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Last Updated on: 18 February, 2025
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 500124 | NSE: DRREDDY

Dr Reddys Laboratories Ltd: Share Price Analysis, Intrinsic Value & Fundamentals (2025)

Share Price and Basic Stock Data

Last Updated: February 18, 2025, 3:01 am

Market Cap 1,00,043 Cr.
Current Price 1,199
High / Low 1,421/1,120
Stock P/E18.7
Book Value 369
Dividend Yield0.67 %
ROCE26.5 %
ROE21.4 %
Face Value 1.00
PEG Ratio0.84

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

View Share Price Target for Dr Reddys Laboratories Ltd

Competitors of Dr Reddys Laboratories Ltd

Stock Name Market Cap Current Price High / Low Stock P/E Book Value Dividend Yield ROCE ROE Face Value
MPS Pharmaa Ltd 7.63 Cr. 3.99 4.33/3.05 0.800.00 %9.15 %34.9 % 10.0
Gujarat Themis Biosyn Ltd 2,503 Cr. 230 390/21647.5 20.50.29 %45.0 %33.8 % 1.00
Gujarat Terce Laboratories Ltd 53.9 Cr. 72.7 94.9/30.818.3 11.90.00 %9.72 %3.44 % 10.0
Gujarat Inject (Kerala) Ltd 39.1 Cr. 26.7 28.6/8.7439.9 6.640.00 %2.65 %2.08 % 10.0
Godavari Drugs Ltd 65.8 Cr. 87.4 155/82.210.6 55.40.00 %14.4 %15.5 % 10.0
Industry Average17,583.84 Cr1,064.5843.34185.200.36%16.18%16.43%6.27

All Competitor Stocks of Dr Reddys Laboratories Ltd

Quarterly Result

MetricMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales 4,7684,9455,7875,3385,4755,2336,3326,7906,3156,7586,9037,2377,114
Expenses 3,7154,2114,4274,1235,0244,2924,4334,8514,7814,6964,8945,2145,283
Operating Profit 1,0537341,3601,2164519411,8991,9391,5342,0622,0082,0231,831
OPM % 22%15%24%23%8%18%30%29%24%31%29%28%26%
Other Income 100124230741328635565146178319219201
Interest 30192322323531423537353959
Depreciation 309284294294293302309324316353376374368
Profit before tax 8155561,2729742591,4681,6141,6381,3291,8501,9171,8291,605
Tax % 32%32%22%27%63%19%31%24%28%24%23%24%18%
Net Profit 557380996709971,1891,1141,2449601,4051,4821,3811,310
EPS in Rs 33.5122.8759.8442.625.8371.4466.9374.7057.6584.3688.8782.7878.52

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MetricMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales 11,83313,41515,02315,56814,19614,28115,44817,51719,04821,54524,67028,011
Expenses 9,16410,16411,51511,98311,72411,93012,27015,04015,17317,77818,20020,078
Operating Profit 2,6693,2513,5083,5852,4722,3513,1782,4773,8743,7686,4707,933
OPM % 23%24%23%23%17%16%21%14%20%17%26%28%
Other Income 146170260295172155381670335555971909
Interest 10012710883637989989796143171
Depreciation 5506487609391,0271,0771,1351,1631,2291,1651,2501,470
Profit before tax 2,1652,6462,9002,8591,5541,3502,3361,8862,8843,0616,0487,201
Tax % 29%26%19%26%19%32%17%-7%32%29%25%23%
Net Profit 1,5271,9632,3362,1311,2929471,9502,0261,9522,1824,5075,578
EPS in Rs 89.90115.41137.13124.8877.9657.07117.42121.92117.35131.14270.66334.37
Dividend Payout % 17%16%15%16%26%35%17%21%21%23%15%12%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)28.55%19.00%-8.78%-39.37%-26.70%105.91%3.90%-3.65%11.78%106.55%23.76%
Change in YoY Net Profit Growth (%)0.00%-9.55%-27.78%-30.60%12.67%132.62%-102.02%-7.55%15.44%94.77%-82.79%

Dr Reddys Laboratories Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:8%
5 Years:13%
3 Years:14%
TTM:15%
Compounded Profit Growth
10 Years:11%
5 Years:24%
3 Years:41%
TTM:3%
Stock Price CAGR
10 Years:6%
5 Years:13%
3 Years:12%
1 Year:-7%
Return on Equity
10 Years:16%
5 Years:17%
3 Years:19%
Last Year:21%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 12:36 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital 85858585838383838383838383
Reserves 6,2847,7809,76812,48412,17912,48913,94115,51617,55819,12923,20328,17130,666
Borrowings 3,6824,4774,3143,3524,9185,0713,8382,2103,0313,3841,3472,0024,854
Other Liabilities 3,3293,5634,2904,4084,4744,7064,5575,4145,9157,1497,5768,52311,125
Total Liabilities 13,38015,90618,45720,33021,65422,34922,41823,22326,58829,74632,20938,78046,728
Fixed Assets 4,0514,6415,3776,5636,9316,9687,1916,8508,2068,1229,21910,42617,254
CWIP 5656395297723,3243,4702,9341,5351,5651,2931,0301,4191,852
Investments 1971,0672,2483,8332,1102,2982,5872,6782,2122,6164,9864,9303,663
Other Assets 8,5679,55910,3039,1629,2909,6129,70712,16014,60517,71516,97422,00423,960
Total Assets 13,38015,90618,45720,33021,65422,34922,41823,22326,58829,74632,20938,78046,728

