Dr. Reddy's Laboratories Limited (RDY) Financial Ratios
25 years of historical data (2001–2025) · Healthcare · Drug Manufacturers - Specialty & Generic
EV/EBITDA
↓
12.31
↑+224% vs avg
5yr avg: 3.80
30Y Low0.0·High17.3
P/FCF
↑
88.28
↑+13292% vs avg
5yr avg: 0.66
30Y Low0.2·High2.4
P/B Ratio
↓
3.16
↑+252% vs avg
5yr avg: 0.90
30Y Low0.0·High4.3
ROE
↑
18.3%
-5% vs avg
5yr avg: 19.3%
30Y Low-12%·High48%
Debt/EBITDA
↓
0.53
+7% vs avg
5yr avg: 0.49
30Y Low0.0·High20.1
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
RDY Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Dr. Reddy's Laboratories Limited trades at 18.8x earnings, 5744% above its 5-year average of 0.3x, sitting at the 100th percentile of its historical range. Compared to the Healthcare sector median P/E of 22.3x, the stock trades at a discount of 16%. On a free-cash-flow basis, the stock trades at 88.3x P/FCF, 13292% above the 5-year average of 0.7x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $11.2B | $11.0B | $12.2B | $9.5B | $9.3B | $10.2B | $6.7B | $6.7B | $5.4B | $6.7B | $7.7B |
| Enterprise Value | $11.5B | $43.1B | $25.1B | $17.2B | $28.3B | $10.4B | $7.0B | $42.9B | $53.5B | $37.8B | $1.3B |
| P/E Ratio → | 18.82 | 0.19 | 0.22 | 0.21 | 0.39 | 0.59 | 0.07 | 0.07 | 0.11 | 0.11 | 0.08 |
| P/S Ratio | 3.26 | 0.03 | 0.04 | 0.04 | 0.04 | 4.00 | 0.04 | 0.04 | 0.04 | 0.05 | 0.05 |
| P/B Ratio | 3.16 | 0.03 | 0.04 | 0.04 | 0.05 | 4.31 | 3.27 | 0.05 | 0.04 | 0.05 | 0.06 |
| P/FCF | 88.28 | 0.91 | 0.68 | 0.24 | 1.02 | 0.44 | 0.28 | 0.32 | 0.78 | — | 0.29 |
| P/OCF | 22.87 | 0.24 | 0.27 | 0.16 | 0.33 | 0.29 | 0.22 | 0.23 | 0.30 | 0.31 | 0.19 |
P/E links to full P/E history page with 30-year chart
RDY EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Dr. Reddy's Laboratories Limited's enterprise value stands at 12.3x EBITDA, 224% above its 5-year average of 3.8x. The Healthcare sector median is 14.4x, placing the stock at a 14% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.13 | 0.09 | 0.07 | 0.13 | 4.08 | 0.04 | 0.28 | 0.38 | 0.27 | 0.01 |
| EV / EBITDA | 12.31 | 0.48 | 0.30 | 0.25 | 0.68 | 17.26 | 0.24 | 1.30 | 2.26 | 1.52 | 0.03 |
| EV / EBIT | 15.23 | 0.54 | 0.34 | 0.28 | 0.85 | 28.76 | 0.24 | 1.84 | 3.54 | 2.47 | 0.05 |
| EV / FCF | — | 3.58 | 1.40 | 0.43 | 3.12 | 0.45 | 0.29 | 2.02 | 7.66 | — | 0.05 |
RDY Profitability
Margins and return-on-capital ratios measuring operating efficiency
Dr. Reddy's Laboratories Limited earns an operating margin of 22.1%. Operating margins have compressed from 23.2% to 22.1% over the past 3 years, signaling potential cost pressures or competitive headwinds. ROE of 18.3% indicates solid capital efficiency. ROIC of 16.3% represents solid returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 58.5% | 58.5% | 58.6% | 56.7% | 53.1% | 50.8% | 53.8% | 54.2% | 53.7% | 55.6% | 59.6% |
| Operating Margin | 22.1% | 22.1% | 24.3% | 23.2% | 13.7% | 16.9% | 9.2% | 13.6% | 8.4% | 9.6% | 19.1% |
