Dr Reddy's Laboratories (FRA:RDDA) ROCE %: 2.97% (As of Mar. 2026)


FRA:RDDA Dr Reddy's Laboratories Ltd FRA:RDDA
91 GF Score
Price €13.20
GF Value €13.78
Valuation Fairly Valued
! 5 Warning Signs
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What is Dr Reddy's Laboratories ROCE %?

Dr Reddy's Laboratories FRA:RDDA +3.12% 91 ROCE % is 2.97% as of Mar. 2026. GuruFocus rates FRA:RDDA with a GF Score™ of 91/100 and a GF Value™ of €13.78 (Fairly Valued). The stock has 5 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Dr Reddy's Laboratories's annualized ROCE % for the quarter that ended in Mar. 2026 was 2.97%.

Dr Reddy's Laboratories  (FRA:RDDA) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Dr Reddy's Laboratories ROCE % Related Terms

Dr Reddy's Laboratories ROCE % Historical Data

* Premium members only.

The historical data trend for Dr Reddy's Laboratories's ROCE % can be seen below:

* 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 ROCE % Chart

Dr Reddy's Laboratories Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.73 27.79 27.60 23.95 14.15

Dr Reddy's Laboratories Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 22.71 20.90 19.61 16.33 2.97
FRA:RDDA
91GF Score
Dr Reddy's Laboratories Ltd FRA:RDDA
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Dr Reddy's Laboratories ROCE % Calculation

Dr Reddy's Laboratories's annualized ROCE % for the fiscal year that ended in Mar. 2026 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=545.691/( ( (5270.544 - 1394.02) + (5399.095 - 1561.597) )/ 2 )
=545.691/( (3876.524+3837.498)/ 2 )
=545.691/3857.011
=14.15 %

Dr Reddy's Laboratories's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=113.844/( ( (5339.21 - 1501.602) + (5399.095 - 1561.597) )/ 2 )
=113.844/( ( 3837.608 + 3837.498 )/ 2 )
=113.844/3837.553
=2.97 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 2.97% mean?
Dr Reddy's Laboratories (FRA:RDDA) has a ROCE % of 2.97% as of Mar. 2026.
Is Dr Reddy's Laboratories' ROCE % too high?
Dr Reddy's Laboratories' current ROCE % is 2.97%. The Drug Manufacturers industry median ROCE % is 7.00. Dr Reddy's Laboratories' value of 2.97% is 57.5% below this industry median. 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' ROCE % compare to ZTS?
Dr Reddy's Laboratories' ROCE % of 2.97% can be compared against companies in the Drug Manufacturers industry. The industry median ROCE % is 7.00. Dr Reddy's Laboratories' value of 2.97% is 57.5% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Drug Manufacturers company?
The median ROCE % among Drug Manufacturers companies is 7.00, based on 958 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dr Reddy's Laboratories's current ROCE % of 2.97% is 57.5% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Drug Manufacturers industry, the median ROCE % is 7.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dr Reddy's Laboratories's current ROCE % is 2.97%. 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 €13.78, compared to a current price of €13.20 — trading 4.2% below its estimated fair value. The current ROCE % is 2.97% and 57.5% below the Drug Manufacturers industry median of 7.00. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Dr Reddy's Laboratories (FRA:RDDA), the current ROCE % is 2.97% 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 €13.20 is trading 4.2% below its estimated GF Value™ of €13.78. GuruFocus considers Dr Reddy's Laboratories to be Fairly Valued.

Key valuation signals for FRA:RDDA:

  • ROCE %: 2.97%
  • GF Value™: €13.78 vs. price of €13.20 (4.2% below fair value)
  • GF Score™: 91/100 with 5 warning signs
  • Industry Position: 57.5% below the Drug Manufacturers median

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 Laboratories Business Description

Address 8-2-337, Road No. 3, Banjara Hills, Hyderabad, TG, IND, 500 034
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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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€13.20
Price
€13.78
GF Value