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Last Updated on: 16 May, 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: Intrinsic Value & Share Price Analysis

Share Price and Basic Stock Data

Last Updated: May 15, 2025, 9:56 pm

Market Cap 1,03,176 Cr.
Current Price 1,236
High / Low 1,421/1,020
Stock P/E18.2
Book Value 402
Dividend Yield0.65 %
ROCE23.1 %
ROE18.3 %
Face Value 1.00
PEG Ratio0.77

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 ⇩
Lactose (India) Ltd 143 Cr. 101 247/84.320.6 36.50.00 %18.0 %15.5 % 10.0
MPS Pharmaa Ltd 5.03 Cr. 2.63 4.33/2.61 0.800.00 %9.15 %34.9 % 10.0
Gujarat Themis Biosyn Ltd 2,663 Cr. 244 390/19250.6 20.50.27 %45.0 %33.8 % 1.00
Gujarat Terce Laboratories Ltd 43.5 Cr. 58.6 94.9/44.514.7 11.90.00 %9.72 %3.44 % 10.0
Gujarat Inject (Kerala) Ltd 29.3 Cr. 20.0 29.0/13.129.9 6.640.00 %2.65 %2.08 % 10.0
Industry Average18,289.93 Cr1,108.1878.95184.940.32%16.34%16.95%6.19

All Competitor Stocks of Dr Reddys Laboratories Ltd

Quarterly Result

MetricDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024
Sales 5,3385,4755,2336,3326,7906,3156,7586,9037,2377,1147,6968,0388,381
Expenses 4,1235,0244,2924,4334,8514,7814,6964,8945,2145,2835,5665,9626,108
Operating Profit 1,2164519411,8991,9391,5342,0622,0082,0231,8312,1302,0762,273
OPM % 23%8%18%30%29%24%31%29%28%26%28%26%27%
Other Income 741328635565146178319219201193314154
Interest 22323531423537353959607682
Depreciation 294293302309324316353376374368381397471
Profit before tax 9742591,4681,6141,6381,3291,8501,9171,8291,6051,8831,9171,874
Tax % 27%63%19%31%24%28%24%23%24%18%26%30%25%
Net Profit 709971,1891,1141,2449601,4051,4821,3811,3101,3921,3421,404
EPS in Rs 8.521.1714.2913.3914.9411.5316.8717.7716.5615.7016.6915.0516.94

Last Updated: March 3, 2025, 4:42 pm

Below is a detailed analysis of the quarterly data for Dr Reddys Laboratories Ltd based on the most recent figures (Dec 2024) and their trends compared to the previous period:

  • For Sales, as of Dec 2024, the value is 8,381.00 Cr.. The value appears strong and on an upward trend. It has increased from 8,038.00 Cr. (Sep 2024) to 8,381.00 Cr., marking an increase of 343.00 Cr..
  • For Expenses, as of Dec 2024, the value is 6,108.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 5,962.00 Cr. (Sep 2024) to 6,108.00 Cr., marking an increase of 146.00 Cr..
  • For Operating Profit, as of Dec 2024, the value is 2,273.00 Cr.. The value appears strong and on an upward trend. It has increased from 2,076.00 Cr. (Sep 2024) to 2,273.00 Cr., marking an increase of 197.00 Cr..
  • For OPM %, as of Dec 2024, the value is 27.00%. The value appears strong and on an upward trend. It has increased from 26.00% (Sep 2024) to 27.00%, marking an increase of 1.00%.
  • For Other Income, as of Dec 2024, the value is 154.00 Cr.. The value appears to be declining and may need further review. It has decreased from 314.00 Cr. (Sep 2024) to 154.00 Cr., marking a decrease of 160.00 Cr..
  • For Interest, as of Dec 2024, the value is 82.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 76.00 Cr. (Sep 2024) to 82.00 Cr., marking an increase of 6.00 Cr..
  • For Depreciation, as of Dec 2024, the value is 471.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 397.00 Cr. (Sep 2024) to 471.00 Cr., marking an increase of 74.00 Cr..
  • For Profit before tax, as of Dec 2024, the value is 1,874.00 Cr.. The value appears to be declining and may need further review. It has decreased from 1,917.00 Cr. (Sep 2024) to 1,874.00 Cr., marking a decrease of 43.00 Cr..
  • For Tax %, as of Dec 2024, the value is 25.00%. The value appears to be improving (decreasing) as expected. It has decreased from 30.00% (Sep 2024) to 25.00%, marking a decrease of 5.00%.
  • For Net Profit, as of Dec 2024, the value is 1,404.00 Cr.. The value appears strong and on an upward trend. It has increased from 1,342.00 Cr. (Sep 2024) to 1,404.00 Cr., marking an increase of 62.00 Cr..
  • For EPS in Rs, as of Dec 2024, the value is 16.94. The value appears strong and on an upward trend. It has increased from 15.05 (Sep 2024) to 16.94, marking an increase of 1.89.

