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Last Updated: April 2, 2026, 2:50 am
Author: Getaka|Social: XLinkedIn
Stock Ticker - BSE: 500124 | NSE: DRREDDY

Dr Reddys Laboratories Ltd: Intrinsic Value & Share Price Analysis

Fair Value

₹1,133.40Fairly Valued by 6.33%vs CMP ₹1,210.00

P/E (18.1) × ROE (18.0%) × BV (₹432.00) × DY (0.66%)

₹949.28Overvalued by 21.55%vs CMP ₹1,210.00
MoS: -27.5% (Negative)Confidence: 53/100 (Moderate)Models: 2 Under, 1 Fair, 6 Over
ModelCategoryValueWeightSignal
PE-ROEEarnings₹1,366.0723%Under (+12.9%)
Graham NumberEarnings₹805.3117%Over (-33.4%)
Earnings PowerEarnings₹471.5611%Over (-61%)
DCFCash Flow₹1,553.8411%Under (+28.4%)
Net Asset ValueAssets₹431.637%Over (-64.3%)
EV/EBITDAEnterprise₹1,158.429%Fair (-4.3%)
Earnings YieldEarnings₹667.207%Over (-44.9%)
ROCE CapitalReturns₹662.369%Over (-45.3%)
Revenue MultipleRevenue₹586.856%Over (-51.5%)
Consensus (9 models)₹949.28100%Overvalued

PE-ROE · Graham · EPV · DCF · NAV · EV/EBITDA · DDM · Earnings Yield · ROCE Capital · Revenue Multiple | CoE: 12% · Terminal: 4% · EPS CAGR: 20.5%

*Investments are subject to market risks

Investment Snapshot

70
Dr Reddys Laboratories Ltd scores 70/100 (Strong)
Based on 5 dimensions: health, institutional flow, earnings quality, momentum, and peer comparison
Stock Health87/100 · Strong
ROCE 22.7% ExcellentROE 18.0% GoodD/E 0.15 Low debtInterest Coverage 0.0x RiskyProfitable 5/5 years Consistent
Smart Money45/100 · Moderate
FII holding down -3.41% (6mo) SellingDII holding up 4.81% MF buyingPromoter holding at 26.6% Stable
Earnings Quality65/100 · Strong
OPM expanding (22% → 27%) Improving
Quarterly Momentum58/100 · Moderate
Revenue (4Q): +11% YoY GrowingProfit (4Q): +1% YoY PositiveOPM: 22.0% (down 5.0% YoY) Margin pressure
Industry Rank80/100 · Strong
P/E 18.1 vs industry 53.8 Cheaper than peersROCE 22.7% vs industry 16.4% Above peers3Y sales CAGR: 15% Moderate

Weights: Health 30% · Earnings Quality 25% · Momentum 20% · Industry Rank 15% · Smart Money 10%. Scores are computed from reported financials and recalculated daily. Not investment advice.

Share Price and Basic Stock Data

Last Updated: April 2, 2026, 2:50 am

Market Cap 1,00,960 Cr.
Current Price 1,210
Intrinsic Value₹949.28
High / Low 1,380/1,020
Stock P/E18.1
Book Value 432
Dividend Yield0.66 %
ROCE22.7 %
ROE18.0 %
Face Value 1.00
PEG Ratio0.88

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Dr Reddys Laboratories Ltd

Competitors

Stock Name ⇩Market Cap ⇩Current Price ⇩High / Low ⇩Stock P/E ⇩Book Value ⇩Dividend Yield ⇩ROCE ⇩ROE ⇩Face Value ⇩
Dr Reddys Laboratories Ltd 1,00,960 Cr. 1,210 1,380/1,02018.1 4320.66 %22.7 %18.0 % 1.00
Lupin Ltd 1,04,004 Cr. 2,275 2,378/1,77420.9 4300.53 %21.3 %20.6 % 2.00
Cipla Ltd 96,603 Cr. 1,196 1,673/1,19420.3 4081.09 %22.7 %17.8 % 2.00
Mankind Pharma Ltd 82,619 Cr. 2,001 2,727/1,91046.8 3760.05 %15.0 %13.9 % 1.00
Aurobindo Pharma Ltd 77,949 Cr. 1,342 1,360/99422.1 6030.30 %14.2 %11.1 % 1.00
Industry Average19,815.15 Cr1,053.8453.84201.200.39%16.35%15.16%6.10

