Rubicon Deep-Dive
DRREDDY · NSE · Hyderabad

Dr. Reddy's Laboratories

Vertically integrated generics major with a strong US complex-generics pipeline, growing biosimilars, and an API/services (PSAI) arm. Pursuing nutrition/consumer and GLP-1 opportunities.

Reported data + modeled fieldsDiversified
What this shows

A full research profile for one company — what it does, how its financials have trended, how the market values it, and a balanced bull/bear/base investment memo.

How to use it

Scan the top row for the headline numbers, read the charts for trends, check the three gauge scores, then read the auto-generated memo at the bottom. Sources for every figure are linked at the very bottom.

Key terms
EBITDA
Earnings before interest, tax, depreciation & amortisation — a proxy for operating cash profit.
PAT
Profit After Tax — the bottom-line net profit.
FCF
Free Cash Flow — cash left after running the business and capital spending.
ANDA
Abbreviated New Drug Application — the US FDA filing to sell a generic drug.
Market Cap
₹1.1L Cr
Revenue
₹32.6K Cr
+4.0%5Y CAGR
EBITDA Margin
26%
ROCE
13.6%
P/E
25x
13.0x EV/EBITDA
5Y Return
+4%

Revenue

₹ crore · FY

EBITDA

₹ crore · FY

Margins

EBITDA & PAT margin %

R&D Spend

₹ crore · FY

Free Cash Flow

₹ crore · FY

Revenue Mix

By geography / segment

Quality Score

Growth Score

Regulatory Risk

Snapshot

Sub-segmentUS Generics + Biosimilars + India
Facilities23
D/E0.20
R&D % sales8.4%
FDA observations4

Business Model

How the company makes money

US generics, India branded, PSAI (API/services), emerging biosimilars & GLP-1 pipeline.

Growth driver

gRevlimid wind-down replacement + biosimilars + GLP-1

Primary risk

US base business erosion post-Revlimid

Peer Group

Click to compare

PeerRev CAGREBITDA%ROCEP/E
Dr. Reddy's Laboratories4%26%13.6%25x
Sun Pharmaceutical Industries22%29%20.5%35x
Cipla7%26%23%29x
Lupin25%23%30.3%18x
Zydus Lifesciences12%30%24%20x
Aurobindo Pharma8%20%13%23x

Investment Memo

Auto-generated from the data layer — illustrative, not advice

Bull case
  • gRevlimid wind-down replacement + biosimilars + GLP-1 underpins a 4% 5Y revenue CAGR.
  • Premium 26% EBITDA margin with 13.6% ROCE signals durable economics.
  • Capacity already in place to support the next growth phase.
Bear case
  • US base business erosion post-Revlimid.
  • ~45% US exposure leaves earnings sensitive to price erosion and FDA action.
  • Re-rating depends on proving R&D/return discipline.
Base case

Dr. Reddy's Laboratories screens as a high-quality diversified franchise. With revenue of ₹32.6K Cr growing ~4% and 26% EBITDA margins, the base case is steady compounding driven by grevlimid wind-down replacement + biosimilars + glp-1, while watching us base business erosion post-revlimid.

Valuation view

Trades at 25x P/E, 13.0x EV/EBITDA and 2.8x P/B. Reasonable versus growth — re-rating optionality if execution improves.

What to track
  • 1 USFDA facility status & ANDA approval cadence
  • 2 Gross-margin trajectory & new-launch contribution
  • 3 R&D productivity (filings/approvals per ₹ of R&D)
  • 4 Capital allocation — capex payback & M&A discipline
Sources & provenance · FY25 / mid-2026

Mix derived from FY25 segment revenues (NA, EMs, India, Europe→RoW, PSAI). Cumulative ANDA count not cleanly disclosed.