The zones of discrimination for M-Score is as such:
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Good Sign:
Beneish M-Score -2.55 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for Dr Reddy's Laboratories's Beneish M-Score or its related term are showing as below:
FRA:RDDA'
s Beneish M-Score Range Over the Past 10 Years
Min: -2.77 Med: -2.5 Max: -2
Current: -2.55
During the past 13 years, the highest Beneish M-Score of Dr Reddy's Laboratories was -2.00. The lowest was -2.77. And the median was -2.50.
Dr Reddy's Laboratories Beneish M-Score Related Terms
Dr Reddy's Laboratories Beneish M-Score 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 Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Dr Reddy's Laboratories's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Dr Reddy's Laboratories's Beneish M-Score falls into.
Dr Reddy's Laboratories Beneish M-Score Calculation
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.
The M-Score Variables:
The M-score of Dr Reddy's Laboratories for today is based on a combination of the following eight different indices:
M
=
-4.84
+
0.92 * DSRI
+
0.528 * GMI
+
0.404 * AQI
+
0.892 * SGI
+
0.115 * DEPI
=
-4.84
+
0.92 * 1.0759
+
0.528 * 1.1034
+
0.404 * 0.9467
+
0.892 * 0.909
+
0.115 * 0.9783
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 1.0739
+
4.679 * -0.034541
-
0.327 * 1.1064
=
-2.67
* 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.
Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.
DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.
DEPI
=
(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))
/
(Depreciation_t / (Depreciaton_t + PPE_t))
=
(186.878 / (186.878 + 1045.163))
/
(198.242 / (198.242 + 1080.386))
=
0.151682
/
0.155043
=
0.9783
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
TATA
=
(IncomefromContinuingOperations_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(NetIncome_t - NonOperatingIncome_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(417.119 - 56.427
-
547.184)
/
5399.095
=
-0.034541
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Dr Reddy's Laboratories has a M-score of -2.67 suggests that the company is unlikely to be a manipulator.
Dr Reddy's Laboratories (FRA:RDDA) has a Beneish M-Score of -2.55 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Dr Reddy's Laboratories and its competitors. According to the industry distribution chart, Dr Reddy's Laboratories ranks #414 out of 911 companies in the Drug Manufacturers industry, placing it in the top 45.4%.
Is Dr Reddy's Laboratories' Beneish M-Score too high?
Dr Reddy's Laboratories' current Beneish M-Score is -2.55. Based on the distribution chart, Dr Reddy's Laboratories ranks #414 out of 911 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Dr Reddy's Laboratories has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Dr Reddy's Laboratories' Beneish M-Score compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Dr Reddy's Laboratories ranks #414 out of 911 companies for Beneish M-Score. This puts Dr Reddy's Laboratories in the upper half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Drug Manufacturers company?
A good Beneish M-Score depends on the Drug Manufacturers industry context. However, Beneish M-Score 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 Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Dr Reddy's Laboratories and its competitors. Dr Reddy's Laboratories's current Beneish M-Score is -2.55. 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 €13.16, compared to a current price of €12.40 — trading 5.8% below its estimated fair value. The current Beneish M-Score is -2.55. Dr Reddy's Laboratories' overall GF Score™ is 82/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Dr Reddy's Laboratories (FRA:RDDA), the current Beneish M-Score is -2.55 as of Jun. 25, 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 5.8% below its estimated GF Value™ of €13.16.
GuruFocus considers Dr Reddy's Laboratories to be Fairly Valued.
Key valuation signals for FRA:RDDA:
Beneish M-Score: -2.55
GF Value™: €13.16 vs. price of €12.40 (5.8% below fair value)
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.
82GF Score
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