All Competitor Stocks of Dr Reddys Laboratories Ltd

Quarterly Result

MetricDec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025
Sales 6,7906,3156,7586,9037,2377,1147,6968,0388,3818,5288,5728,8288,753
Expenses 4,8514,7814,6964,8945,2145,2835,5665,9626,1086,5306,3986,8186,866
Operating Profit 1,9391,5342,0622,0082,0231,8312,1302,0762,2731,9982,1742,0101,888
OPM % 29%24%31%29%28%26%28%26%27%23%25%23%22%
Other Income 65146178319219201193314154528290330271
Interest 42353735395960768266839194
Depreciation 324316353376374368381397471455476505521
Profit before tax 1,6381,3291,8501,9171,8291,6051,8831,9171,8742,0051,9051,7451,543
Tax % 24%28%24%23%24%18%26%30%25%21%26%23%23%
Net Profit 1,2449601,4051,4821,3811,3101,3921,3421,4041,5871,4101,3371,190
EPS in Rs 14.9411.5316.8717.7716.5615.7016.6915.0516.9419.0916.9916.1414.50

Last Updated: February 6, 2026, 3:46 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: February 23, 2026, 10:46 pm

MetricMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025TTM
Sales 13,41515,02315,56814,19614,28115,44817,51719,04821,54524,67028,01132,64434,682
Expenses 10,16411,51511,98311,72411,93012,27015,04015,17317,77818,20020,07824,09726,613
Operating Profit 3,2513,5083,5852,4722,3513,1782,4773,8743,7686,4707,9338,5478,069
OPM % 24%23%23%17%16%21%14%20%17%26%28%26%23%
Other Income 1702602951721553816703355559719091,1191,419
Interest 12710883637989989796143171283334
Depreciation 6487609391,0271,0771,1351,1631,2291,1651,2501,4701,7041,956
Profit before tax 2,6462,9002,8591,5541,3502,3361,8862,8843,0616,0487,2017,6807,198
Tax % 26%19%26%19%32%17%-7%32%29%25%23%25%
Net Profit 1,9632,3362,1311,2929471,9502,0261,9522,1824,5075,5785,7255,523
EPS in Rs 23.0827.4324.9815.5911.4123.4924.3823.4726.2354.1466.8767.7766.72
Dividend Payout % 16%15%16%26%35%17%21%21%23%15%12%12%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-20242024-2025
YoY Net Profit Growth (%)19.00%-8.78%-39.37%-26.70%105.91%3.90%-3.65%11.78%106.55%23.76%2.64%
Change in YoY Net Profit Growth (%)0.00%-27.78%-30.60%12.67%132.62%-102.02%-7.55%15.44%94.77%-82.79%-21.13%

Dr Reddys Laboratories Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2014-2015 to 2024-2025.

Growth

Last Updated: September 5, 2025, 3:10 am

Balance Sheet

Last Updated: December 4, 2025, 1:11 am

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Sep 2025
Equity Capital 85858583838383838383838384
Reserves 7,7809,76812,48412,17912,48913,94115,51617,55819,12923,20328,17133,46635,930
Borrowings 4,4774,3143,3524,9185,0713,8382,2103,0313,3841,3472,0024,6775,854
Other Liabilities 3,5634,2904,4084,4744,7064,5575,4145,9157,1497,5768,5239,79712,505
Total Liabilities 15,90618,45720,33021,65422,34922,41823,22326,58829,74632,20938,78048,02354,373
Fixed Assets 4,6415,3776,5636,9316,9687,1916,8508,2068,1229,21910,42618,22620,617
CWIP 6395297723,3243,4702,9341,5351,5651,2931,0301,4192,4661,997
Investments 1,0672,2483,8332,1102,2982,5872,6782,2122,6164,9864,9304,0514,701
Other Assets 9,55910,3039,1629,2909,6129,70712,16014,60517,71516,97422,00423,28027,058
Total Assets 15,90618,45720,33021,65422,34922,41823,22326,58829,74632,20938,78048,02354,373

Reserves and Borrowings Chart

Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Cash from Operating Activity + 1,9702,5243,2632,1441,8032,8702,9843,5702,8115,8884,5434,643
Cash from Investing Activity + -1,604-2,370-1,610-1,890-1,483-769-495-2,255-2,565-4,109-4,034-5,785
Cash from Financing Activity + -24-433-1,700-369-444-2,133-2,516-30-242-2,686-3761,891
Net Cash Flow 342-280-47-114-124-31-271,2863-907133749
Free Cash Flow 8951,0092,0659267132,2482,4122,3231,2384,0091,9081,327
CFO/OP 83%88%111%110%88%106%149%107%94%108%83%78%

