Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 30 May, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Dr Reddys Laboratories Ltd

About the Company - Dr Reddys Laboratories Ltd

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. 14405.20 Cr. and Equity Capital is Rs. 83.20 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Pharmaceuticals8-2-337, Road No. 3, Hyderabad Telangana 500034shares@drreddys.com
http://www.drreddys.com
Management
NamePosition Held
Mr. K Satish ReddyChairman
Mr. G V PrasadCo-Chairman & Manag. Director
Ms. Kalpana MorpariaIndependent Director
Mr. Leo PuriIndependent Director
Dr. Claudio AlbrechtIndependent Director
Ms. Shikha SharmaIndependent Director
Ms. Penny WanIndependent Director
Mr. Sridar IyengarIndependent Director
Mr. Arun Madhavan KumarIndependent Director
Dr. K P KrishnanIndependent Director

Basic Stock Data of Dr Reddys Laboratories Ltd

Last Updated: May 23, 2024, 3:24 pm

Market Cap 98,386 Cr.
Current Price 5,898
High / Low6,506/4,481
Stock P/E17.6
Book Value 1,694
Dividend Yield0.68 %
ROCE26.9 %
ROE21.6 %
Face Value 5.00
PEG Ratio0.87

Dr Reddys Laboratories Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales4,9424,7684,9455,7875,3385,4755,2336,3326,7906,3156,7586,9037,237
Expenses4,4033,7154,2114,4274,1235,0244,2924,4334,8514,7814,6964,8945,214
Operating Profit5391,0537341,3601,2164519411,8991,9391,5342,0622,0082,023
OPM %11%22%15%24%23%8%18%30%29%24%31%29%28%
Other Income86100124230741328635565146178319219
Interest19301923223235314235373539
Depreciation311309284294294293302309324316353376374
Profit before tax2958155561,2729742591,4681,6141,6381,3291,8501,9171,829
Tax %91%32%32%22%27%63%19%31%24%28%24%23%24%
Net Profit28557380996709971,1891,1141,2449601,4051,4821,381
EPS in Rs1.6833.5122.8759.8442.625.8371.4466.9374.7057.6584.3688.8782.78

Last Updated: May 7, 2024, 12:14 am

Dr Reddys Laboratories Ltd Quarterly Chart

Dr Reddys Laboratories Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales9,81411,83313,41515,02315,56814,19614,28115,44817,51719,04821,54524,67026,766
Expenses7,3719,16410,16411,51511,98311,72411,93012,27015,04015,17317,77818,20019,223
Operating Profit2,4442,6693,2513,5083,5852,4722,3513,1782,4773,8743,7686,4707,543
OPM %25%23%24%23%23%17%16%21%14%20%17%26%28%
Other Income-7146170260295172155381670335555971708
Interest11410012710883637989989796143150
Depreciation5185506487609391,0271,0771,1351,1631,2291,1651,2501,368
Profit before tax1,8042,1652,6462,9002,8591,5541,3502,3361,8862,8843,0616,0486,734
Tax %28%29%26%19%26%19%32%17%-7%32%29%25%
Net Profit1,3011,5271,9632,3362,1311,2929471,9502,0261,9522,1824,5075,091
EPS in Rs76.7289.90115.41137.13124.8877.9657.07117.42121.92117.35131.14270.66305.58
Dividend Payout %18%17%16%15%16%26%35%17%21%21%23%15%

Dr Reddys Laboratories Ltd Profit & Loss Yearly Chart

Dr Reddys Laboratories Ltd Growth

Compounded Sales Growth
10 Years:8%
5 Years:13%
3 Years:14%
TTM:14%
Compounded Profit Growth
10 Years:11%
5 Years:25%
3 Years:42%
TTM:21%
Stock Price CAGR
10 Years:9%
5 Years:18%
3 Years:4%
1 Year:29%
Return on Equity
10 Years:16%
5 Years:17%
3 Years:19%
Last Year:22%

