Fundamentals scanner
Every ratio from the Fundamental Analysis track, computed on a real company and annotated with what the number actually means. Then the three financial statements, so you can do the cash-flow check yourself.
Dr. Reddy's Laboratories
HealthcareNeutral- Market cap
- ₹99960.01 Cr
- P/E
- 30.2x
- ROE
- 8.8%
- Debt / equity
- 0.19
What the company does
Dr. Reddy's Laboratories Limited, together with its subsidiaries, operates as an integrated pharmaceutical company North America, Europe, India, Russia, and internationally. The company operates through Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Others segment. Its Global Generics segment manufactures and markets prescription and over-the-counter finished pharmaceutical products that are marketed under a brand name or as a generic finished dosages with therapeutic equivalence to branded formulations, as well as engages in the biologics business. The PSAI segment manufactures and markets active pharmaceutical ingredients and intermediates, which are principal ingredients for finished pharmaceutical products. This segment also provides contract research services; and manufactures and sells active pharmaceutical ingredients and steroids with the customer requirements. Its Others segment engages in developing therapies in the fields of oncology and inflammation; and research, development, and commercialization of differentiated formulations. The company offers its products for various therapeutic categories, including gastro-intestinal, cardiovascular, anti-diabetic, dermatology, oncology, respiratory, stomatology, urology, and nephrology, vaccines, vitamins and minerals, and pain management. Dr. Reddy's Laboratories Limited was incorporated in 1984 and is headquartered in Hyderabad, India.
Valuation — what you are paying
How the price compares to earnings, assets and cash generation.
- P/E (trailing)30.2xFair
You are paying 30.2 years of current profit for each share. The earnings yield is 3.3%.
- P/B (price to book)2.6xStrong
The market values the company at 2.6× its accounting net worth. High is normal for asset-light businesses and unusual for banks.
- EV / EBITDA18.2xFair
This is the only common multiple that accounts for debt — it is what an actual acquirer would look at, because they would inherit the borrowings.
- Dividend yield0.67%Fair
Pays 0.67% of the current price out each year. Remember that yield rises when price falls — check the dividend is covered by cash flow.
Profitability — is this a good business?
Returns on capital and margins, the numerical shadow of a moat.
- Return on equity8.8%Weak
Earns ₹8.8 of profit a year for every ₹100 of shareholders' money. Always check how much of this comes from leverage rather than the business.
- Return on assets4.0%Fair
ROE and ROA are reasonably close, so the returns come largely from the business itself rather than from borrowing.
- Operating margin4.3%Weak
Keeps ₹4.3 of operating profit from every ₹100 of sales. Compare only against companies in the same industry.
- Net margin10.0%Fair
Sustained high net margins are evidence that something is stopping competitors from competing the profits away.
Financial strength — can it survive a bad year?
Leverage and liquidity. This is where fragility shows up first.
- Debt to equity0.19Strong
A conservative balance sheet that can absorb a downturn without a crisis.
- Current ratio1.90Strong
Short-term obligations are comfortably covered by short-term assets.
- Total debt₹7195.20 CrNo data
Against cash of ₹8142.70 Cr. Net debt is what matters, not gross borrowings.
- Free cash flow-₹390.96 CrWeak
Spends more on capital than it generates from operations. Fine during an expansion phase, dangerous if it persists.
Growth — is it getting bigger?
Revenue and earnings momentum, and how the two compare.
- Revenue growth (yoy)-5.6%Weak
Ask where the growth came from: more volume, higher prices, or an acquisition. They are very different in quality.
- Earnings growth (yoy)-68.7%Weak
Profits are growing slower than sales, meaning margins are compressing. The company may be buying its growth.
- Revenue (TTM)₹33118.60 CrNo data
EBITDA of ₹5467.20 Cr and operating cash flow of ₹4119.90 Cr.
- PEG ratio1.67Fair
P/E divided by expected growth. Only as reliable as that growth forecast, which is usually optimistic.
Financial statements
Reported figures, most recent year first. All values in rupees.
| FY2026 | FY2025 | FY2024 | FY2023 | |
|---|---|---|---|---|
| Revenue | ₹33593.30 Cr | ₹32553.50 Cr | ₹27916.40 Cr | ₹24669.70 Cr |
| Cost of revenue | ₹0.00 | ₹0.00 | ₹0.00 | ₹0.00 |
| Gross profit | ₹0.00 | ₹0.00 | ₹0.00 | ₹0.00 |
| Operating expenses | ₹0.00 | ₹0.00 | ₹0.00 | ₹0.00 |
| Operating income | — | — | — | — |
| Interest expense | — | — | — | — |
| Pre-tax income | — | — | — | — |
| Tax | ₹0.00 | ₹0.00 | ₹0.00 | ₹0.00 |
| Net profit | ₹4285.00 Cr | ₹5654.40 Cr | ₹5577.90 Cr | ₹4507.30 Cr |