Free Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Free Cash Flow-1.00-1.000.00-2.00-3.000.000.000.000.005.005.004.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Debtor Days 9010097981049410595113107105101
Inventory Days 271248248282263273230273250232283260
Days Payable 100848810412111110010911110811697
Cash Conversion Cycle 261264257275246256235259252231271264
Working Capital Days 322634-1439655957618411869
ROCE %25%22%19%9%8%13%11%16%14%27%27%23%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025
Promoters 26.69%26.69%26.66%26.65%26.65%26.65%26.64%26.64%26.64%26.64%26.64%26.64%
FIIs 27.25%26.99%28.19%28.62%29.13%27.68%27.53%26.85%25.75%25.33%24.69%22.34%
DIIs 23.05%21.99%21.04%18.65%18.31%20.72%21.48%22.89%25.63%26.73%27.99%30.44%
Public 22.78%24.11%23.93%25.89%25.73%24.78%24.20%23.46%21.69%21.04%20.45%20.33%
Others 0.22%0.21%0.18%0.18%0.17%0.17%0.16%0.16%0.29%0.26%0.25%0.25%
No. of Shareholders 2,32,7152,46,7692,43,4452,57,7942,55,5002,67,6943,10,4034,03,6694,59,6054,51,9294,49,2164,55,243

Shareholding Pattern Chart

No. of Shareholders

Dr Reddys Laboratories Ltd: Intrinsic Value & Share Price Analysis - Shareholder trend analysis

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Parag Parikh Flexi Cap Fund 14,083,029 1.28 1715.4513,125,5452026-02-23 04:05:167.29%
ICICI Prudential Value Fund 11,845,856 2.39 1442.94N/AN/AN/A
Nippon India Large Cap Fund 5,357,429 1.3 652.59N/AN/AN/A
ICICI Prudential Pharma Healthcare & Diagnostics (P.H.D) Fund 3,973,068 7.27 483.965,036,7282026-01-25 06:49:26-21.12%
Nippon India Pharma Fund 3,916,074 6.06 477.02550,0302025-09-18 02:15:08611.97%
ICICI Prudential Large Cap Fund 3,655,647 0.58 445.29N/AN/AN/A
Nippon India Small Cap Fund 3,172,198 0.59 386.41N/AN/AN/A
ICICI Prudential Balanced Advantage Fund 3,166,610 0.55 385.723,177,1742026-01-25 06:49:26-0.33%
Mirae Asset Large Cap Fund 3,124,889 0.94 380.642,870,1162026-02-23 01:16:548.88%
ICICI Prudential Multi Asset Fund 2,846,687 0.43 346.752,909,8122026-01-25 06:49:26-2.17%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 25Mar 24Mar 23Mar 22Mar 21
FaceValue 1.005.005.005.005.00
Basic EPS (Rs.) 67.89335.22271.47131.57117.67
Diluted EPS (Rs.) 67.79334.59270.90131.21117.34
Cash EPS (Rs.) 88.82421.65343.37196.96188.25
Book Value[Excl.RevalReserv]/Share (Rs.) 402.271693.931397.721154.591060.20
Book Value[Incl.RevalReserv]/Share (Rs.) 402.271693.931397.721154.591060.20
Revenue From Operations / Share (Rs.) 391.411679.321480.771294.781144.68
PBDIT / Share (Rs.) 115.64529.22444.45255.53250.08
PBIT / Share (Rs.) 95.21441.09369.41185.51176.23
PBT / Share (Rs.) 91.82430.83360.83179.75170.40
Net Profit / Share (Rs.) 68.39333.52268.32126.94114.40
NP After MI And SOA / Share (Rs.) 67.81334.41270.55131.16117.28
PBDIT Margin (%) 29.5431.5130.0119.7321.84
PBIT Margin (%) 24.3226.2624.9414.3215.39
PBT Margin (%) 23.4525.6524.3613.8814.88
Net Profit Margin (%) 17.4719.8618.129.809.99
NP After MI And SOA Margin (%) 17.3219.9118.2710.1210.24
Return on Networth / Equity (%) 16.8519.7419.3511.3511.06
Return on Capital Employeed (%) 21.8125.1325.9515.4415.84
Return On Assets (%) 11.4414.3513.967.337.33
Long Term Debt / Equity (X) 0.010.010.000.010.02
Total Debt / Equity (X) 0.120.050.040.160.15
Asset Turnover Ratio (%) 0.730.780.790.560.59
Current Ratio (X) 1.922.592.381.821.80
Quick Ratio (X) 1.371.921.811.301.24
Inventory Turnover Ratio (X) 4.850.800.840.851.03
Dividend Payout Ratio (NP) (%) 11.7811.9111.0418.9921.24
Dividend Payout Ratio (CP) (%) 9.059.438.6412.3813.03
Earning Retention Ratio (%) 88.2288.0988.9681.0178.76
Cash Earning Retention Ratio (%) 90.9590.5791.3687.6286.97
Interest Coverage Ratio (X) 34.0951.5951.8544.3942.90
Interest Coverage Ratio (Post Tax) (X) 21.1633.5132.3023.0520.62
Enterprise Value (Cr.) 97515.87102592.5076382.9972310.8675755.28
EV / Net Operating Revenue (X) 2.993.663.103.363.98
EV / EBITDA (X) 10.1111.6210.3217.0118.20
MarketCap / Net Operating Revenue (X) 2.923.673.123.333.94
Retention Ratios (%) 88.2188.0888.9581.0078.75
Price / BV (X) 2.843.633.313.734.26
Price / Net Operating Revenue (X) 2.923.673.123.333.94
EarningsYield 0.050.050.050.030.02

