Latest Ratios: P/E Ratio 26.0x · EV/EBITDA 17.4x · ROE 12.7%. (2001–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $12.4B | $11.5B | $11.0B | $12.2B | $9.5B | $9.3B | $10.2B | $6.7B | $6.7B | $5.4B | $6.7B |
| Enterprise Value | $13.0B | $72.3B | $43.1B | $25.1B | $17.2B | $28.3B | $10.4B | $7.0B | $42.9B | $53.5B | $37.8B |
| P/E Ratio → | 26.03 | 0.26 | 0.19 | 0.22 | 0.21 | 0.39 | 0.59 | 0.07 | 0.07 | 0.11 | 0.11 |
| P/S Ratio | 3.31 | 0.03 | 0.03 | 0.04 | 0.04 | 0.04 | 4.00 | 0.04 | 0.04 | 0.04 | 0.05 |
| P/B Ratio | 3.14 | 0.03 | 0.03 | 0.04 | 0.04 | 0.05 | 4.31 | 3.27 | 0.05 | 0.04 | 0.05 |
| P/FCF | 36.40 | 0.36 | 0.91 | 0.68 | 0.24 | 1.02 | 0.44 | 0.28 | 0.32 | 0.78 | — |
| P/OCF | 20.63 | 0.20 | 0.24 | 0.27 | 0.16 | 0.33 | 0.29 | 0.22 | 0.23 | 0.30 | 0.31 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.20 | 0.13 | 0.09 | 0.07 | 0.13 | 4.08 | 0.04 | 0.28 | 0.38 | 0.27 |
| EV / EBITDA | 17.42 | 1.02 | 0.48 | 0.30 | 0.25 | 0.68 | 17.26 | 0.24 | 1.30 | 2.26 | 1.52 |
| EV / EBIT | 25.16 | 1.48 | 0.54 | 0.34 | 0.28 | 0.85 | 28.76 | 0.24 | 1.84 | 3.54 | 2.47 |
| EV / FCF | — | 2.25 | 3.58 | 1.40 | 0.43 | 3.12 | 0.45 | 0.29 | 2.02 | 7.66 | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 52.8% | 52.8% | 58.5% | 58.6% | 56.7% | 53.1% | 50.8% | 53.8% | 54.2% | 53.7% | 55.6% |
| Operating Margin | 13.8% | 13.8% | 22.1% | 24.3% | 23.2% | 13.7% | 16.9% | 9.2% | 13.6% | 8.4% | 9.6% |
| Net Profit Margin | 12.8% | 12.8% | 17.4% | 19.9% | 18.3% | 11.0% | 9.1% | 11.2% | 12.2% | 6.9% | 8.5% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 12.7% | 12.7% | 18.3% | 21.8% | 21.4% | 24.4% | 10.5% | 27.4% | 14.1% | 7.8% | 9.5% |
| ROA | 8.5% | 8.5% | 12.8% | 15.7% | 14.7% | 15.9% | 6.9% | 17.1% | 8.3% | 4.4% | 5.6% |
| ROIC | 9.1% | 9.1% | 16.3% | 19.1% | 19.1% | 20.8% | 13.2% | 13.4% | 8.9% | 5.4% | 7.3% |
| ROCE | 12.8% | 12.8% | 22.0% | 25.7% | 26.3% | 29.3% | 18.8% | 19.1% | 13.0% | 8.2% | 9.7% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.20 | 0.20 | 0.14 | 0.07 | 0.06 | 0.18 | 0.18 | 0.14 | 0.27 | 0.40 | 0.40 |
| Debt / EBITDA | 1.07 | 1.07 | 0.53 | 0.24 | 0.19 | 0.82 | 0.69 | 0.01 | 1.16 | 2.15 | 1.99 |
| Net Debt / Equity | — | 0.16 | 0.10 | 0.05 | 0.03 | 0.10 | 0.09 | 0.13 | 0.26 | 0.38 | 0.25 |
| Net Debt / EBITDA | 0.86 | 0.86 | 0.36 | 0.16 | 0.11 | 0.46 | 0.35 | 0.01 | 1.09 | 2.03 | 1.25 |
| Debt / FCF | — | 1.89 | 2.67 | 0.72 | 0.19 | 2.10 | 0.01 | 0.01 | 1.70 | 6.88 | — |
| Interest Coverage | 12.42 | 12.42 | 28.14 | 43.00 | 43.27 | 34.71 | 0.37 | 2114.41 | 26.25 | 19.20 | 24.11 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.80 | 1.80 | 1.92 | 2.58 | 2.38 | 1.93 | 1.78 | 1.79 | 1.92 | 1.57 | 1.18 |
| Quick Ratio | 1.35 | 1.35 | 1.37 | 1.92 | 1.81 | 1.39 | 1.23 | 1.31 | 1.36 | 1.16 | 0.85 |
| Cash Ratio | 0.52 | 0.52 | 0.44 | 0.85 | 0.72 | 0.47 | 0.41 | 0.35 | 0.41 | 0.30 | 0.21 |
| Asset Turnover | — | 0.62 | 0.66 | 0.72 | 0.76 | 0.73 | 0.70 | 56.88 | 0.68 | 0.63 | 0.64 |
| Inventory Turnover | 2.23 | 2.23 | 1.90 | 1.82 | 2.19 | 1.98 | 2.03 | 173.87 | 2.10 | 2.26 | 2.19 |
| Days Sales Outstanding | — | 102.45 | 123.10 | 124.65 | 123.51 | 136.66 | 120.49 | 1.71 | 110.63 | 129.01 | 118.56 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.6% | 60.7% | 60.5% | 54.4% | 52.5% | 44.7% | 40.6% | 58.4% | 59.5% | 73.5% | 50.6% |
| Payout Ratio | 15.5% | 15.5% | 11.8% | 11.9% | 11.0% | 17.6% | 1785.9% | 20.1% | 21.3% | 40.7% | 28.2% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.8% | 389.3% | 513.8% | 455.4% | 475.6% | 254.2% | 168.8% | 1454.8% | 1396.2% | 902.3% | 897.8% |
| FCF Yield | 2.7% | 278.2% | 109.3% | 147.2% | 422.2% | 97.7% | 226.6% | 354.0% | 315.2% | 128.6% | — |
| Buyback Yield | 0.0% | 0.0% | 12.6% | 0.0% | 0.0% | 0.0% | 11.7% | 7.1% | 7.9% | 0.0% | 100.0% |
| Total Shareholder Yield | 0.6% | 60.7% | 73.2% | 54.4% | 52.5% | 44.7% | 52.3% | 65.5% | 67.4% | 73.5% | 100.0% |
| Shares Outstanding | — | $833M | $834M | $834M | $832M | $832M | $832M | $830M | $831M | $831M | $835M |
US Generic Pricing Erosion
