Is Dr Reddy's (DRREDDY) Halal?
Shariah Screening — 5 Standards
Based on financial data from March 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 4.3% / 30% | 5.3% / 30% | 10.1% / 30% | 0.82% / 5% | ✓ HALAL |
| DJIM | 4.3% / 33% | 5.3% / 33% | 10.1% / 33% | 0.82% / 5% | ✓ HALAL |
| MSCI | 9.5% / 33% | 11.7% / 33% | 22.3% / 33% | 0.82% / 5% | ✓ HALAL |
| S&P | 4.3% / 33% | 5.3% / 33% | 10.1% / 33% | 0.82% / 5% | ✓ HALAL |
| FTSE | 9.5% / 33% | 11.7% / 33% | 22.3% / 50% | 0.82% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 55.2% | |
| Operating Margin | 16.4% | |
| Net Margin | 16.4% | |
| Return on Equity (ROE) | 16.1% | |
| Return on Assets (ROA) | 8.0% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $46.4B |
| Free Cash Flow | $12.0B |
| Total Debt | $46.8B |
| Debt-to-Equity | 18.0 |
| Current Ratio | 1.9 |
| Total Assets | $493.0B |
Price & Trading
| Last Close | INR 1,300.70 |
| 50-Day MA | INR 1,264.27 |
| 200-Day MA | INR 1,260.24 |
| Avg Volume | 1.6M |
| Beta | 0.3 |
|
52-Week Range
INR 1,020.00
| |
About Dr Reddy's (DRREDDY)
Dr. Reddy's Laboratories Limited, together with its subsidiaries, operates as an integrated pharmaceutical company North America, Europe, India, Russia, and internationally. It operates through Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Others segment. The Global Generics segment manufactures and markets prescription and over-the-counter finished pharmaceutical products that are marketed under a brand name or as a generic finished dosages with therapeutic equivalence to branded formulations, as well as engages in the biologics business. The PSAI segment manufactures and markets active pharmaceutical ingredients and intermediates, which are principal ingredients for finished pharmaceutical products. This segment also provides contract research services; and manufactures and sells active pharmaceutical ingredients and steroids with the customer requirements. The Others segment engages in developing therapies in the fields of oncology and inflammation; and research and development of differentiated formulations. The company offers its products for various therapeutic categories, including gastro-intestinal, cardiovascular, anti-diabetic, dermatology, oncology, respiratory, stomatology, urology, and nephrology, vaccines and pain management. Dr. Reddy's Laboratories Limited was incorporated in 1984 and is headquartered in Hyderabad, India.
Purification Calculator
As a halal stock with 0.82% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Dr Reddy's (DRREDDY) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Dr Reddy's is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is Dr Reddy's's debt ratio?
Dr Reddy's's debt ratio is 4.3% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 9.5%.
Does Dr Reddy's require dividend purification?
Yes, Dr Reddy's has an impermissible income ratio of 0.82%, which means 0.82% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are Dr Reddy's's key financial metrics?
Dr Reddy's has a market capitalization of $1.1T, trailing P/E ratio of 18.9, and revenue of $325.5B. The company maintains a gross margin of 55.2% and a net margin of 16.4%. Return on equity stands at 16.1%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.