Dr. Reddy's Laboratories Limited (RDY) is a publicly traded company in the Healthcare — Drug Manufacturers - Specialty & Generic industry listed on NYSE. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
Dr. Reddy's Laboratories Limited, alongside its associated companies, functions as a holistic pharmaceutical entity with a global footprint. Its business operations are divided into several key divisions. The Global Generics segment is responsible for the manufacturing and sale of both prescription and over-the-counter finished pharmaceutical products.
Is Dr. Reddy's Laboratories Limited stock overvalued or undervalued in 2026?
Dr. Reddy's Laboratories Limited (RDY) trades at 40.2× earnings (P/E), above the median of the 246 healthcare companies over $2bn in Kaplio's universe. At the decade median (23.2×) $8 (-42 %); at its sector median (30.4×) $11 (-24 %).
Kaplio overview: Dr. Reddy's Laboratories Limited
Market cap $12B · 52 weeks $11 – $15 (7 % below the high) · P/E 40.2× · 2027 expected P/E 30.8× · Dividend 0.59 % · 4 years rising · Next earnings January 22, 2027 · expected EPS $0.15 · Closing price, Oct 30 · accounts published Oct 23.
- Valuation: P/E 40.2× (expensive).
- Business: ROIC 5 % (weak).
- Balance sheet: Net debt/EBITDA 0.7× (solid).
- Earnings: 5 of 8 (uneven).
What would it be worth at its usual multiples?
At the decade median (23.2×) $8 (-42 %); at its sector median (30.4×) $11 (-24 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
What matters in pharma: 2 of 7 pass
- R&D / Revenue 7.2 %, fails.
- Gross margin 52.8 %, fails.
- FCF / Net Income 71.2 %, fails.
- ROIC 4.8 %, fails.
- P/E vs own 10y history 40.2×, fails.
- 5y EPS growth 186.6 %, passes.
- Net debt / EBITDA 0.7×, passes.
Against its peers (reference peers) — Dr. Reddy's Laboratories Limited: P/E 40.2×; EV/EBITDA 19.9×; ROIC 4.8 %; $11.8B. Amneal Pharmaceuticals, Inc. (P/E 44.1×; EV/EBITDA 14.5×; ROIC 13.4 %; $6.9B), Viatris Inc. (P/E —; EV/EBITDA 12.7×; ROIC -0.2 %; $21.9B), Haleon plc (P/E 14.8×; EV/EBITDA 12.1×; ROIC 6.5 %; $38.1B).
Expensive or cheap against its last ten years?
P/E at each close: today 40.2× · median 23.2× · minimum 7.8× · maximum 55.9× · cheap below 19.9× · expensive above 32.9×. It has been cheaper than today 95% of the time over its last ten years.
Dividend
solid · Yield 0.59 % ($0.09 per ADS in 2026) · Years raising it 4 · 5-year growth +11 % a year · Free cash flow coverage 3.1× · With $1,000 invested today you'd collect $5.90 a year ($0.49 a month).
Investor methods verdict
Would Buffett approve Dr. Reddy's Laboratories today?
The Buffett Method would wait for a better price for Dr. Reddy's Laboratories: it yields 5.9% before tax; it asks for 10%. Business quality: 75 out of 100 (price not included). Kaplio assessment with data from the week of 2026-10-26; not investment advice.
Would Peter Lynch approve Dr. Reddy's Laboratories today?
The Lynch Method would wait for a better price for Dr. Reddy's Laboratories. Business quality: 82 out of 100 (price not included). Lynch classifies it as a stalwart. Kaplio assessment with data from the week of 2026-10-26; not investment advice.
Profitability
| Return on Equity | 7.37% |
| Return on Invested Capital | 4.83% |
| Return on Assets | 4.87% |
| Gross Margin | 49.49% |
| Operating Margin | 8.98% |
| Net Margin | 8.48% |
Financial Health
| Debt / Equity | 0.19 |
| Current Ratio | 1.93 |
| Piotroski F-Score | 5 |
| Altman Z-Score | 5.35 |
Price Performance
| 1 month | +15.67% |
| 3 months | +17.40% |
| Year-to-date | +0.93% |
| 1 year | +6.62% |
| 3 years | +9.76% |
| 5 years | +11.75% |
| 10 years | +52.20% |
Dividend History
Paid in the last 12 months: $0.0834 per share in 1 payments.
| Date | Amount |
|---|---|
| 2026-07-24 | $0.0834 |
| 2025-07-25 | $0.0915 |
| 2024-07-30 | $0.0808 |
| 2023-07-28 | $0.0965 |
| 2023-07-07 | $0.0976 |
| 2022-08-01 | $0.0757 |
| 2022-07-08 | $0.0774 |
| 2021-07-09 | $0.0673 |
| 2020-07-10 | $0.0667 |
| 2019-07-12 | $0.0564 |
Amounts adjusted for stock splits.
Related companies: TEVA · VTRS · AMRX · HLN · BHC
Explore sector: Healthcare · Drug Manufacturers - Specialty & Generic
More sections of RDY: Financials · Valuation · Statistics · Estimates · Technical · Ownership · News · Events
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