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* 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 FCF Margin %, along with its competitors' market caps and FCF Margin % 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 FCF Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Dr Reddy's Laboratories's FCF Margin % distribution charts can be found below:
* The bar in red indicates where Dr Reddy's Laboratories's FCF Margin % 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 (BSP:R1DY34) has a FCF Margin % of -5.74% as of Jun. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Dr Reddy's Laboratories and its competitors. According to the industry distribution chart, Dr Reddy's Laboratories ranks #471 out of 963 companies in the Drug Manufacturers industry, placing it in the top 48.9%.
Is Dr Reddy's Laboratories' FCF Margin % too high?
Dr Reddy's Laboratories' current FCF Margin % is -5.74%. Based on the distribution chart, Dr Reddy's Laboratories ranks #471 out of 963 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Dr Reddy's Laboratories has a GF Score™ of 93/100, reflecting its overall financial health beyond just this single metric.
How does Dr Reddy's Laboratories' FCF Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Dr Reddy's Laboratories ranks #471 out of 963 companies for FCF Margin %. This puts Dr Reddy's Laboratories in the upper half of its industry. The industry median FCF Margin % is 2.58. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Margin % for a Drug Manufacturers company?
The median FCF Margin % among Drug Manufacturers companies is 2.58, based on 963 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Dr Reddy's Laboratories and its competitors. For the Drug Manufacturers industry, the median FCF Margin % is 2.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dr Reddy's Laboratories's current FCF Margin % is -5.74%. 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?
Dr Reddy's Laboratories (BSP:R1DY34) has a current FCF Margin % of -5.74%. The stock's GF Value™ is R$14.30, compared to a current price of R$12.10 — trading 15.4% below its estimated fair value. The current FCF Margin % is -5.74%. Dr Reddy's Laboratories' overall GF Score™ is 93/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For Dr Reddy's Laboratories (BSP:R1DY34), the current FCF Margin % is -5.74% as of Jun. 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 (BSP:R1DY34) Overvalued in 2026?
Based on GuruFocus' analysis, Dr Reddy's Laboratories stock appears to be undervalued.
The current stock price of R$12.10 is trading 15.4% below its estimated GF Value™ of R$14.30.
Key valuation signals for BSP:R1DY34:
FCF Margin %: -5.74%
GF Value™: R$14.30 vs. price of R$12.10 (15.4% below fair value)
No single metric tells the full story. See the BSP:R1DY34 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.
93GF Score
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