Dr Reddy's LaboratoriesFRA:RDDA 92 Days Inventory is 222.89 as of Mar. 2026, which is 31% above its 10-year median of 169.65. GuruFocus rates FRA:RDDA with a GF Score™ of 92/100 and a GF Value™ of €12.74 (Fairly Valued). The stock has 5 warning signs investors should review. Among 919 Drug Manufacturers companies, Dr Reddy's Laboratories ranks worse than 58.54% on this metric.
The historical rank and industry rank for Dr Reddy's Laboratories's Days Inventory or its related term are showing as below:
FRA:RDDA'
s Days Inventory Range Over the Past 10 Years
Min: 155.45 Med: 169.65 Max: 184.81
Current: 184.81
During the past 13 years, Dr Reddy's Laboratories's highest Days Inventory was 184.81. The lowest was 155.45. And the median was 169.65.
FRA:RDDA's Days Inventory is ranked worse than 58.54% of 919
companies
in the Drug Manufacturers industry
Industry Median: 164.48
vs FRA:RDDA: 184.81
Dr Reddy's Laboratories's Days Inventory
declined
from Mar. 2025 (234.35) to Mar. 2026 (222.89).
Inventory Turnover measures how fast the company turns over its inventory within a year.
Dr Reddy's Laboratories's Inventory Turnover for the
three
months ended in Mar. 2026 was 0.41.
Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.
Dr Reddy's Laboratories's Inventory-to-Revenue for the
three
months ended in Mar. 2026 was 1.04.
Dr Reddy's Laboratories (FRA:RDDA) Days Inventory Explanation
Days Inventory indicates the liquidity of the inventory. Generally, a lower Days Inventory is preferred as it indicates a shorter duration to clear off the inventory. An increase of the ratio may indicate the company's sales slowed. Similar ratios related to Days Inventory are:
1. Inventory Turnover measures how fast the company turns over its inventory within a year.
Dr Reddy's Laboratories's Inventory Turnover for the
three
months ended in Mar. 2026 is calculated as
2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.
Dr Reddy's Laboratories's Inventory to Revenue for the
three
months ended in Mar. 2026 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
A lot of business are seasonable. It makes more sense to compare Days Inventory from the same period in the previous year instead of from the previous quarter.
Dr Reddy's Laboratories Days Inventory Related Terms
Dr Reddy's Laboratories Days Inventory Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Drug Manufacturers - Specialty & Generic subindustry, Dr Reddy's Laboratories's Days Inventory, along with its competitors' market caps and Days Inventory data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Dr Reddy's Laboratories Days Inventory vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Dr Reddy's Laboratories's Days Inventory distribution charts can be found below:
* The bar in red indicates where Dr Reddy's Laboratories's Days Inventory falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Dr Reddy's Laboratories (FRA:RDDA) has a Days Inventory of 222.89 as of Mar. 2026. Days inventory represents the average amount of days a company holds inventory before selling it. View historical data on Dr Reddy's Laboratories and its competitors. This is 31% above median its historical median of 169.65. Over the past decade, Dr Reddy's Laboratories' Days Inventory has ranged from 155.45 to 184.81. According to the industry distribution chart, Dr Reddy's Laboratories ranks #538 out of 919 companies in the Drug Manufacturers industry, placing it in the top 58.5%.
Is Dr Reddy's Laboratories' Days Inventory too high?
Dr Reddy's Laboratories' current Days Inventory of 222.89 is 31% above median its 10-year median of 169.65. Over the past 10 years, this metric has ranged from a low of 155.45 to a high of 184.81. The Drug Manufacturers industry median Days Inventory is 164.48. Dr Reddy's Laboratories' value of 222.89 is 35.5% above this industry median. Based on the distribution chart, Dr Reddy's Laboratories ranks #538 out of 919 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Dr Reddy's Laboratories has a GF Score™ of 92/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Dr Reddy's Laboratories' Days Inventory compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Dr Reddy's Laboratories ranks #538 out of 919 companies for Days Inventory. This places Dr Reddy's Laboratories in the lower half of its industry. The industry median Days Inventory is 164.48. Dr Reddy's Laboratories' value of 222.89 is 35.5% above this benchmark. Historically, Dr Reddy's Laboratories' own Days Inventory has ranged from 155.45 to 184.81 over the past decade. While the company's 10-year median is 169.65 vs. the industry median of 164.48, Dr Reddy's Laboratories has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Days Inventory for a Drug Manufacturers company?
The median Days Inventory among Drug Manufacturers companies is 164.48, based on 919 companies in the industry. Companies in the top quartile (top 25%) have a Days Inventory significantly above this median, while those in the bottom quartile fall well below. However, Days Inventory should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dr Reddy's Laboratories's current Days Inventory of 222.89 is 35.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Days Inventory mean?
A high Days Inventory can signal that a stock is expensive relative to its fundamentals. Days inventory represents the average amount of days a company holds inventory before selling it. View historical data on Dr Reddy's Laboratories and its competitors. For the Drug Manufacturers industry, the median Days Inventory is 164.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dr Reddy's Laboratories's current Days Inventory is 222.89, which is 31% above median its own 10-year median of 169.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dr Reddy's Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Dr Reddy's Laboratories (FRA:RDDA) is currently considered Fairly Valued. The stock's GF Value™ is €12.74, compared to a current price of €12.40 — trading 2.7% below its estimated fair value. The current Days Inventory is 222.89, which is 31% above median its 10-year median of 169.65 and 35.5% above the Drug Manufacturers industry median of 164.48. Dr Reddy's Laboratories' overall GF Score™ is 92/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Days Inventory calculated?
Days Inventory is calculated from a company's financial statements. For Dr Reddy's Laboratories (FRA:RDDA), the current Days Inventory is 222.89 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Dr Reddy's Laboratories (FRA:RDDA) Overvalued in 2026?
Based on GuruFocus' analysis, Dr Reddy's Laboratories stock appears to be undervalued.
The current stock price of €12.40 is trading 2.7% below its estimated GF Value™ of €12.74.
GuruFocus considers Dr Reddy's Laboratories to be Fairly Valued.
Key valuation signals for FRA:RDDA:
Days Inventory: 222.89 (31% above median its 10-year median of 169.65)
GF Value™: €12.74 vs. price of €12.40 (2.7% below fair value)
Industry Position: 35.5% above the Drug Manufacturers median (#538 of 919)
No single metric tells the full story. See the FRA:RDDA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dr. Reddy's is one of the largest generic drug manufacturers in the world. It has a significant presence in North America, a region that makes up roughly 40% of its generics sales, with other key markets being India (20%) and Europe (20%). Beyond simple generics, Dr. Reddy's also has a solid portfolio of injectables which make up 25% of its North America sales. In branded generic markets like India, Dr. Reddy's has established a compelling presence with its strong brand name and earned a top five spot in key therapeutic areas including oncology and gastroenterology. Dr. Reddy's also has an active pharmaceutical ingredient business that manufactures over 150 APIs and sells in over 75 countries.
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