Overall, while many items appear to show a positive trend, any significant downward movement warrant further investigation.

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 15, 2025, 6:49 am

MetricMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Sales 13,41515,02315,56814,19614,28115,44817,51719,04821,54524,67028,01132,644
Expenses 10,16411,51511,98311,72411,93012,27015,04015,17317,77818,20020,07824,097
Operating Profit 3,2513,5083,5852,4722,3513,1782,4773,8743,7686,4707,9338,547
OPM % 24%23%23%17%16%21%14%20%17%26%28%26%
Other Income 1702602951721553816703355559719091,119
Interest 12710883637989989796143171283
Depreciation 6487609391,0271,0771,1351,1631,2291,1651,2501,4701,704
Profit before tax 2,6462,9002,8591,5541,3502,3361,8862,8843,0616,0487,2017,680
Tax % 26%19%26%19%32%17%-7%32%29%25%23%25%
Net Profit 1,9632,3362,1311,2929471,9502,0261,9522,1824,5075,5785,725
EPS in Rs 23.0827.4324.9815.5911.4123.4924.3823.4726.2354.1466.8767.77
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

Compounded Sales Growth
10 Years:8%
5 Years:13%
3 Years:15%
TTM:17%
Compounded Profit Growth
10 Years:9%
5 Years:23%
3 Years:39%
TTM:3%
Stock Price CAGR
10 Years:5%
5 Years:11%
3 Years:16%
1 Year:5%
Return on Equity
10 Years:16%
5 Years:18%
3 Years:20%
Last Year:18%

Last Updated: Unknown

Balance Sheet

Last Updated: May 13, 2025, 3:37 pm

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Equity Capital 858585838383838383838383
Reserves 7,7809,76812,48412,17912,48913,94115,51617,55819,12923,20328,17133,466
Borrowings 4,4774,3143,3524,9185,0713,8382,2103,0313,3841,3472,0024,677
Other Liabilities 3,5634,2904,4084,4744,7064,5575,4145,9157,1497,5768,52311,200
Total Liabilities 15,90618,45720,33021,65422,34922,41823,22326,58829,74632,20938,78049,427
Fixed Assets 4,6415,3776,5636,9316,9687,1916,8508,2068,1229,21910,42618,293
CWIP 6395297723,3243,4702,9341,5351,5651,2931,0301,4192,399
Investments 1,0672,2483,8332,1102,2982,5872,6782,2122,6164,9864,9304,051
Other Assets 9,55910,3039,1629,2909,6129,70712,16014,60517,71516,97422,00424,684
Total Assets 15,90618,45720,33021,65422,34922,41823,22326,58829,74632,20938,78049,427

Below is a detailed analysis of the balance sheet data for Dr Reddys Laboratories Ltd based on the most recent figures (Mar 2025) and their trends compared to the previous period:

