Dr Reddy's Laboratories Ltd

RDY

Compliant
Exchange
Sector
Headquarters
Group
NYSE
Healthcare
India
Large cap

Dr Reddy’s Laboratories Ltd is Shariah Compliant. It passes 4/5 Shariah standards we screen against.

0.96%

Impure Income*

$0.053

Purification*

$0.279

Zakat*

Financials

Market cap Group
Analysts' Rating
Price Target (Mean)
Price Target (Low)
Price Target (High)
Total Analysts
Large cap
BUY
$85.72
$78.15
$92.00
5
Revenue Growth
Operating Margin
Net Profit Margin
Quick Ratio
Current Ratio
EPS Growth
12.14%
23.36%
18.14%
1.90
2.55
6.21%

Shariah Compliance

  • Updated on September 12, 2024
Debt
2.64%
✓
Non-Compliant Assets
8.02%
✓
Impure Income
0.96%
✓

AAOIFI Rulebook:

  • Non-compliant Liabilities (like Interest-based Debt) < 30% of Market cap
  • Non-compliant Assets (like Interest-based Investments) < 30% of Market cap
  • Impure Revenues (incl. Interest Income) < 5% of Total Revenues

Source: AAOIFI SS21

Debt
3.52%
✓
Impure Income
0.96%
✓

S&P Sharia Rulebook:

  • Interest-based Debt < 33% of 36-mo avg. Market cap
  • Impure Revenues (incl. Interest Income) < 5% of Total Revenues

Source: S&P Shariah Methodology

Debt
3.38%
✓
Impure Income
0.96%
✓

Dow Jones Islamic Market (DJIM) Rulebook:

  • Interest-based Debt < 33% of 24-mo avg. Market cap
  • Impure Revenues (incl. Interest Income) < 5% of Total Revenues

Source: DJIM Methodology

Debt
7.39%
✓
Cash
22.49%
✓
Cash & AR
42.36%
✓
Impure Income
0.96%
✓

FTSE Shariah Rulebook:

  • Interest-based Debt < 33.33% of Total Assets
  • Cash and interest-bearing items < 33.33% of Total Assets
  • Accounts receivable and cash < 50% of Total Assets
  • Impure Revenues (incl. Interest Income) < 5% of Total Revenues

Source: FTSE RUSSELL

Debt
7.39%
✓
Cash
22.49%
✓
Cash & AR
42.36%
✗
Impure Income
0.96%
✓

MSCI Islamic Rulebook:

  • Interest-based Debt < 33.33% of Total Assets
  • Cash and interest-bearing items < 33.33% of Total Assets
  • Accounts receivable and cash < 33.33% of Total Assets
  • Impure Revenues (incl. Interest Income) < 5% of Total Revenues

Source: MSCI Islamic Indexes

Impure Income Breakdown

-
-
Interest Income
0.96%

Note on Purification and Zakat:

  • Purification and Zakat (for long-term investing) calculations are in USD per share and based on AAOIFI methodology. AAOIFI requires purification every financial period (e.g. quarterly). 
  • If you follow S&P Shariah’s Dividend-only purification, then remove the impure income % from the dividends you receive. No purification required for non-dividend paying stocks, according to S&P Shariah.
  • For Zakat, if you did not invest in a company from a long term perspective, then consider the shares as trading goods and give 2.5% of the total value if a year has passed on them. 

Company Profile

Dr. Reddy’s Laboratories Limited is an India-based pharmaceutical company. Its products and services are spread across its core businesses of active pharmaceutical ingredients (APIs), generics, branded generics, biosimilars and over-the-counter (OTC) pharmaceutical products. It works in the areas of gastrointestinal, cardiovascular, diabetology, oncology, pain management and dermatology. Its segments consist of Global Generics; Pharmaceutical Services and Active Ingredients (PSAI), and Others. The Global Generics segment consists of the Company’s business of manufacturing and marketing prescription and over-the-counter finished pharmaceutical products ready for consumption by the patient, marketed under a brand name (branded formulations) or as generic finished dosages with therapeutic equivalence to branded formulations (generics). The Pharmaceutical Services and Active Ingredients segment consists of the Company’s business of manufacturing and marketing APIs and intermediates.

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