Dr. Reddy's Laboratories Limited (RDY) Valuation — DCF, Graham & Comparables

Dr. Reddy's Laboratories Limited (RDY) — Price $12.32 — Healthcare — Drug Manufacturers - Specialty & Generic — NYSE

Latest reported results:

Valuation dashboard for Dr. Reddy's Laboratories Limited (RDY) with P/E 30.37, P/B 2.62, EV/EBITDA 13.66 and dividend yield 0.66%. DCF, Graham Number, EPS growth, peer multiples and dividend discount models plus sector comparison against other Healthcare companies.

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.

Analysis Summary

Dr. Reddy's Laboratories Limited reported revenue of 353.47B INR in the most recent fiscal year, growing at a 5-year CAGR of 168.0%. Net income reached 45.09B INR, with a 186.8% 5-year CAGR.

Trailing-twelve-month margins: gross margin 50.2%, operating margin 10.6%, net margin 10.0%.

At the current price of $12.32, RDY trades at a P/E of 30.37 and an ROE of 12.20%. Market capitalisation stands at $10.3B, placing it among large-cap names.

Balance sheet quality for RDY: current ratio of 1.8. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.

Valuation Ratios

P/E Ratio30.37
Price / Book2.62
EV / EBITDA13.66
Dividend Yield0.66%

Valuation Models

DCF Fair Value$12.66
vs Current Price+2.7%

Peer Comparison

SymbolCompanyMarket CapP/EP/BROE
RDYDr. Reddy's Laboratories Limited$10.2B30.372.6212.2%
RVMDRevolution Medicines, Inc.$43.9B16.72-69.3%
NBIXNeurocrine Biosciences, Inc.$14.3B20.313.9221.1%
EXELExelixis, Inc.$14.9B17.757.9442.5%
ENSGThe Ensign Group, Inc.$10.0B26.924.0816.5%
BMRNBioMarin Pharmaceutical Inc.$11.1B150.471.75
ELANElanco Animal Health Incorporated$11.2B1.68-3.0%
EHCEncompass Health Corporation$11.9B19.264.5625.0%

Price

Price$12.32
Market Cap$10.3B
ExchangeNYSE
CountryIN

Profitability

Return on Equity12.20%
Return on Invested Capital8.10%
Return on Assets7.94%
Gross Margin50.18%
Operating Margin10.64%
Net Margin10.00%

Related companies: BMRN · EHC · ELAN · ENSG · EXEL · NBIX · RVMD

Explore sector: Healthcare · Drug Manufacturers - Specialty & Generic

More sections of RDY: Overview · Financials · Statistics · Estimates · Technical · Ownership · News · Events

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