Dr Reddys Return On Asset vs. Revenue
| RDY Stock | USD 14.20 0.21 1.50% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.43 | 0.5861 |
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| Net Profit Margin | 0.21 | 0.1995 |
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| Operating Profit Margin | 0.25 | 0.2426 |
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| Pretax Profit Margin | 0.27 | 0.2569 |
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| Return On Assets | 0.15 | 0.1437 |
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| Return On Equity | 0.1 | 0.1985 |
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For Dr Reddys profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Dr Reddys to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Dr Reddys Laboratories utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Dr Reddys's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Dr Reddys Laboratories over time as well as its relative position and ranking within its peers.
RDY |
Is Pharmaceuticals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Dr Reddys. If investors know RDY will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Dr Reddys listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.15) | Dividend Share 8 | Earnings Share 0.78 | Revenue Per Share 60.1437 | Quarterly Revenue Growth 0.165 |
The market value of Dr Reddys Laboratories is measured differently than its book value, which is the value of RDY that is recorded on the company's balance sheet. Investors also form their own opinion of Dr Reddys' value that differs from its market value or its book value, called intrinsic value, which is Dr Reddys' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Dr Reddys' market value can be influenced by many factors that don't directly affect Dr Reddys' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Dr Reddys' value and its price as these two are different measures arrived at by different means. Investors typically determine if Dr Reddys is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Dr Reddys' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Dr Reddys Laboratories Revenue vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Dr Reddys's current stock value. Our valuation model uses many indicators to compare Dr Reddys value to that of its competitors to determine the firm's financial worth. Dr Reddys Laboratories is currently regarded as top stock in return on asset category among its peers. It also is currently regarded number one company in revenue category among its peers totaling about 2,684,269,230,769 of Revenue per Return On Asset. At this time, Dr Reddys' Total Revenue is fairly stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Dr Reddys' earnings, one of the primary drivers of an investment's value.RDY Revenue vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Dr Reddys |
| = | 0.1 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Dr Reddys |
| = | 279.16 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
RDY Revenue vs Competition
Dr Reddys Laboratories is currently regarded number one company in revenue category among its peers. Market size based on revenue of Health Care industry is at this time estimated at about 287.04 Billion. Dr Reddys totals roughly 279.16 Billion in revenue claiming about 97% of equities under Health Care industry.
Dr Reddys Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Dr Reddys, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Dr Reddys will eventually generate negative long term returns. The profitability progress is the general direction of Dr Reddys' change in net profit over the period of time. It can combine multiple indicators of Dr Reddys, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 4 B | 3.8 B | |
| Operating Income | 67.7 B | 71.1 B | |
| Income Before Tax | 71.9 B | 75.5 B | |
| Net Income Applicable To Common Shares | 51.8 B | 54.4 B | |
| Net Income | 55.7 B | 58.5 B | |
| Income Tax Expense | 16.2 B | 17 B | |
| Total Other Income Expense Net | 4.1 B | 4.3 B | |
| Net Income From Continuing Ops | 55.7 B | 58.5 B | |
| Interest Income | 2.3 B | 2.2 B | |
| Net Interest Income | 567 M | 327 M | |
| Change To Netincome | 7.6 B | 8 B | |
| Net Income Per Share | 66.93 | 57.36 | |
| Income Quality | 0.81 | 0.77 | |
| Net Income Per E B T | 0.78 | 0.99 |
RDY Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Dr Reddys. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Dr Reddys position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Dr Reddys' important profitability drivers and their relationship over time.
Use Dr Reddys in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Dr Reddys position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dr Reddys will appreciate offsetting losses from the drop in the long position's value.Dr Reddys Pair Trading
Dr Reddys Laboratories Pair Trading Analysis
The ability to find closely correlated positions to Dr Reddys could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Dr Reddys when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Dr Reddys - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Dr Reddys Laboratories to buy it.
The correlation of Dr Reddys is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Dr Reddys moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Dr Reddys Laboratories moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Dr Reddys can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Dr Reddys position
In addition to having Dr Reddys in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Tools for RDY Stock Analysis
When running Dr Reddys' price analysis, check to measure Dr Reddys' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Dr Reddys is operating at the current time. Most of Dr Reddys' value examination focuses on studying past and present price action to predict the probability of Dr Reddys' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Dr Reddys' price. Additionally, you may evaluate how the addition of Dr Reddys to your portfolios can decrease your overall portfolio volatility.