Dr Reddy's LaboratoriesFRA:RDDA +3.33%91 Net Margin % is 2.94% as of Mar. 2026, which is 75% below its 10-year median of 11.70. GuruFocus rates FRA:RDDA with a GF Score™ of 91/100 and a GF Value™ of €13.16 (Fairly Valued). The stock has 5 warning signs investors should review. Among 956 Drug Manufacturers companies, Dr Reddy's Laboratories ranks better than 73.01% on this metric.
The historical rank and industry rank for Dr Reddy's Laboratories's Net Margin % or its related term are showing as below:
FRA:RDDA'
s Net Margin % Range Over the Past 10 Years
Min: 6.9 Med: 11.7 Max: 19.95
Current: 12.76
FRA:RDDA's Net Margin % is ranked better than 73.01% of 956
companies
in the Drug Manufacturers industry
Industry Median: 5.56
vs FRA:RDDA: 12.76
Dr Reddy's Laboratories (FRA:RDDA) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Dr Reddy's Laboratories Net Margin % Related Terms
Dr Reddy's Laboratories Net Margin % 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 Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Dr Reddy's Laboratories's Net Margin % distribution charts can be found below:
* The bar in red indicates where Dr Reddy's Laboratories's Net 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 (FRA:RDDA) has a Net Margin % of 2.94% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Dr Reddy's Laboratories and its competitors. This is 75% below median its historical median of 11.70. Over the past decade, Dr Reddy's Laboratories' Net Margin % has ranged from 6.90 to 19.95. According to the industry distribution chart, Dr Reddy's Laboratories ranks #258 out of 956 companies in the Drug Manufacturers industry, placing it in the top 27%.
Is Dr Reddy's Laboratories' Net Margin % too high?
Dr Reddy's Laboratories' current Net Margin % of 2.94% is 75% below median its 10-year median of 11.70. Over the past 10 years, this metric has ranged from a low of 6.90 to a high of 19.95. The Drug Manufacturers industry median Net Margin % is 5.56. Dr Reddy's Laboratories' value of 2.94% is 47.1% below this industry median. Based on the distribution chart, Dr Reddy's Laboratories ranks #258 out of 956 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Dr Reddy's Laboratories has a GF Score™ of 91/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Dr Reddy's Laboratories' Net Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Dr Reddy's Laboratories ranks #258 out of 956 companies for Net Margin %. This puts Dr Reddy's Laboratories in the upper half of its industry. The industry median Net Margin % is 5.56. Dr Reddy's Laboratories' value of 2.94% is 47.1% below this benchmark. Historically, Dr Reddy's Laboratories' own Net Margin % has ranged from 6.90 to 19.95 over the past decade. While the company's 10-year median is 11.70 vs. the industry median of 5.56, Dr Reddy's Laboratories has consistently been below 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 Net Margin % for a Drug Manufacturers company?
The median Net Margin % among Drug Manufacturers companies is 5.56, based on 956 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dr Reddy's Laboratories's current Net Margin % of 2.94% is 47.1% below 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Dr Reddy's Laboratories and its competitors. For the Drug Manufacturers industry, the median Net Margin % is 5.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dr Reddy's Laboratories's current Net Margin % is 2.94%, which is 75% below median its own 10-year median of 11.70. 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 Net Margin % is 2.94%, which is 75% below median its 10-year median of 11.70 and 47.1% below the Drug Manufacturers industry median of 5.56. Dr Reddy's Laboratories' overall GF Score™ is 91/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Dr Reddy's Laboratories (FRA:RDDA), the current Net Margin % is 2.94% 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 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:
Net Margin %: 2.94% (75% below median its 10-year median of 11.70)
GF Value™: €13.16 vs. price of €12.40 (5.8% below fair value)
Industry Position: 47.1% below the Drug Manufacturers median (#258 of 956)
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.
91GF Score
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