RDYDr. Reddy's Laboratories Limited
Is it safe?
Nothing alarming, nothing pristine: comfortable debt (AA) and typical volatility.
Rock-solid balance sheet, low leverage. A rule of thumb on leverage, not a credit rating.
Moderate price swings, typical volatility. Worst drawdown -47% · now 18% below its 52-week high.
Where this answer is blind. Altman sits structurally low for utilities and pipelines; Beneish runs high for fast growers, since sales growth alone lifts it; banks and REITs are excluded.
Can RDY take a bad year?
Dr. Reddy's Laboratories Limited carries $29.6B of net debt at 0.36× EBITDA: a load its earnings can carry.
Net debt · as at FY2025 · under two and a half years of EBITDA, comfortable
- Net debt / EBITDA
- 0.36×
Net debt / EBITDA · 0.13× a year ago · the load is going up
- Interest cover
- 25.4×
Interest cover · operating profit covers the interest bill several times over
- Annualised volatility
- 27%
Annualised volatility · about as steady as the market itself
Details›
- Total debtFY2025
- $46.8B
- Cash and short-term investments
- $17.2B
- Net debt
- $29.6B
- EBITDA, trailing twelve months
- $82.3B
- Operating profit, trailing twelve months
- $71.8B
- Debt / equity
- 0.14×
- Total debt / EBITDA
- 0.57×
- Annualised volatilitytwo years of daily moves
- 27%
- Worst drawdown on file
- −47%
- Below its 52-week high
- 18%
Balance sheet from SEC filings; drawdown and volatility from end-of-day closes; Altman Z from the filed statements.
Drug Manufacturers, Specialty & Generic
Ranks #3 of 41 by RyuScore