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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 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.
How the price compares to earnings, assets and cash generation.
You are paying 31.1 years of current profit for each share. The earnings yield is 3.2%. The tracked Pharma & Healthcare median is 32.2× (n=7), so this trades cheaper than its peers.
The market values the company at 2.6× its accounting net worth. High is normal for asset-light businesses and unusual for banks.
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.
Pays 0.65% of the current price out each year. Remember that yield rises when price falls — check the dividend is covered by cash flow.
Based on the next-year earnings estimate — 20.4× against 31.1× trailing. A forward P/E well below trailing is pricing in an earnings jump; treat the forecast with caution.
You pay 3.0× annual sales. Useful when earnings are depressed or negative and P/E breaks down — but a high multiple needs high margins to justify it.
Returns on capital and margins, the numerical shadow of a moat.
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.
ROE and ROA are reasonably close, so the returns come largely from the business itself rather than from borrowing.
Keeps ₹4.3 of operating profit from every ₹100 of sales. Compare only against companies in the same industry.
Sustained high net margins are evidence that something is stopping competitors from competing the profits away.
Keeps ₹50.2 of gross profit per ₹100 of sales, before operating costs. A high, stable gross margin is the clearest single sign of pricing power.
Leverage and liquidity. This is where fragility shows up first.
A conservative balance sheet that can absorb a downturn without a crisis.
Short-term obligations are comfortably covered by short-term assets.
The current ratio stripped of inventory — a stricter test of whether near-term bills can be met without selling stock. Below 1 means the company is relying on inventory turning to cash.
Against cash of ₹8142.70 Cr. Net debt is what matters, not gross borrowings.
Spends more on capital than it generates from operations. Fine during an expansion phase, dangerous if it persists.
Revenue and earnings momentum, and how the two compare.
Ask where the growth came from: more volume, higher prices, or an acquisition. They are very different in quality.
Profits are growing slower than sales, meaning margins are compressing. The company may be buying its growth.
EBITDA of ₹5467.20 Cr and operating cash flow of ₹4119.90 Cr.
P/E divided by expected growth. Only as reliable as that growth forecast, which is usually optimistic.
The figures quoted per share, and how much profit is handed back to owners.
₹38.84 of profit earned per share over the last twelve months. Price divided by this is the trailing P/E.
The accounting net worth behind each share is ₹460.31; price-to-book compares the market price with this.
Pays out 20% of profit as dividends and retains the rest. Above roughly 85% leaves little to reinvest and is hard to sustain through a weak year.
Market cap plus net debt — closer to what an acquirer actually pays. Against a market cap of ₹1,00,475 Cr.
Return on equity splits into three drivers. The identical ROE can be a genuinely great business or a heavily borrowed ordinary one.
The return leans on the business itself — margin and asset turnover — rather than on heavy borrowing, which is the healthier source of a high ROE.
Nine yes/no tests of profitability, funding and efficiency across the last two years; higher is stronger. A test is dropped only where the data is missing, so the score is out of 9.
NOPAT ÷ invested capital. What the business earns on all its capital, debt and equity — harder to flatter with leverage than ROE.
A company creates value only when ROIC clears its cost of capital (WACC) — judge this figure against the company’s cost of capital, and watch the trend across years.
Five weighted ratios in one bankruptcy early-warning number. Read the zone and, over time, the trend.
Comfortably in the safe zone — low near-term distress risk on this measure. Still worth tracking the trend.
Reported figures, most recent year first. All values in rupees.
| FY2026 | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | ₹33593.30 Cr | ₹32553.50 Cr | ₹27916.40 Cr | ₹24587.90 Cr | — |
| Cost of revenue | ₹15866.90 Cr | ₹13510.70 Cr | ₹11555.70 Cr | ₹10653.60 Cr | — |
| Gross profit | ₹17726.40 Cr | ₹19042.80 Cr | ₹16360.70 Cr | ₹13934.30 Cr | — |
| Operating expenses | ₹12714.10 Cr | ₹11841.40 Cr | ₹9829.90 Cr | ₹8028.90 Cr | — |
| Operating income | ₹5012.30 Cr | ₹7201.40 Cr | ₹6530.80 Cr | ₹5905.40 Cr | — |
| Interest expense | ₹373.80 Cr | ₹282.90 Cr | ₹171.10 Cr | ₹142.80 Cr | — |
| Pre-tax income | ₹5481.70 Cr | ₹7678.40 Cr | ₹7187.00 Cr | ₹6036.70 Cr | — |
| Tax | ₹1235.10 Cr | ₹1953.90 Cr | ₹1618.60 Cr | ₹1530.00 Cr | — |
| Net profit | ₹4285.00 Cr | ₹5654.40 Cr | ₹5568.40 Cr | ₹4506.70 Cr | — |