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +1,3781,9702,5243,2632,1441,8032,8702,9843,5702,8115,8884,543
Cash from Investing Activity +-1,437-1,604-2,370-1,610-1,890-1,483-769-495-2,255-2,565-4,109-4,034
Cash from Financing Activity +-157-24-433-1,700-369-444-2,133-2,516-30-242-2,686-376
Net Cash Flow-216342-280-47-114-124-31-271,2863-907133

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-1.00-1.00-1.000.00-2.00-3.000.000.000.000.005.005.00

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 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days989010097981049410595113107105
Inventory Days229271248248282263273230273250232283
Days Payable1021008488104121111100109111108116
Cash Conversion Cycle225261264257275246256235259252231271
Working Capital Days79887987981049393103108102137
ROCE %25%25%22%19%9%8%13%11%16%14%27%27%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters26.72%26.72%26.72%26.71%26.71%26.69%26.69%26.69%26.66%26.65%26.65%26.65%
FIIs27.76%27.42%25.16%25.87%26.26%27.29%27.25%26.99%28.19%28.62%29.13%27.68%
DIIs21.40%22.29%24.78%25.18%24.69%23.38%23.05%21.99%21.04%18.65%18.31%20.72%
Public23.83%23.29%23.07%21.96%22.06%22.36%22.78%24.11%23.93%25.89%25.73%24.78%
Others0.29%0.28%0.28%0.28%0.27%0.25%0.22%0.21%0.18%0.18%0.17%0.17%
No. of Shareholders2,55,7202,42,3762,63,8032,55,3002,59,2712,46,7882,32,7152,46,7692,43,4452,57,7942,55,5002,67,694

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Nifty 50 ETF2,208,9110.711279.371,126,0532025-02-1796.16%
Parag Parikh Flexi Cap Fund1,126,0530.98652.191,126,0532025-02-170%
HDFC Flexi Cap Fund - Regular Plan1,000,0001.06579.191,126,0532025-02-17-11.19%
UTI Nifty 50 ETF637,1920.71369.051,126,0532025-02-17-43.41%
Mirae Asset Large & Midcap Fund602,3220.99348.861,126,0532025-02-17-46.51%
Nippon India Pharma Fund550,0304.45318.571,126,0532025-02-17-51.15%
ICICI Prudential Pharma Healthcare & Diagnostics (P.H.D) Fund511,6967.55296.371,126,0532025-02-17-54.56%
HDFC ELSS Tax Saver Fund450,0001.77260.631,126,0532025-02-17-60.04%
UTI Nifty200 Momentum 30 Index Fund438,4634.05253.951,126,0532025-02-17-61.06%
Mirae Asset ELSS Tax Saver Fund426,2231.09246.861,126,0532025-02-17-62.15%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue 5.005.005.005.005.00
Basic EPS (Rs.) 335.22271.47131.57117.67122.22
Diluted EPS (Rs.) 334.59270.90131.21117.34121.99
Cash EPS (Rs.) 421.65343.37196.96188.25188.51
Book Value[Excl.RevalReserv]/Share (Rs.) 1693.931397.721154.591060.20938.56
Book Value[Incl.RevalReserv]/Share (Rs.) 1693.931397.721154.591060.20938.56
Revenue From Operations / Share (Rs.) 1679.321480.771294.781144.681053.97
PBDIT / Share (Rs.) 529.22444.45255.53250.08185.98
PBIT / Share (Rs.) 441.09369.41185.51176.23116.00
PBT / Share (Rs.) 430.83360.83179.75170.40110.08
Net Profit / Share (Rs.) 333.52268.32126.94114.40118.53
NP After MI And SOA / Share (Rs.)334.41270.55131.16117.28121.90
PBDIT Margin (%) 31.5130.0119.7321.8417.64
PBIT Margin (%) 26.2624.9414.3215.3911.00
PBT Margin (%) 25.6524.3613.8814.8810.44
Net Profit Margin (%) 19.8618.129.809.9911.24
NP After MI And SOA Margin (%)19.9118.2710.1210.2411.56
Return on Networth / Equity (%) 19.7419.3511.3511.0612.98
Return on Capital Employeed (%) 25.1325.9515.4415.8412.04
Return On Assets (%) 14.3513.967.337.338.72
Long Term Debt / Equity (X) 0.010.000.010.020.01
Total Debt / Equity (X) 0.050.040.160.150.11
Asset Turnover Ratio (%) 0.780.790.560.590.56
Current Ratio (X) 2.592.381.821.801.75
Quick Ratio (X) 1.921.811.301.241.26
Inventory Turnover Ratio (X) 0.800.840.851.030.92
Dividend Payout Ratio (NP) (%) 11.9111.0418.9921.2419.32
Dividend Payout Ratio (CP) (%) 9.438.6412.3813.0312.27
Earning Retention Ratio (%) 88.0988.9681.0178.7680.68
Cash Earning Retention Ratio (%) 90.5791.3687.6286.9787.73
Interest Coverage Ratio (X) 51.5951.8544.3942.9031.44
Interest Coverage Ratio (Post Tax) (X) 33.5132.3023.0520.6221.04
Enterprise Value (Cr.) 102592.5076382.9972310.8675755.2853384.50
EV / Net Operating Revenue (X) 3.663.103.363.983.05
EV / EBITDA (X) 11.6210.3217.0118.2017.27
MarketCap / Net Operating Revenue (X) 3.673.123.333.942.96
Retention Ratios (%) 88.0888.9581.0078.7580.67
Price / BV (X) 3.633.313.734.263.32
Price / Net Operating Revenue (X) 3.673.123.333.942.96
EarningsYield 0.050.050.030.020.03