  • For Equity Capital, as of Mar 2025, the value is 83.00 Cr.. The value remains steady. There is no change compared to the previous period (Mar 2024) which recorded 83.00 Cr..
  • For Reserves, as of Mar 2025, the value is 33,466.00 Cr.. The value appears strong and on an upward trend. It has increased from 28,171.00 Cr. (Mar 2024) to 33,466.00 Cr., marking an increase of 5,295.00 Cr..
  • For Borrowings, as of Mar 2025, the value is 4,677.00 Cr.. The value appears to be increasing, which may not be favorable. Additionally, since Reserves exceed Borrowings, this is considered a positive sign. It has increased from 2,002.00 Cr. (Mar 2024) to 4,677.00 Cr., marking an increase of 2,675.00 Cr..
  • For Other Liabilities, as of Mar 2025, the value is 11,200.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 8,523.00 Cr. (Mar 2024) to 11,200.00 Cr., marking an increase of 2,677.00 Cr..
  • For Total Liabilities, as of Mar 2025, the value is 49,427.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 38,780.00 Cr. (Mar 2024) to 49,427.00 Cr., marking an increase of 10,647.00 Cr..
  • For Fixed Assets, as of Mar 2025, the value is 18,293.00 Cr.. The value appears strong and on an upward trend. It has increased from 10,426.00 Cr. (Mar 2024) to 18,293.00 Cr., marking an increase of 7,867.00 Cr..
  • For CWIP, as of Mar 2025, the value is 2,399.00 Cr.. The value appears strong and on an upward trend. It has increased from 1,419.00 Cr. (Mar 2024) to 2,399.00 Cr., marking an increase of 980.00 Cr..
  • For Investments, as of Mar 2025, the value is 4,051.00 Cr.. The value appears to be declining and may need further review. It has decreased from 4,930.00 Cr. (Mar 2024) to 4,051.00 Cr., marking a decrease of 879.00 Cr..
  • For Other Assets, as of Mar 2025, the value is 24,684.00 Cr.. The value appears strong and on an upward trend. It has increased from 22,004.00 Cr. (Mar 2024) to 24,684.00 Cr., marking an increase of 2,680.00 Cr..
  • For Total Assets, as of Mar 2025, the value is 49,427.00 Cr.. The value appears strong and on an upward trend. It has increased from 38,780.00 Cr. (Mar 2024) to 49,427.00 Cr., marking an increase of 10,647.00 Cr..

Notably, the Reserves (33,466.00 Cr.) exceed the Borrowings (4,677.00 Cr.), indicating a solid financial buffer.

Overall, while many items appear to show a positive trend, any significant downward movement or items where Borrowings exceed Reserves warrant further investigation.

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 +-1,604-2,370-1,610-1,890-1,483-769-495-2,255-2,565-4,109-4,034-5,102
Cash from Financing Activity +-24-433-1,700-369-444-2,133-2,516-30-242-2,686-3761,186
Net Cash Flow342-280-47-114-124-31-271,2863-907133726

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 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

MonthMar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024
Promoters26.72%26.71%26.71%26.69%26.69%26.69%26.66%26.65%26.65%26.65%26.64%26.64%
FIIs25.16%25.87%26.26%27.29%27.25%26.99%28.19%28.62%29.13%27.68%27.53%26.85%
DIIs24.78%25.18%24.69%23.38%23.05%21.99%21.04%18.65%18.31%20.72%21.48%22.89%
Public23.07%21.96%22.06%22.36%22.78%24.11%23.93%25.89%25.73%24.78%24.20%23.46%
Others0.28%0.28%0.27%0.25%0.22%0.21%0.18%0.18%0.17%0.17%0.16%0.16%
No. of Shareholders2,63,8032,55,3002,59,2712,46,7882,32,7152,46,7692,43,4452,57,7942,55,5002,67,6943,10,4034,03,669