| Net Profit Margin | 17.4% | 17.4% | 19.9% | 18.3% | 11.0% | 9.1% | 11.2% | 12.2% | 6.9% | 8.5% | 12.9% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 18.3% | 18.3% | 21.8% | 21.4% | 24.4% | 10.5% | 27.4% | 14.1% | 7.8% | 9.5% | 16.7% |
| ROA | 12.8% | 12.8% | 15.7% | 14.7% | 15.9% | 6.9% | 17.1% | 8.3% | 4.4% | 5.6% | 9.9% |
| ROIC | 16.3% | 16.3% | 19.1% | 19.1% | 20.8% | 13.2% | 13.4% | 8.9% | 5.4% | 7.3% | 18.8% |
| ROCE | 22.0% | 22.0% | 25.7% | 26.3% | 29.3% | 18.8% | 19.1% | 13.0% | 8.2% | 9.7% | 21.6% |
RDY Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Dr. Reddy's Laboratories Limited carries a Debt/EBITDA ratio of 0.5x, which is very conservative (84% below the sector average of 3.3x). Net debt stands at $32.1B ($46.8B total debt minus $14.7B cash). Interest coverage of 25.4x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.14 | 0.14 | 0.07 | 0.06 | 0.18 | 0.18 | 0.14 | 0.27 | 0.40 | 0.40 | 0.26 |
| Debt / EBITDA | 0.53 | 0.53 | 0.24 | 0.19 | 0.82 | 0.69 | 0.01 | 1.16 | 2.15 | 1.99 | 0.84 |
| Net Debt / Equity | — | 0.10 | 0.05 | 0.03 | 0.10 | 0.09 | 0.13 | 0.26 | 0.38 | 0.25 | -0.05 |
| Net Debt / EBITDA | 0.36 | 0.36 | 0.16 | 0.11 | 0.46 | 0.35 | 0.01 | 1.09 | 2.03 | 1.25 | -0.16 |
| Debt / FCF | — | 2.67 | 0.72 | 0.19 | 2.10 | 0.01 | 0.01 | 1.70 | 6.88 | — | -0.24 |
| Interest Coverage | 25.40 | 25.40 | 39.58 | 40.02 | 30.77 | 0.44 | 1153.61 | 23.50 | 15.12 | 21.29 | 35.86 |
RDY Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.92x means Dr. Reddy's Laboratories Limited can comfortably meet its short-term obligations, though there is limited excess liquidity. The quick ratio of 1.37x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has declined from 2.38x to 1.92x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.92 | 1.92 | 2.58 | 2.38 | 1.93 | 1.78 | 1.79 | 1.92 | 1.57 | 1.18 | 1.85 |
| Quick Ratio | 1.37 | 1.37 | 1.92 | 1.81 | 1.39 | 1.23 | 1.31 | 1.36 | 1.16 | 0.85 | 1.46 |
| Cash Ratio | 0.44 | 0.44 | 0.85 | 0.72 | 0.47 | 0.41 | 0.35 | 0.41 | 0.30 | 0.21 | 0.62 |
| Asset Turnover | — | 0.66 | 0.72 | 0.76 | 0.73 | 0.70 | 56.88 | 0.68 | 0.63 | 0.64 | 0.75 |
| Inventory Turnover | 1.90 | 1.90 | 1.82 | 2.19 | 1.98 | 2.03 | 173.87 | 2.10 | 2.26 | 2.19 | 2.44 |
| Days Sales Outstanding | — | 123.10 | 124.65 | 123.51 | 136.66 | 120.49 | 1.71 | 110.63 | 129.01 | 118.56 | 114.67 |
RDY Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Dr. Reddy's Laboratories Limited returns 0.8% to shareholders annually — split between a 0.6% dividend yield and 0.1% buyback yield. The payout ratio of 11.8% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 5.3% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.6% | 60.5% | 54.4% | 52.5% | 44.7% | 40.6% | 58.4% | 59.5% | 73.5% | 50.6% | 53.1% |