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

About the Company - Qualitative Analysis

Dr. Reddy's Laboratories Ltd. is a Public Limited Listed company incorporated on 24/02/1984 and has its registered office in the State of Telangana, India. Company's Corporate Identification Number(CIN) is L85195TG1984PLC004507 and registration number is 004507. Currently Company is involved in the business activities of Manufacture of other pharmaceutical and botanical products like hina powder etc.. Company's Total Operating Revenue is Rs. 23115.40 Cr. and Equity Capital is Rs. 83.40 Cr. for the Year ended 31/03/2025.
INDUSTRYADDRESSCONTACT
Pharmaceuticals8-2-337, Road No. 3, Hyderabad Telangana 500034Contact not found
Management
NamePosition Held
Mr. K Satish ReddyChairman
Mr. G V PrasadCo-Chairman & Manag. Director
Dr. Claudio AlbrechtIndependent Director
Mr. Leo PuriIndependent Director
Ms. Shikha SharmaIndependent Director
Mr. Sanjiv MehtaIndependent Director
Mr. Arun M KumarIndependent Director
Dr. K P KrishnanIndependent Director
Ms. Penny WanIndependent Director
Dr. Alpna SethIndependent Director

FAQ

What is the intrinsic value of Dr Reddys Laboratories Ltd and is it undervalued?

As of 20 April 2026, Dr Reddys Laboratories Ltd's intrinsic value is ₹949.28, which is 21.55% lower than the current market price of ₹1,210.00, suggesting the stock is overvalued. This is calculated using the PE ratio method factoring in ROE (18.0 %), book value (₹432), dividend yield (0.66 %), and 5-year EPS CAGR.

What is the current share price and 52-week range of Dr Reddys Laboratories Ltd?

Dr Reddys Laboratories Ltd is trading at ₹1,210.00 as of 20 April 2026, with a FY2026-2027 high of ₹1,380 and low of ₹1,020. The stock is currently in the middle of its 52-week range. Market cap stands at ₹1,00,960 Cr..

How does Dr Reddys Laboratories Ltd's P/E ratio compare to its industry?

Dr Reddys Laboratories Ltd has a P/E ratio of 18.1, which is below the industry average of 53.84. Trading at a steep discount to peers could signal a value opportunity or reflect concerns about the company's fundamentals.

Is Dr Reddys Laboratories Ltd financially healthy?

Key indicators for Dr Reddys Laboratories Ltd: ROCE of 22.7 % indicates efficient capital utilization; ROE of 18.0 % shows strong shareholder returns. Dividend yield is 0.66 %.

Is Dr Reddys Laboratories Ltd profitable and how is the profit trend?

Dr Reddys Laboratories Ltd reported a net profit of ₹5,725 Cr in Mar 2025 on revenue of ₹32,644 Cr. Compared to ₹2,182 Cr in Mar 2022, the net profit shows an improving trend.

Does Dr Reddys Laboratories Ltd pay dividends?

Dr Reddys Laboratories Ltd has a dividend yield of 0.66 % at the current price of ₹1,210.00. The company pays dividends, though the yield is modest.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Dr Reddys Laboratories Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE
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