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 ETF2,208,9110.711279.372,208,9112025-04-22 17:25:370%
Parag Parikh Flexi Cap Fund1,126,0530.98652.191,126,0532025-04-22 17:25:370%
HDFC Flexi Cap Fund - Regular Plan1,000,0001.06579.191,000,0002025-04-22 17:25:370%
UTI Nifty 50 ETF637,1920.71369.05637,1922025-04-22 17:25:370%
Mirae Asset Large & Midcap Fund602,3220.99348.86602,3222025-04-22 17:25:370%
Nippon India Pharma Fund550,0304.45318.57550,0302025-04-22 17:25:370%
ICICI Prudential Pharma Healthcare & Diagnostics (P.H.D) Fund511,6967.55296.37511,6962025-04-22 17:25:370%
HDFC ELSS Tax Saver Fund450,0001.77260.63450,0002025-04-22 17:25:370%
UTI Nifty200 Momentum 30 Index Fund438,4634.05253.95438,4632025-04-22 17:25:370%
Mirae Asset ELSS Tax Saver Fund426,2231.09246.86426,2232025-04-22 17:25:370%

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

After reviewing the key financial ratios for Dr Reddys Laboratories Ltd, here is a detailed analysis based on the latest available data and recent trends:

  • For FaceValue, as of Mar 24, the value is 5.00. This value is within the healthy range. There is no change compared to the previous period (Mar 23) which recorded 5.00.
  • For Basic EPS (Rs.), as of Mar 24, the value is 335.22. This value is within the healthy range. It has increased from 271.47 (Mar 23) to 335.22, marking an increase of 63.75.
  • For Diluted EPS (Rs.), as of Mar 24, the value is 334.59. This value is within the healthy range. It has increased from 270.90 (Mar 23) to 334.59, marking an increase of 63.69.
  • For Cash EPS (Rs.), as of Mar 24, the value is 421.65. This value is within the healthy range. It has increased from 343.37 (Mar 23) to 421.65, marking an increase of 78.28.
  • For Book Value[Excl.RevalReserv]/Share (Rs.), as of Mar 24, the value is 1,693.93. It has increased from 1,397.72 (Mar 23) to 1,693.93, marking an increase of 296.21.
  • For Book Value[Incl.RevalReserv]/Share (Rs.), as of Mar 24, the value is 1,693.93. It has increased from 1,397.72 (Mar 23) to 1,693.93, marking an increase of 296.21.
  • For Revenue From Operations / Share (Rs.), as of Mar 24, the value is 1,679.32. It has increased from 1,480.77 (Mar 23) to 1,679.32, marking an increase of 198.55.
  • For PBDIT / Share (Rs.), as of Mar 24, the value is 529.22. This value is within the healthy range. It has increased from 444.45 (Mar 23) to 529.22, marking an increase of 84.77.
  • For PBIT / Share (Rs.), as of Mar 24, the value is 441.09. This value is within the healthy range. It has increased from 369.41 (Mar 23) to 441.09, marking an increase of 71.68.
  • For PBT / Share (Rs.), as of Mar 24, the value is 430.83. This value is within the healthy range. It has increased from 360.83 (Mar 23) to 430.83, marking an increase of 70.00.
  • For Net Profit / Share (Rs.), as of Mar 24, the value is 333.52. This value is within the healthy range. It has increased from 268.32 (Mar 23) to 333.52, marking an increase of 65.20.
  • For NP After MI And SOA / Share (Rs.), as of Mar 24, the value is 334.41. This value is within the healthy range. It has increased from 270.55 (Mar 23) to 334.41, marking an increase of 63.86.
  • For PBDIT Margin (%), as of Mar 24, the value is 31.51. This value is within the healthy range. It has increased from 30.01 (Mar 23) to 31.51, marking an increase of 1.50.
  • For PBIT Margin (%), as of Mar 24, the value is 26.26. This value exceeds the healthy maximum of 20. It has increased from 24.94 (Mar 23) to 26.26, marking an increase of 1.32.
  • For PBT Margin (%), as of Mar 24, the value is 25.65. This value is within the healthy range. It has increased from 24.36 (Mar 23) to 25.65, marking an increase of 1.29.
  • For Net Profit Margin (%), as of Mar 24, the value is 19.86. This value exceeds the healthy maximum of 10. It has increased from 18.12 (Mar 23) to 19.86, marking an increase of 1.74.
  • For NP After MI And SOA Margin (%), as of Mar 24, the value is 19.91. This value is within the healthy range. It has increased from 18.27 (Mar 23) to 19.91, marking an increase of 1.64.