| Payout Ratio | 11.8% | 11.8% | 11.9% | 11.0% | 17.6% | 1785.9% | 20.1% | 21.3% | 40.7% | 28.2% | 20.5% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.3% | 513.8% | 455.4% | 475.6% | 254.2% | 168.8% | 1454.8% | 1396.2% | 902.3% | 897.8% | 1294.0% |
| FCF Yield | 1.1% | 109.3% | 147.2% | 422.2% | 97.7% | 226.6% | 354.0% | 315.2% | 128.6% | — | 341.1% |
| Buyback Yield | 0.1% | 12.6% | 0.0% | 0.0% | 0.0% | 11.7% | 7.1% | 7.9% | 0.0% | 100.0% | 0.0% |
| Total Shareholder Yield | 0.8% | 73.2% | 54.4% | 52.5% | 44.7% | 52.3% | 65.5% | 67.4% | 73.5% | 100.0% | 53.1% |
| Shares Outstanding | — | $834M | $834M | $832M | $832M | $832M | $830M | $831M | $831M | $835M | $855M |
Peer Comparison
Compare RDY with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 RDYYou | $11B | 18.8 | 12.3 | 88.3 | 58.5% | 22.1% | 18.3% | 16.3% | 0.5 |
 SUN | $9B | 18.5 | 15.1 | 15.1 | 8.3% | 3.7% | 8.7% | 4.0% | 10.0 |
 PRGO | $2B | -1.1 | 7.4 | 11.1 | 35.1% | 8.1% | -39.3% | 3.7% | 5.8 |
 AMRX | $4B | 62.4 | — | 16.0 | 36.9% | -0.2% | 15.7% | -0.2% | — |
 TEVA | $42B | 30.0 | 17.6 | 36.5 | 51.8% | 12.5% | 20.7% | 7.7% | 5.5 |
 VTRS | $20B | -5.8 | 248.5 | 10.5 | 35.1% | -18.6% | -21.1% | -6.6% | 108.7 |
 MCK | $92B | 29.2 | 18.7 | 17.6 | 3.5% | 1.2% | — | 540.6% | 1.5 |
 CAH | $44B | 28.7 | 16.0 | 23.6 | 3.7% | 1.0% | — | 3378.7% | 3.0 |
 CVS | $111B | 62.8 | 13.1 | 14.3 | 13.8% | 2.6% | 2.3% | 5.0% | 6.2 |
 IQV | $30B | 22.8 | 13.0 | 14.8 | 26.3% | 14.0% | 21.4% | 8.7% | 4.7 |
 PFE | $151B | 19.5 | 10.7 | 16.6 | 70.3% | 24.7% | 8.9% | 7.5% | 3.3 |
| Healthcare Median | — | 22.3 | 14.4 | 18.5 | 63.9% | -5.2% | -33.7% | -11.2% | 3.3 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonRDY — Frequently Asked Questions
Quick answers to the most common questions about buying RDY stock.
What is Dr. Reddy's Laboratories Limited's P/E ratio?
Dr. Reddy's Laboratories Limited's current P/E ratio is 18.8x. The historical average is 0.2x. This places it at the 100th percentile of its historical range.
What is Dr. Reddy's Laboratories Limited's EV/EBITDA?
Dr. Reddy's Laboratories Limited's current EV/EBITDA is 12.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 3.5x.
What is Dr. Reddy's Laboratories Limited's ROE?
Dr. Reddy's Laboratories Limited's return on equity (ROE) is 18.3%. The historical average is 15.6%.
Is RDY stock overvalued?
Based on historical data, Dr. Reddy's Laboratories Limited is trading at a P/E of 18.8x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Dr. Reddy's Laboratories Limited's dividend yield?
Dr. Reddy's Laboratories Limited's current dividend yield is 0.63% with a payout ratio of 11.8%.
What are Dr. Reddy's Laboratories Limited's profit margins?
Dr. Reddy's Laboratories Limited has 58.5% gross margin and 22.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Dr. Reddy's Laboratories Limited have?
Dr. Reddy's Laboratories Limited's Debt/EBITDA ratio is 0.5x, indicating low leverage. A ratio below 2x is generally considered financially healthy.