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Healthcare / Pharmaceuticals. Price $11.97, market value $10.0 billion.

## Valuation
- **P/E (trailing): 28.5×** (5-yr avg 10.4×, 3-yr avg 6.8×). Dr. Reddy's Laboratories Ltd trades at 28.5× trailing earnings, well above its own five-year average of 10.4×: investors are paying up relative to the company's past. The Healthcare median in the September 2026 study was 28.5×. Forward P/E is 18.2×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.00**. A PEG of 0.00 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.0×**. Each dollar of revenue is priced at 0.0×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 0.0×**. The shares trade below book value, which can signal a bargain or a balance sheet the market doubts.
- **Free-cash-flow yield: 92.5%** (5-yr avg 34.6%). Free cash flow equals 92.5% of the market value, above its five-year average of 34.6%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 3.5%**. The inverse of the P/E: 3.5% of the price is earned each year.

## Profitability
- **Gross margin: 53.0%**. Dr. Reddy's Laboratories Ltd keeps 53.0% of revenue after the direct cost of what it sells.
- **Operating margin: 10.9%**. 10.9% of revenue is left after running the business.
- **Net margin: 12.8%**. 12.8% of each dollar of sales reaches the bottom line.
- **Return on equity: 11.4%**. 11.4% on shareholders' equity is solid.
- **Return on invested capital: 7.8%**. Return on all capital, debt included, is 7.8%.
- **Return on assets: 5.7%**. Each dollar of assets produces 5.7% of profit.

## Growth
- **Free-cash-flow growth (3 yr): 216.5%/yr**. Free cash flow has compounded at 216.5% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.21**. Debt is 0.21 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Dr. Reddy's Laboratories Ltd holds more cash than debt.
- **Interest coverage: 8.7×**. Operating profit covers interest 8.7× over, a safe margin.
- **Current ratio: 1.80** (quick 1.35). Current assets cover the next year's liabilities 1.80 times.
- **Altman Z-score: 2.09**. A Z-score of 2.09 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 3/9**. 3 of 9 checks pass: weak or deteriorating financials.

## Dividends
- **Dividend yield: 0.70%** ($0.08 per share, trailing). Dr. Reddy's Laboratories Ltd yields 0.70%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 16%**. 16% of earnings goes out as dividends, leaving room to keep raising it.
- **Dividend growth (5 yr): 6.6%/yr** (1-yr -5.0%). The dividend has grown 6.6% a year over five years.
- **Shareholder yield: -3.8%**. Dividends plus net buybacks return -3.8% of the market value a year.

## Analyst view
- **Analyst consensus: hold** (5 analysts). 5 analysts cover Dr. Reddy's Laboratories Ltd; the consensus is hold, with an average price target of $13.55 (+13% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -14.8%** (YTD -14.1%, 3-mo -9.0%). The shares are down 14.8% over twelve months including dividends.
- **From 52-week high: -23.6%** (5.4% above the low). Trading 24% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 39**. An RSI of 39 is neutral.
- **Beta (1 yr): 0.22** (volatility 27%). Beta of 0.22 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=RDY · Page: https://foliofundamentals.com/stocks/rdy

Not investment advice.