  • For Return on Networth / Equity (%), as of Mar 24, the value is 19.74. This value is within the healthy range. It has increased from 19.35 (Mar 23) to 19.74, marking an increase of 0.39.
  • For Return on Capital Employeed (%), as of Mar 24, the value is 25.13. This value is within the healthy range. It has decreased from 25.95 (Mar 23) to 25.13, marking a decrease of 0.82.
  • For Return On Assets (%), as of Mar 24, the value is 14.35. This value is within the healthy range. It has increased from 13.96 (Mar 23) to 14.35, marking an increase of 0.39.
  • For Long Term Debt / Equity (X), as of Mar 24, the value is 0.01. This value is below the healthy minimum of 0.2. It has increased from 0.00 (Mar 23) to 0.01, marking an increase of 0.01.
  • For Total Debt / Equity (X), as of Mar 24, the value is 0.05. This value is within the healthy range. It has increased from 0.04 (Mar 23) to 0.05, marking an increase of 0.01.
  • For Asset Turnover Ratio (%), as of Mar 24, the value is 0.78. It has decreased from 0.79 (Mar 23) to 0.78, marking a decrease of 0.01.
  • For Current Ratio (X), as of Mar 24, the value is 2.59. This value is within the healthy range. It has increased from 2.38 (Mar 23) to 2.59, marking an increase of 0.21.
  • For Quick Ratio (X), as of Mar 24, the value is 1.92. This value is within the healthy range. It has increased from 1.81 (Mar 23) to 1.92, marking an increase of 0.11.
  • For Inventory Turnover Ratio (X), as of Mar 24, the value is 0.80. This value is below the healthy minimum of 4. It has decreased from 0.84 (Mar 23) to 0.80, marking a decrease of 0.04.
  • For Dividend Payout Ratio (NP) (%), as of Mar 24, the value is 11.91. This value is below the healthy minimum of 20. It has increased from 11.04 (Mar 23) to 11.91, marking an increase of 0.87.
  • For Dividend Payout Ratio (CP) (%), as of Mar 24, the value is 9.43. This value is below the healthy minimum of 20. It has increased from 8.64 (Mar 23) to 9.43, marking an increase of 0.79.
  • For Earning Retention Ratio (%), as of Mar 24, the value is 88.09. This value exceeds the healthy maximum of 70. It has decreased from 88.96 (Mar 23) to 88.09, marking a decrease of 0.87.
  • For Cash Earning Retention Ratio (%), as of Mar 24, the value is 90.57. This value exceeds the healthy maximum of 70. It has decreased from 91.36 (Mar 23) to 90.57, marking a decrease of 0.79.
  • For Interest Coverage Ratio (X), as of Mar 24, the value is 51.59. This value is within the healthy range. It has decreased from 51.85 (Mar 23) to 51.59, marking a decrease of 0.26.
  • For Interest Coverage Ratio (Post Tax) (X), as of Mar 24, the value is 33.51. This value is within the healthy range. It has increased from 32.30 (Mar 23) to 33.51, marking an increase of 1.21.
  • For Enterprise Value (Cr.), as of Mar 24, the value is 102,592.50. It has increased from 76,382.99 (Mar 23) to 102,592.50, marking an increase of 26,209.51.
  • For EV / Net Operating Revenue (X), as of Mar 24, the value is 3.66. This value exceeds the healthy maximum of 3. It has increased from 3.10 (Mar 23) to 3.66, marking an increase of 0.56.
  • For EV / EBITDA (X), as of Mar 24, the value is 11.62. This value is within the healthy range. It has increased from 10.32 (Mar 23) to 11.62, marking an increase of 1.30.
  • For MarketCap / Net Operating Revenue (X), as of Mar 24, the value is 3.67. This value exceeds the healthy maximum of 3. It has increased from 3.12 (Mar 23) to 3.67, marking an increase of 0.55.
  • For Retention Ratios (%), as of Mar 24, the value is 88.08. This value exceeds the healthy maximum of 70. It has decreased from 88.95 (Mar 23) to 88.08, marking a decrease of 0.87.
  • For Price / BV (X), as of Mar 24, the value is 3.63. This value exceeds the healthy maximum of 3. It has increased from 3.31 (Mar 23) to 3.63, marking an increase of 0.32.
  • For Price / Net Operating Revenue (X), as of Mar 24, the value is 3.67. This value exceeds the healthy maximum of 3. It has increased from 3.12 (Mar 23) to 3.67, marking an increase of 0.55.
  • For EarningsYield, as of Mar 24, the value is 0.05. This value is below the healthy minimum of 5. There is no change compared to the previous period (Mar 23) which recorded 0.05.