Last Updated: May 23, 2024, 3:24 pm

Dr Reddys Laboratories Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital85858585858383838383838383
Reserves4,9046,2847,7809,76812,48412,17912,48913,94115,51617,55819,12923,20325,413
Borrowings3,2343,6824,4774,3143,3524,9185,0713,8382,2103,0313,3841,3471,323
Other Liabilities3,0823,3293,5634,2904,4084,4744,7064,5575,4145,9157,1497,5767,990
Total Liabilities11,30513,38015,90618,45720,33021,65422,34922,41823,22326,58829,74632,20934,809
Fixed Assets3,4124,0514,6415,3776,5636,9316,9687,1916,8508,2068,1229,21910,090
CWIP7085656395297723,3243,4702,9341,5351,5651,2931,0301,151
Investments2081971,0672,2483,8332,1102,2982,5872,6782,2122,6164,9864,457
Other Assets6,9778,5679,55910,3039,1629,2909,6129,70712,16014,60517,71516,97419,111
Total Assets11,30513,38015,90618,45720,33021,65422,34922,41823,22326,58829,74632,20934,809

Dr Reddys Laboratories Ltd Reserves and Borrowings Chart

Dr Reddys Laboratories Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 1,6131,3781,9702,5243,2632,1441,8032,8702,9843,5702,8115,888
Cash from Investing Activity -971-1,437-1,604-2,370-1,610-1,890-1,483-769-495-2,255-2,565-4,109
Cash from Financing Activity 389-157-24-433-1,700-369-444-2,133-2,516-30-242-2,686
Net Cash Flow1,031-216342-280-47-114-124-31-271,2863-907

Dr Reddys Laboratories Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days94989010097981049410595113107
Inventory Days282229271248248282263273230273250232
Days Payable1101021008488104121111100109111108
Cash Conversion Cycle267225261264257275246256235259252231
Working Capital Days8179887987981049393103108102
ROCE %28%25%25%22%19%9%8%13%11%16%14%27%

Dr Reddys Laboratories Ltd Financial Efficiency Indicators Chart

Dr Reddys Laboratories Ltd Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters26.73%26.72%26.72%26.72%26.71%26.71%26.69%26.69%26.69%26.66%26.65%26.65%
FIIs29.04%27.76%27.42%25.16%25.87%26.26%27.29%27.25%26.99%28.19%28.62%29.13%
DIIs15.74%21.40%22.29%24.78%25.18%24.69%23.38%23.05%21.99%21.04%18.65%18.31%
Public28.17%23.83%23.29%23.07%21.96%22.06%22.36%22.78%24.11%23.93%25.89%25.73%
Others0.32%0.29%0.28%0.28%0.28%0.27%0.25%0.22%0.21%0.18%0.18%0.17%
No. of Shareholders2,23,3092,55,7202,42,3762,63,8032,55,3002,59,2712,46,7882,32,7152,46,7692,43,4452,57,7942,55,500

Dr Reddys Laboratories Ltd Shareholding Pattern Chart

No. of Dr Reddys Laboratories Ltd Shareholders

Dr Reddys Laboratories Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
SBI Nifty 50 ETF22596100.781212.86
HDFC Flexi Cap Fund - Regular Plan12000001.63644.11
Parag Parikh Flexi Cap Fund8118350.99435.76
HDFC ELSS Tax Saver Fund6000002.86322.05
Nippon India Pharma Fund5500305.33295.23
SBI Arbitrage Opportunities Fund3277500.79175.92
HDFC Arbitrage Fund - Regular Plan3042502.16163.31
HDFC Arbitrage Fund - Wholesale Plan3042502.16163.31
Mirae Asset Healthcare Fund2823468.5151.55
Tata Equity P/E Fund - Regular Plan2700002.43144.92

