Dr Reddy's LaboratoriesFRA:RDDA +0.76%91 Pretax Margin % is 2.66% as of Mar. 2026, which is 82% below its 10-year median of 14.83. GuruFocus rates FRA:RDDA with a GF Score™ of 91/100 and a GF Value™ of €13.62 (Fairly Valued). The stock has 5 warning signs investors should review. Among 952 Drug Manufacturers companies, Dr Reddy's Laboratories ranks better than 73.32% on this metric.
The historical rank and industry rank for Dr Reddy's Laboratories's Pretax Margin % or its related term are showing as below:
FRA:RDDA'
s Pretax Margin % Range Over the Past 10 Years
Min: 10.1 Med: 14.83 Max: 25.74
Current: 16.32
FRA:RDDA's Pretax Margin % is ranked better than 73.32% of 952
companies
in the Drug Manufacturers industry
Industry Median: 7.295
vs FRA:RDDA: 16.32
Dr Reddy's Laboratories (FRA:RDDA) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Dr Reddy's Laboratories Pretax Margin % Related Terms
Dr Reddy's Laboratories Pretax 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 Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Dr Reddy's Laboratories's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Dr Reddy's Laboratories's Pretax 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 Pretax Margin % of 2.66% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Dr Reddy's Laboratories and its competitors. This is 82% below median its historical median of 14.83. Over the past decade, Dr Reddy's Laboratories' Pretax Margin % has ranged from 10.10 to 25.74. According to the industry distribution chart, Dr Reddy's Laboratories ranks #254 out of 952 companies in the Drug Manufacturers industry, placing it in the top 26.7%.
Is Dr Reddy's Laboratories' Pretax Margin % too high?
Dr Reddy's Laboratories' current Pretax Margin % of 2.66% is 82% below median its 10-year median of 14.83. Over the past 10 years, this metric has ranged from a low of 10.10 to a high of 25.74. The Drug Manufacturers industry median Pretax Margin % is 7.30. Dr Reddy's Laboratories' value of 2.66% is 63.5% below this industry median. Based on the distribution chart, Dr Reddy's Laboratories ranks #254 out of 952 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' Pretax Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Dr Reddy's Laboratories ranks #254 out of 952 companies for Pretax Margin %. This puts Dr Reddy's Laboratories in the upper half of its industry. The industry median Pretax Margin % is 7.30. Dr Reddy's Laboratories' value of 2.66% is 63.5% below this benchmark. Historically, Dr Reddy's Laboratories' own Pretax Margin % has ranged from 10.10 to 25.74 over the past decade. While the company's 10-year median is 14.83 vs. the industry median of 7.30, 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 Pretax Margin % for a Drug Manufacturers company?
The median Pretax Margin % among Drug Manufacturers companies is 7.30, based on 952 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dr Reddy's Laboratories's current Pretax Margin % of 2.66% is 63.5% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Dr Reddy's Laboratories and its competitors. For the Drug Manufacturers industry, the median Pretax Margin % is 7.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dr Reddy's Laboratories's current Pretax Margin % is 2.66%, which is 82% below median its own 10-year median of 14.83. 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 €13.62, compared to a current price of €13.30 — trading 2.3% below its estimated fair value. The current Pretax Margin % is 2.66%, which is 82% below median its 10-year median of 14.83 and 63.5% below the Drug Manufacturers industry median of 7.30. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Dr Reddy's Laboratories (FRA:RDDA), the current Pretax Margin % is 2.66% 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 €13.30 is trading 2.3% below its estimated GF Value™ of €13.62.
GuruFocus considers Dr Reddy's Laboratories to be Fairly Valued.
Key valuation signals for FRA:RDDA:
Pretax Margin %: 2.66% (82% below median its 10-year median of 14.83)
GF Value™: €13.62 vs. price of €13.30 (2.3% below fair value)
Industry Position: 63.5% below the Drug Manufacturers median (#254 of 952)
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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