Overall, while many metrics show healthy performance, any figures highlighted in red or significant downward trends warrant further investigation.

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Dr Reddys Laboratories Ltd as of May 16, 2025 is: 1,078.08

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 May 16, 2025, Dr Reddys Laboratories Ltd is Overvalued by 12.78% compared to the current share price 1,236.00

Intrinsic Value of Dr Reddys Laboratories Ltd as of May 16, 2025 is: 1,332.77

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 May 16, 2025, Dr Reddys Laboratories Ltd is Undervalued by 7.83% compared to the current share price 1,236.00

Last 5 Year EPS CAGR: 23.62%

*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 (17,140.33 cr) compared to borrowings (3,551.75 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (18.92 cr) and profit (3.00 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: 16.34%)
      • 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: 16.95%)
      • 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: 18.2 (Industry average Stock P/E: 78.95)
      • 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. 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 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 the intrinsic value of Dr Reddys Laboratories Ltd?

Dr Reddys Laboratories Ltd's intrinsic value (as of 16 May 2025) is ₹1078.08 — 12.78% lower the current market price of 1,236.00, indicating overvalued. Calculated using the PE ratio method, this valuation considers the company's 1,03,176 Cr. market cap, FY2025-2026 high/low of ₹1,421/1,020, reserves of 33,466 Cr, and liabilities of 49,427 Cr.

What is the Market Cap of Dr Reddys Laboratories Ltd?

The Market Cap of Dr Reddys Laboratories Ltd is 1,03,176 Cr..

What is the current Stock Price of Dr Reddys Laboratories Ltd as on 16 May 2025?

The current stock price of Dr Reddys Laboratories Ltd as on 16 May 2025 is 1,236.

What is the High / Low of Dr Reddys Laboratories Ltd stocks in FY 2025-2026?

In FY 2025-2026, the High / Low of Dr Reddys Laboratories Ltd stocks is ₹1,421/1,020.

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

The Stock P/E of Dr Reddys Laboratories Ltd is 18.2.

What is the Book Value of Dr Reddys Laboratories Ltd?

The Book Value of Dr Reddys Laboratories Ltd is 402.

What is the Dividend Yield of Dr Reddys Laboratories Ltd?

The Dividend Yield of Dr Reddys Laboratories Ltd is 0.65 %.

What is the ROCE of Dr Reddys Laboratories Ltd?

The ROCE of Dr Reddys Laboratories Ltd is 23.1 %.

What is the ROE of Dr Reddys Laboratories Ltd?

The ROE of Dr Reddys Laboratories Ltd is 18.3 %.

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