As reported in recent financial filings, RDY's P/E ratio of 26.90 and P/FCF of 37.62 suggest that the market is pricing in a recovery, despite the company's recent revenue contraction and the significant compression of its core operating margins observed over the last ten quarters.
The current valuation appears to demand a premium that may be difficult to justify given the recent deceleration in top-line growth and the volatility in earnings. Investors should monitor whether the current P/E multiple is supported by a pipeline of complex generic launches or if it represents an over-optimistic expectation of margin expansion.
Based on the provided financial data, RDY's ROIC has experienced a sharp decline from 10.1% in 2024Q3 to a marginal 0.1% in 2026Q4, indicating that recent capital deployments into manufacturing infrastructure are currently failing to generate meaningful returns relative to the company's historical performance.
The deterioration in ROIC suggests that the company's shift toward an asset-heavy model is not yet yielding the expected competitive advantages. This trend warrants further investigation into whether the increased investment in PPE is being effectively utilized or if it is merely inflating the asset base without driving incremental profitability.
According to quarterly data, RDY's cash conversion cycle has expanded significantly to 218 days in 2026Q4 from 98 days in 2024Q3, primarily driven by rising inventory days and a lengthening of the time required to collect receivables across its global generic operations.
The lengthening of the cash conversion cycle indicates a potential loss of leverage over customers and inefficiencies in inventory management. This trend suggests that the company may be struggling to move product through the supply chain as effectively as it did in previous periods, which could further pressure cash flow.
As evidenced by the reported figures, RDY maintains a disciplined debt-to-equity ratio of 0.20 as of 2026Q4, which provides a substantial financial cushion against the volatility currently impacting the broader generic pharmaceutical sector's operating margins and the ongoing challenges of US generic pricing.
The company's low leverage profile is a key defensive characteristic that distinguishes it from more highly indebted peers. While this conservative stance limits financial risk, it also suggests that the company is relying on internal cash generation to fund its R&D and capital expenditure requirements during this period of margin compression.
As noted in institutional research, the P/E ratio is frequently misapplied to RDY, as it fails to account for the lumpy nature of patent-related settlements and the heavy amortization of intangible assets that often distort reported net income and mask underlying operational cash flow trends.
Analysts should prioritize EV/EBITDA or P/FCF to better capture the company's true earning power, as these metrics are less susceptible to the accounting noise inherent in the generic pharmaceutical business model. Relying solely on P/E may lead to an inaccurate assessment of the company's valuation relative to its actual cash-generating capacity.
Includes 30+ ratios · 26 years · Updated daily
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Quick answers to the most common questions about buying RDY stock.
Dr. Reddy's Laboratories Limited's current P/E ratio is 26.0x. The historical average is 0.2x. This places it at the 100th percentile of its historical range.
Dr. Reddy's Laboratories Limited's current EV/EBITDA is 17.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 3.4x.
Dr. Reddy's Laboratories Limited's return on equity (ROE) is 12.7%. The historical average is 15.5%.
Based on historical data, Dr. Reddy's Laboratories Limited is trading at a P/E of 26.0x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Dr. Reddy's Laboratories Limited's current dividend yield is 0.60% with a payout ratio of 15.5%.
Dr. Reddy's Laboratories Limited has 52.8% gross margin and 13.8% operating margin. Operating margin between 10-20% is typical for established companies.
Dr. Reddy's Laboratories Limited's Debt/EBITDA ratio is 1.1x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.