Dr. Reddy's Laboratories (RDY) Stock Analysis
This is a peer-relative look at Dr. Reddy's Laboratories (RDY): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Pharmaceuticals, Biotechnology & Life Sciences peers, so every number reads in context rather than in isolation.
Company Profile
Dr. Reddy's Laboratories (RDY) trades as an ADR rather than ordinary local shares — read it with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.
| Profile Item | RDY |
|---|---|
| Name | Dr. Reddy's Laboratories Ltd. ADR |
| Country/Region | India |
| GICS Sector | Health Care |
| GICS Industry Group | Pharmaceuticals, Biotechnology & Life Sciences |
| GICS Industry | Pharmaceuticals |
| GICS Sub-Industry | Pharmaceuticals |
| Market Capitalization | 12.43 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | April 11, 2001 |
| Security Type | ADR |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: RDY | Industry group median |
|---|---|---|
| Total Return (1Y) | 12.49% | 24.62% |
| Total Return (3Y, Annualized) | 5.76% | 20.37% |
| Total Return (5Y, Annualized) | 4.06% | -4.02% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: RDY | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 27.06% | 66.36% |
| Beta (5Y) | 0.30 | 0.93 |
| Max Drawdown (5Y) | -32.01% | -80.19% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: RDY | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | 0.30 | 0.36 |
| Sortino Ratio (1Y) | 0.43 | 0.58 |
Profitability
ROE (TTM)
Dr. Reddy's Laboratories (RDY) posts ROE of 7.34%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.
RDY
Pharmaceuticals, Biotechnology & Life Sciences industry group
7.34%
Group distribution
- Max
- 109.18%
- RDY
- 7.34%
- Q3
- 6.23%
- Median
- -26.66%
- Q1
- -64.05%
- Min
- -167.77%
Largest peers
- LLY
- 86.02%
- NVS
- 24.33%
- AZN
- 22.57%
- JNJ
- 20.02%
- RDY
- 7.34%
- MRK
- 5.06%
- ABBV
- --
Net Margin (TTM)
Dr. Reddy's Laboratories (RDY) keeps 8.49% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.
RDY
Pharmaceuticals, Biotechnology & Life Sciences industry group
8.49%
Group distribution
- Max
- 18.05%
- RDY
- 8.49%
- Q3
- 4.78%
- Median
- 0.00%
- Q1
- -4.14%
- Min
- -17.05%
Largest peers
- LLY
- 31.90%
- AZN
- 17.68%
- NVS
- 17.49%
- JNJ
- 16.20%
- ABBV
- 15.67%
- RDY
- 8.49%
- MRK
- 3.64%
Operating Margin (TTM)
Dr. Reddy's Laboratories (RDY) turns 14.73% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.
RDY
Pharmaceuticals, Biotechnology & Life Sciences industry group
14.73%
Group distribution
- Max
- 83.12%
- Q3
- 14.77%
- RDY
- 14.73%
- Median
- 0.00%
- Q1
- -78.82%
- Min
- -207.40%
Largest peers
- LLY
- 53.66%
- ABBV
- 39.59%
- MRK
- 35.22%
- NVS
- 34.27%
- AZN
- 29.57%
- JNJ
- 25.74%
- RDY
- 14.73%
Profitability Metrics
| Metric | Current stock: RDY | Industry group median |
|---|---|---|
| ROE (TTM) | 7.34% | -26.66% |
| ROA (TTM) | 3.37% | -12.50% |
| Net Margin (TTM) | 8.49% | 0.00% |
| Operating Margin (TTM) | 14.73% | 0.00% |
| Gross Margin (TTM) | 49.49% | 37.87% |
Growth
Revenue Growth
Dr. Reddy's Laboratories (RDY) grew revenue 3.19%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.
EPS Growth
Dr. Reddy's Laboratories (RDY) grew earnings per share -24.14%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.
Growth Metrics
| Metric | Current stock: RDY | Industry group median |
|---|---|---|
| Revenue Growth (YoY) | 3.19% | 11.45% |
| Revenue Growth (3Y CAGR) | 10.96% | 9.94% |
| EPS Growth (YoY) | -24.14% | 4.28% |
| EPS Growth (3Y CAGR) | -1.72% | 4.17% |
Financial Strength
Current Ratio (MRQ)
Dr. Reddy's Laboratories (RDY) has current ratio of 1.93, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.