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Dr Reddys Laboratories Ltd as of February 18, 2025 is: ₹1,189.25

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.

As of February 18, 2025, Dr Reddys Laboratories Ltd is Overvalued by 0.81% compared to the current share price ₹1,199.00

Intrinsic Value of Dr Reddys Laboratories Ltd as of February 18, 2025 is: 1,455.14

Calculation basis:

  • Intrinsic 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 intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of February 18, 2025, Dr Reddys Laboratories Ltd is Undervalued by 21.36% compared to the current share price ₹1,199.00

Last 5 Year EPS CAGR: 22.36%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 18.00%, which is a positive sign.
  2. The company has higher reserves (16,089.85 cr) compared to borrowings (3,575.38 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (17.17 cr) and profit (2.58 cr) over the years.
  1. The stock has a high average Working Capital Days of 97.58, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 252.67, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Dr Reddys Laboratories Ltd:
    1. Net Profit Margin: 19.86%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 25.13% (Industry Average ROCE: 16.05%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 19.74% (Industry Average ROE: 15.89%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 33.51
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.92
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 18.7 (Industry average Stock P/E: 35.1)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.05
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

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. 19483.80 Cr. and Equity Capital is Rs. 83.40 Cr. for the Year ended 31/03/2024.
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
Dr. Claudio AlbrechtIndependent Director
Ms. Kalpana MorpariaIndependent 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 Dr Reddys Laboratories Ltd's true worth and is it a good investment?

Let's break down Dr Reddys Laboratories Ltd's valuation simply:

We calculate intrinsic value using the PE Ratio Method - comparing the company's current price-to-earnings ratio with its historical average and industry peers. Think of it like checking if a stock is "on sale" compared to its typical pricing.

As of 18 February 2025:

  • Calculated Fair Value: ₹1189.25
  • Current Market Price: ₹1,199.00
  • Variance: 0.81% lower

This suggests Dr Reddys Laboratories Ltd is currently overvalued by 0.81%. For context:

  • Market Cap: 1,00,043 Cr.
  • 52-Week Range: 1,421/1,120
  • Reserves (Sep 2024): ₹30,666 Cr
  • Liabilities: 46,728 Cr

Remember: The PE method gives a snapshot based on earnings multiples. While useful for quick comparisons, investors should also consider growth prospects, industry trends, and economic conditions. This calculation assumes historical PE ratios remain relevant - always verify with current market dynamics.

What is the Market Cap of Dr Reddys Laboratories Ltd?

The Market Cap of Dr Reddys Laboratories Ltd is 1,00,043 Cr..

What is the current Stock Price of Dr Reddys Laboratories Ltd as on 18 February 2025?

The current stock price of Dr Reddys Laboratories Ltd as on 18 February 2025 is ₹1,199.

What is the High / Low of Dr Reddys Laboratories Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Dr Reddys Laboratories Ltd stocks is 1,421/1,120.

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

The Stock P/E of Dr Reddys Laboratories Ltd is 18.7.

What is the Book Value of Dr Reddys Laboratories Ltd?

The Book Value of Dr Reddys Laboratories Ltd is 369.

What is the Dividend Yield of Dr Reddys Laboratories Ltd?

The Dividend Yield of Dr Reddys Laboratories Ltd is 0.67 %.

What is the ROCE of Dr Reddys Laboratories Ltd?

The ROCE of Dr Reddys Laboratories Ltd is 26.5 %.

What is the ROE of Dr Reddys Laboratories Ltd?

The ROE of Dr Reddys Laboratories Ltd is 21.4 %.

What is the Face Value of Dr Reddys Laboratories Ltd?

The Face Value of Dr Reddys Laboratories Ltd is 1.00.

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