Dr Reddys Laboratories Ltd ROCE Trend

Dr Reddys Laboratories Ltd EPS Trend

Dr Reddys Laboratories Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)271.47131.57117.67122.22117.53
Diluted EPS (Rs.)270.90131.21117.34121.99117.33
Cash EPS (Rs.)343.37196.96188.25188.51183.19
Book Value[Excl.RevalReserv]/Share (Rs.)1397.721154.591060.20938.56844.79
Book Value[Incl.RevalReserv]/Share (Rs.)1397.721154.591060.20938.56844.79
Revenue From Operations / Share (Rs.)1480.771294.781144.681053.97930.61
PBDIT / Share (Rs.)444.45255.53250.08185.98211.79
PBIT / Share (Rs.)369.41185.51176.23116.00143.43
PBT / Share (Rs.)360.83179.75170.40110.08138.07
Net Profit / Share (Rs.)268.32126.94114.40118.53114.83
NP After MI And SOA / Share (Rs.)270.55131.16117.28121.90117.47
PBDIT Margin (%)30.0119.7321.8417.6422.75
PBIT Margin (%)24.9414.3215.3911.0015.41
PBT Margin (%)24.3613.8814.8810.4414.83
Net Profit Margin (%)18.129.809.9911.2412.33
NP After MI And SOA Margin (%)18.2710.1210.2411.5612.62
Return on Networth / Equity (%)19.3511.3511.0612.9813.90
Return on Capital Employeed (%)25.9515.4415.8412.0414.37
Return On Assets (%)13.967.337.338.728.67
Long Term Debt / Equity (X)0.000.010.020.010.15
Total Debt / Equity (X)0.040.160.150.110.24
Asset Turnover Ratio (%)0.610.560.590.560.54
Current Ratio (X)2.381.821.801.751.88
Quick Ratio (X)1.811.301.241.261.31
Inventory Turnover Ratio (X)0.770.851.030.920.85
Dividend Payout Ratio (NP) (%)11.0418.9921.2419.3217.02
Dividend Payout Ratio (CP) (%)8.6412.3813.0312.2710.76
Earning Retention Ratio (%)88.9681.0178.7680.6882.98
Cash Earning Retention Ratio (%)91.3687.6286.9787.7389.24
Interest Coverage Ratio (X)51.8544.3942.9031.4439.55
Interest Coverage Ratio (Post Tax) (X)32.3023.0520.6221.0422.44
Enterprise Value (Cr.)76382.9972310.8675755.2853384.5049240.59
EV / Net Operating Revenue (X)3.103.363.983.053.19
EV / EBITDA (X)10.3217.0118.2017.2714.01
MarketCap / Net Operating Revenue (X)3.123.333.942.962.98
Retention Ratios (%)88.9581.0078.7580.6782.97
Price / BV (X)3.313.734.263.323.28
Price / Net Operating Revenue (X)3.123.333.942.962.98
EarningsYield0.050.030.020.030.04

Dr Reddys Laboratories Ltd Profitability Ratios (%)

Dr Reddys Laboratories Ltd Liquidity Ratios

Dr Reddys Laboratories Ltd Liquidity Ratios (%)

Dr Reddys Laboratories Ltd Interest Coverage Ratios (%)

Dr Reddys Laboratories Ltd Valuation Ratios

Fair Value

Fair Value: ₹6,483.70

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 9.93% compared to the current price ₹5898

Intrinsic Value: ₹7,791.71

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 32.11% compared to the current price ₹5898

Last 5 Year EPS CAGR: 20.17%

*Investments are subject to market risks

Strength and Weakness of Dr Reddys Laboratories Ltd Stock

StrengthWeakness
  1. The stock has a high average ROCE of 18.08%, which is a positive sign.
  2. The company has higher reserves (13,896.00 cr) compared to borrowings (3,398.54 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (16.38 cr) and profit (2.38 cr) over the years.
  1. The stock has a high average Working Capital Days of 92.92, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 252.33, which may not be favorable.

FAQ

What is the latest fair value of Dr Reddys Laboratories Ltd?

The latest fair value of Dr Reddys Laboratories Ltd is ₹6483.70.

What is the Market Cap of Dr Reddys Laboratories Ltd?

The Market Cap of Dr Reddys Laboratories Ltd is 98,386 Cr..

What is the current Stock Price of Dr Reddys Laboratories Ltd as on 30 May 2024?

The current stock price of Dr Reddys Laboratories Ltd as on 30 May 2024 is ₹5,898.

What is the High / Low of Dr Reddys Laboratories Ltd stocks in FY 2024?

In FY 2024, the High / Low of Dr Reddys Laboratories Ltd stocks is 6,506/4,481.

What is the Stock P/E of Dr Reddys Laboratories Ltd?

The Stock P/E of Dr Reddys Laboratories Ltd is 17.6.

What is the Book Value of Dr Reddys Laboratories Ltd?

The Book Value of Dr Reddys Laboratories Ltd is 1,694.

What is the Dividend Yield of Dr Reddys Laboratories Ltd?

The Dividend Yield of Dr Reddys Laboratories Ltd is 0.68 %.

What is the ROCE of Dr Reddys Laboratories Ltd?

The ROCE of Dr Reddys Laboratories Ltd is 26.9 %.

What is the ROE of Dr Reddys Laboratories Ltd?

The ROE of Dr Reddys Laboratories Ltd is 21.6 %.

What is the Face Value of Dr Reddys Laboratories Ltd?

The Face Value of Dr Reddys Laboratories Ltd is 5.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

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