RDY
Pharmaceuticals, Biotechnology & Life Sciences industry group
1.93
Group distribution
- Max
- 25.13
- Q3
- 12.13
- Median
- 5.52
- Q1
- 2.47
- RDY
- 1.93
- Min
- 0.10
Largest peers
- RDY
- 1.93
- LLY
- 1.39
- MRK
- 1.35
- JNJ
- 1.02
- AZN
- 1.01
- NVS
- 0.88
- ABBV
- 0.87
Debt / Equity (MRQ)
Dr. Reddy's Laboratories (RDY) has debt-to-equity ratio of 0.19, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.
RDY
Pharmaceuticals, Biotechnology & Life Sciences industry group
0.19
Group distribution
- Max
- 1.42
- Q3
- 0.65
- RDY
- 0.19
- Median
- 0.15
- Q1
- 0.02
- Min
- 0.00
Largest peers
- NVS
- 1.29
- LLY
- 1.23
- MRK
- 1.20
- AZN
- 0.66
- JNJ
- 0.55
- RDY
- 0.19
- ABBV
- --
Financial Strength Metrics
| Metric | Current stock: RDY | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 1.93 | 5.52 |
| Debt / Equity (MRQ) | 0.19 | 0.15 |
| Net Debt / EBITDA | -0.08 | 1.08 |
Dividends
Dividend Yield (TTM)
Dr. Reddy's Laboratories (RDY) has dividend yield of 55.06%, above the entire industry range. That headline income is large, but yields this far above peers often come from a falling share price or an at-risk payout, so dividend safety matters more than the percentage itself.
RDY
Pharmaceuticals, Biotechnology & Life Sciences industry group
55.06%
Group distribution
- RDY
- 55.06%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- RDY
- 55.06%
- NVS
- 2.88%
- ABBV
- 2.40%
- MRK
- 2.29%
- JNJ
- 1.94%
- AZN
- 1.73%
- LLY
- 0.49%
Dividend Payout Ratio (TTM)
Dr. Reddy's Laboratories (RDY) has payout ratio of 22.72%, above the peer distribution for its industry. The dividend consumes more reported earnings than peers normally do, leaving unusually thin earnings cover.
RDY
Pharmaceuticals, Biotechnology & Life Sciences industry group
22.72%
Group distribution
- RDY
- 22.72%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- MRK
- 343.43%
- ABBV
- 117.35%
- NVS
- 90.46%
- JNJ
- 80.12%
- AZN
- 45.38%
- RDY
- 22.72%
- LLY
- 21.71%
Dividend Metrics
| Metric | Current stock: RDY | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 55.06% | 0.00% |
| Dividend Payout Ratio (TTM) | 22.72% | 0.00% |
Valuation
P/E Ratio (TTM)
Dr. Reddy's Laboratories (RDY) trades at P/E ratio of 41.42, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.
RDY
Pharmaceuticals, Biotechnology & Life Sciences industry group
41.42
Group distribution
- Max
- 85.34
- Q3
- 43.46
- RDY
- 41.42
- Median
- 26.69
- Q1
- 13.30
- Min
- 0.07
Largest peers
- MRK
- 148.21
- ABBV
- 50.05
- LLY
- 43.95
- JNJ
- 41.92
- RDY
- 41.42
- NVS
- 31.02
- AZN
- 26.37
P/S Ratio (TTM)
Dr. Reddy's Laboratories (RDY) trades at 0.04 on P/S ratio, in the lower sales-valuation quartile for its industry. That points to a cheaper revenue stream than most peers, with margin quality still doing the heavy lifting.
RDY
Pharmaceuticals, Biotechnology & Life Sciences industry group
0.04
Group distribution
- Max
- 58.18
- Q3
- 25.77
- Median
- 7.30
- Q1
- 3.01
- RDY
- 0.04
- Min
- 0.01
Largest peers
- LLY
- 13.95
- ABBV
- 7.80
- JNJ
- 6.69
- MRK
- 5.37
- NVS
- 5.35
- AZN
- 4.63
- RDY
- 0.04
P/B Ratio (MRQ)
Dr. Reddy's Laboratories (RDY) trades at 18.16 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.
RDY
Pharmaceuticals, Biotechnology & Life Sciences industry group
18.16
Group distribution
- RDY
- 18.16
- Max
- 13.53
- Q3
- 6.54
- Median
- 3.25
- Q1
- 1.69
- Min
- -5.59
Largest peers
- LLY
- 29.96
- RDY
- 18.16
- NVS
- 8.25
- JNJ
- 8.16
- MRK
- 8.06
- AZN
- 5.59
- ABBV
- -112.34
Valuation Metrics
| Metric | Current stock: RDY | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 41.42 | 26.69 |
| P/S Ratio (TTM) | 0.04 | 7.30 |
| P/B Ratio (MRQ) | 18.16 | 3.25 |
| Free Cash Flow Yield (TTM) | -53.03% | -1.66% |