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3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Dr Reddy's Laboratories's 3-Year ROIIC % for the quarter that ended in Mar. 2026 was -2.43%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Dr Reddy's Laboratories's 3-Year ROIIC % or its related term are showing as below:
FRA:RDDA's 3-Year ROIIC % is ranked worse than 60.72% of 947
companies
in the Drug Manufacturers industry
Industry Median: 3.7
vs FRA:RDDA: -2.43
Dr Reddy's Laboratories (FRA:RDDA) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Dr Reddy's Laboratories 3-Year ROIIC % Related Terms
Dr Reddy's Laboratories 3-Year ROIIC % 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 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Dr Reddy's Laboratories's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Dr Reddy's Laboratories's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Dr Reddy's Laboratories (FRA:RDDA) has a 3-Year ROIIC % of -2.43 as of Mar. 2026. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Dr Reddy's Laboratories and its competitors. According to the industry distribution chart, Dr Reddy's Laboratories ranks #575 out of 947 companies in the Drug Manufacturers industry, placing it in the top 60.7%.
Is Dr Reddy's Laboratories' 3-Year ROIIC % too high?
Dr Reddy's Laboratories' current 3-Year ROIIC % is -2.43. Based on the distribution chart, Dr Reddy's Laboratories ranks #575 out of 947 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Dr Reddy's Laboratories has a GF Score™ of 92/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Dr Reddy's Laboratories' 3-Year ROIIC % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Dr Reddy's Laboratories ranks #575 out of 947 companies for 3-Year ROIIC %. This places Dr Reddy's Laboratories in the lower half of its industry. The industry median 3-Year ROIIC % is 3.70. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Drug Manufacturers company?
The median 3-Year ROIIC % among Drug Manufacturers companies is 3.70, based on 947 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Dr Reddy's Laboratories and its competitors. For the Drug Manufacturers industry, the median 3-Year ROIIC % is 3.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dr Reddy's Laboratories's current 3-Year ROIIC % is -2.43. 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 Modestly Undervalued. The stock's GF Value™ is €12.94, compared to a current price of €11.10 — trading 14.2% below its estimated fair value. The current 3-Year ROIIC % is -2.43. Dr Reddy's Laboratories' overall GF Score™ is 92/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Dr Reddy's Laboratories (FRA:RDDA), the current 3-Year ROIIC % is -2.43 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 €11.10 is trading 14.2% below its estimated GF Value™ of €12.94.
GuruFocus considers Dr Reddy's Laboratories to be Modestly Undervalued.
Key valuation signals for FRA:RDDA:
3-Year ROIIC %: -2.43
GF Value™: €12.94 vs. price of €11.10 (14.2% 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.
92GF Score
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