Dr Reddys Laboratories Stock Profit Margin

RDY Stock  USD 71.31  0.30  0.42%   
Dr Reddys Laboratories fundamentals help investors to digest information that contributes to Dr Reddys' financial success or failures. It also enables traders to predict the movement of RDY Stock. The fundamental analysis module provides a way to measure Dr Reddys' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Dr Reddys stock.
Last ReportedProjected for Next Year
Net Profit Margin 0.21  0.12 
Operating Profit Margin is likely to rise to 0.37 in 2024, whereas Pretax Profit Margin is likely to drop 0.11 in 2024.
  
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Dr Reddys Laboratories Company Profit Margin Analysis

Dr Reddys' Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Profit Margin

 = 

Net Income

Revenue

X

100

More About Profit Margin | All Equity Analysis

Current Dr Reddys Profit Margin

    
  0.19 %  
Most of Dr Reddys' fundamental indicators, such as Profit Margin, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Dr Reddys Laboratories is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

RDY Profit Margin Driver Correlations

Understanding the fundamental principles of building solid financial models for Dr Reddys is extremely important. It helps to project a fair market value of RDY Stock properly, considering its historical fundamentals such as Profit Margin. Since Dr Reddys' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Dr Reddys' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Dr Reddys' interrelated accounts and indicators.

RDY Profit Margin Historical Pattern

Today, most investors in Dr Reddys Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Dr Reddys' growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's profit margin growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Dr Reddys profit margin as a starting point in their analysis.
   Dr Reddys Profit Margin   
       Timeline  
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Competition

RDY Pretax Profit Margin

Pretax Profit Margin

0.11

At this time, Dr Reddys' Pretax Profit Margin is fairly stable compared to the past year.
Based on the latest financial disclosure, Dr Reddys Laboratories has a Profit Margin of 0.1924%. This is 101.72% lower than that of the Pharmaceuticals sector and significantly higher than that of the Health Care industry. The profit margin for all United States stocks is 115.15% lower than that of the firm.

RDY Profit Margin Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Dr Reddys' direct or indirect competition against its Profit Margin to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Dr Reddys could also be used in its relative valuation, which is a method of valuing Dr Reddys by comparing valuation metrics of similar companies.
Dr Reddys is currently under evaluation in profit margin category among related companies.

Dr Reddys Current Valuation Drivers

We derive many important indicators used in calculating different scores of Dr Reddys from analyzing Dr Reddys' financial statements. These drivers represent accounts that assess Dr Reddys' ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Dr Reddys' important valuation drivers and their relationship over time.
201920202021202220232024 (projected)
Market Cap511.9B746.6B702.3B776.0B698.4B733.4B
Enterprise Value531.9B762.0B721.2B783.7B705.4B740.6B

RDY Fundamentals

About Dr Reddys Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Dr Reddys Laboratories's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Dr Reddys using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Dr Reddys Laboratories based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

Currently Active Assets on Macroaxis

When determining whether Dr Reddys Laboratories offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Dr Reddys' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Dr Reddys Laboratories Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Dr Reddys Laboratories Stock:
Check out Dr Reddys Piotroski F Score and Dr Reddys Altman Z Score analysis.
Note that the Dr Reddys Laboratories information on this page should be used as a complementary analysis to other Dr Reddys' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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When running Dr Reddys' price analysis, check to measure Dr Reddys' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Dr Reddys is operating at the current time. Most of Dr Reddys' value examination focuses on studying past and present price action to predict the probability of Dr Reddys' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Dr Reddys' price. Additionally, you may evaluate how the addition of Dr Reddys to your portfolios can decrease your overall portfolio volatility.
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Is Dr Reddys' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Dr Reddys. If investors know RDY will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Dr Reddys listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.103
Dividend Share
40
Earnings Share
3.75
Revenue Per Share
272.4618
Quarterly Revenue Growth
0.066
The market value of Dr Reddys Laboratories is measured differently than its book value, which is the value of RDY that is recorded on the company's balance sheet. Investors also form their own opinion of Dr Reddys' value that differs from its market value or its book value, called intrinsic value, which is Dr Reddys' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Dr Reddys' market value can be influenced by many factors that don't directly affect Dr Reddys' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Dr Reddys' value and its price as these two are different measures arrived at by different means. Investors typically determine if Dr Reddys is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Dr Reddys' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.