Dr. Reddy's Laboratories Limited

RDY

Drug Manufacturers - Specialty & Generic · Healthcare

Exchange

New York Stock Exchange

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Mixed

Growth

Weak

Cash Flow

Strong

Stability

Exceptional

Valuation

Good

Dividends

Weak

Track this stock — start free trial

Winston Score History

The full picture

Dr. Reddy's Laboratories is an Indian pharmaceutical company that makes and sells generic and branded medicines. Its products include generic prescription drugs, over-the-counter medicines, and active pharmaceutical ingredients (APIs), which are the raw chemical compounds used to make drugs. The company sells to hospitals, pharmacies, and other drug manufacturers across many countries, making it one of the largest generic drugmakers based in India.

Dr. Reddy's earns money by selling finished medicines and APIs to customers in India, the United States, Europe, Russia, and other emerging markets. The US is its largest single market, where it competes with other generic manufacturers to supply lower-cost versions of brand-name drugs after patents expire. Its competitive edge comes from a large portfolio of approved generic drugs and its own API manufacturing, which reduces production costs. The main risk the company faces is pricing pressure in the US generic drug market, where competition is intense and prices have been declining for years.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-10.3% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-86.0% YoY

YoY Growth Rate

Earnings declining

Insider Activity

0.0%ownership

Relatively low insider ownership

Cash Position

Cash flow positive

$102.1B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Dr. Reddy's Laboratories Limited's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

46.5%

Healthy — 46.5% gross margin

Profit after running costs

Operating Margin

3.7%

Thin — 3.7% operating margin

Return on the money invested

ROCE

8.0%

Weak — 8.0% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Growth

Sales growth

Sales YoY

-0.4%

Shrinking sales (-0.4% YoY)

Profit growth

EPS YoY

-41.6%

Earnings shrinking (-41.6% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Cash Flow

Profit that turns into cash

Cash Conversion

124%

Turns 124% of profit into real cash

Spare cash per sale

FCF Margin

4.6%

Thin free cash flow (4.6%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Stability

What it owes vs what it owns

Debt / Equity

0.15

Conservative — low debt load (0.15)

Covers its interest

Interest Cover

8.39x

Comfortably covers interest (8.4x)

Interest coverage above 8. Profits cover interest many times over.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Valuation

Price vs profit

P/E Ratio (TTM)

29.6x

no trend

Growth-priced — P/E 29.6

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year

P/E vs Forward

+1.8

GROWING

Earnings expected to grow — slightly cheaper on forward P/E

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Dividends

Dividend

Dividend Yield

0.68%

no trend

Small dividend — 0.68% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

-14.9%

no trend

Dividend cut (-14.9% YoY) — warning sign

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

🔒 See full fundamentals and if they are improving or declining — click here for your free trial now.

Start free trial