Dr. Reddy'S Laboratories (RDY) Fundamental Analysis: Revenue, Earnings & Valuation

6.45 / 10

Outperform

Fundamentally, RDY is rated Outperform with a 6.5/10 score. Strong inventory turnover (2.01) and high interest coverage (35.1) support growth, as revenue YoY rises ~16.6%. Weaknesses include a high current‑liabilities ratio (83.7%) and modest PB‑ROE, tempering optimism.

Analysis Checks(8/10)

Revenue-MV

Value-0.11

Score3/3

Weight31.37%

1M Return8.11%

Total operating revenue (YoY growth rate %)

Value16.61

Score2/3

Weight0.43%

1M Return0.13%

Inventory turnover ratio

Value2.01

Score3/3

Weight-3.08%

1M Return-0.93%

Current liabilities / Total liabilities (%)

Value83.68

Score1/3

Weight-5.01%

1M Return-1.69%

PB-ROE

Value0.91

Score1/3

Weight25.35%

1M Return7.56%

Long-term debt to working capital ratio (%)

Value0.21

Score3/3

Weight2.74%

1M Return0.87%

Interest coverage ratio (EBIT / Interest expense) (%)

Value35.11

Score2/3

Weight-3.64%

1M Return-1.17%

Operating revenue (YoY growth rate %)

Value16.61

Score2/3

Weight0.17%

1M Return0.05%

Cost of sales ratio (%)

Value41.50

Score2/3

Weight-3.44%

1M Return-1.13%

Asset-MV

Value-0.58

Score3/3

Weight55.08%

1M Return11.61%

Is RDY fundamentally strong?

RDY scores 6.45/10 on fundamentals and holds a Discounted valuation at present. Backed by its 11.40% ROE, 16.26% net margin, 17.57 P/E ratio, 2.69 P/B ratio, and 1.47% earnings growth, these metrics solidify its Outperform investment rating.