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Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Dr Reddy's Laboratories's 10-Year RORE % for the quarter that ended in Jun. 2026 was 5.57%.
The industry rank for Dr Reddy's Laboratories's 10-Year RORE % or its related term are showing as below:
FRA:RDDA's 10-Year RORE % is ranked better than 55.46% of 669
companies
in the Drug Manufacturers industry
Industry Median: 6.44
vs FRA:RDDA: 5.57
Dr Reddy's Laboratories (FRA:RDDA) 10-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 10-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Dr Reddy's Laboratories 10-Year RORE % Related Terms
Dr Reddy's Laboratories 10-Year RORE % 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 10-Year RORE %, along with its competitors' market caps and 10-Year RORE % 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 10-Year RORE % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Dr Reddy's Laboratories's 10-Year RORE % distribution charts can be found below:
* The bar in red indicates where Dr Reddy's Laboratories's 10-Year RORE % 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.
In the calculation of 10-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Jun. 2026 and 10-year before.
Dr Reddy's Laboratories (FRA:RDDA) has a 10-Year RORE % of 5.57 as of Jun. 2026. 10-Year RORE % shows how much a company earns by reinvesting its retained earnings in 10-year. View historical data on Dr Reddy's Laboratories and its competitors. According to the industry distribution chart, Dr Reddy's Laboratories ranks #298 out of 669 companies in the Drug Manufacturers industry, placing it in the top 44.5%.
Is Dr Reddy's Laboratories' 10-Year RORE % too high?
Dr Reddy's Laboratories' current 10-Year RORE % is 5.57. The Drug Manufacturers industry median 10-Year RORE % is 6.44. Dr Reddy's Laboratories' value of 5.57 is 13.5% below this industry median. Based on the distribution chart, Dr Reddy's Laboratories ranks #298 out of 669 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Dr Reddy's Laboratories has a GF Score™ of 93/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Dr Reddy's Laboratories' 10-Year RORE % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Dr Reddy's Laboratories ranks #298 out of 669 companies for 10-Year RORE %. This puts Dr Reddy's Laboratories in the upper half of its industry. The industry median 10-Year RORE % is 6.44. Dr Reddy's Laboratories' value of 5.57 is 13.5% 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 10-Year RORE % for a Drug Manufacturers company?
The median 10-Year RORE % among Drug Manufacturers companies is 6.44, based on 669 companies in the industry. Companies in the top quartile (top 25%) have a 10-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 10-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dr Reddy's Laboratories's current 10-Year RORE % of 5.57 is 13.5% 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 10-Year RORE % mean?
A high 10-Year RORE % can signal that a stock is expensive relative to its fundamentals. 10-Year RORE % shows how much a company earns by reinvesting its retained earnings in 10-year. View historical data on Dr Reddy's Laboratories and its competitors. For the Drug Manufacturers industry, the median 10-Year RORE % is 6.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dr Reddy's Laboratories's current 10-Year RORE % is 5.57. 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 €11.49, compared to a current price of €9.85 — trading 14.3% below its estimated fair value. The current 10-Year RORE % is 5.57 and 13.5% below the Drug Manufacturers industry median of 6.44. Dr Reddy's Laboratories' overall GF Score™ is 93/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 10-Year RORE % calculated?
10-Year RORE % is calculated from a company's financial statements. For Dr Reddy's Laboratories (FRA:RDDA), the current 10-Year RORE % is 5.57 as of Jun. 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 €9.85 is trading 14.3% below its estimated GF Value™ of €11.49.
GuruFocus considers Dr Reddy's Laboratories to be Modestly Undervalued.
Key valuation signals for FRA:RDDA:
10-Year RORE %: 5.57
GF Value™: €11.49 vs. price of €9.85 (14.3% below fair value)
Industry Position: 13.5% below the Drug Manufacturers median (#298 of 669)
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.
93GF Score
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