Dr. Reddys Laboratories Ltd Stock Analysis

BSE: 500124 | NSE: DRREDDY | Pharmaceuticals & Drugs | Large Cap

BSE Share Price 26-May-2023 18:01
4530.05 27.90 (0.62%)

DeciZen - Make an Informed Decision on Dr. Reddys Lab

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

Semi Strong

Dr. Reddys Lab Price Chart

P/E Ratio ( CD) :
16.74
Market Cap :
75,438 Cr.
52-wk low :
3,996.1
52-wk high :
4,987
Bole Toh?

1. Is Dr. Reddys Laboratories Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Dr. Reddys Laboratories Ltd is a good quality company.

2. Is Dr. Reddys Laboratories Ltd undervalued or overvalued?

The key valuation ratios of Dr. Reddys Laboratories Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Dr. Reddys Laboratories Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Dr. Reddys Laboratories Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Dr. Reddys Lab:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Dr. Reddys Laboratories Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 17.7%18.1%17.8%16.5%8.1%5.8%10.7%11.5%10.1%9.4%-
Value Creation Index 0.60.60.60.5-0.3-0.5-0.10.0-0.1-0.2-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 11,89613,41515,02315,56814,19614,28115,44817,51719,04821,54523,460
YoY Gr. Rt. %-12.8%12%3.6%-8.8%0.6%8.2%13.4%8.7%13.1%-
Adj EPS 90.7112.8134142.378.357.1110.2119.6112.3118.7270.7
YoY Gr. Rt. %-24.3%18.8%6.2%-45%-27%93%8.5%-6.1%5.7%-
BVPS (₹) 371457.3572.9731.5734.7752.4840932.31,052.61,1461,398.3
Adj Net Profit 1,5411,9192,2822,4271,2979471,8301,9871,8681,9764,507
Cash Flow from Ops. 1,3781,9702,5243,2632,1441,8032,8702,9843,5702,811-
Debt/CF from Ops. 2.72.31.712.32.81.30.70.91.2-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 6.8%8.7%11.7%13.1%
Adj EPS 3%8.7%2.5%5.7%
BVPS 13.49.310.98.9
Share Price 7.9% 18% 3.6% 3.1%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 27.12725.821.710.57.613.813.411.210.721.3
Op. Profit Mgn % 22.924.223.425.817.516.520.614.120.317.526.9
Net Profit Mgn % 1314.315.215.58.96.411.911.39.89.219.2
Debt to Equity 0.60.60.40.30.40.40.30.10.20.20
Working Cap Days 179185187193212222214207213216315
Cash Conv. Cycle 115116122128140137130126132135183

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 21.30%

Sales growth is growing at healthy rate in last 3 years 11.73%

Sales growth is good in last 4 quarters at 14.21%

Net Profit has been subdued in last 3 years 2.52%

Latest Financials - Dr. Reddys Laboratories Ltd.

Standalone Consolidated
TTM EPS (₹) 156.9 270.7
TTM Sales (₹ Cr.) 16,299 23,460
BVPS (₹.) 1,229.5 1,398.3
Reserves (₹ Cr.) 20,391 23,203
P/BV 3.68 3.24
PE 28.87 16.74
From the Market
52 Week Low / High (₹) 3996.10 / 4987.00
All Time Low / High (₹) 6.25 / 5613.65
Market Cap (₹ Cr.) 75,438
Equity (₹ Cr.) 83.3
Face Value (₹) 5
Industry PE 37.1

Management X-Ray of Dr. Reddys Lab :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Dr. Reddys Lab

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

Dr. Reddys Laboratories Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Dr. Reddys Lab on 26-May-2023 18:01 is : 4,530.1.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 26-May-2023 18:01 the market cap of Dr. Reddys Lab stood at ₹ 75,438.
The latest PE ratio of Dr. Reddys Lab as of 26-May-2023 18:01 is 28.87.
The latest PB ratio of Dr. Reddys Lab as of 26-May-2023 18:01 is 3.68
The 52-week high of Dr. Reddys Lab is ₹ 4,987 and the 52-week low is ₹ 3,996.1.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of Dr. Reddys Lab is ₹ 16,299 ( Cr.) .

About Dr. Reddys Laboratories Ltd

Dr. Reddy’s Laboratories Limited commenced its generics business in India in 1986 and is today a trusted name in the healthcare industry consistently serving the needs of millions of patients with high quality, affordable and innovative medicines across therapy areas. The company’s shares trade on the Bombay Stock Exchange and the National Stock Exchange in India and on the New York Stock Exchange in the United States.

Business area of the company

The company is a leading India-based pharmaceutical company headquartered and having its registered office in Hyderabad, Telangana, India. Through its three businesses - Pharmaceutical Services and Active Ingredients, Global Generics and Proprietary Products - the Company offers a portfolio of products and services, including Active Pharmaceutical Ingredients (APIs), Custom Pharmaceutical Services (CPS), generics, biosimilars and differentiated formulations.

Products

  • Generics
  • Over-the-counter
  • APIs (Active Pharmaceutical Ingredients)
  • Biologics
  • Differentiated Formulations

Core Businesses

Pharmaceutical services & active ingredients

  • Global leader in integrated development, manufacturing and supply of APIs.
  • Contract research, development and manufacturing services.

Global Generics

  • Finished dosage businesses in distribution-driven unbranded as well as detailing-driven branded markets.
  • North America, Europe, India, China, Russia & CIS countries are key markets in this segment.

Proprietary Products

  • Developing differentiated formulations that present significantly enhanced benefits in terms of efficacy, ease of use, and the resolution of unmet patient needs.

Awards & Recognitions

  • India’s Best Managed Boards by Mint and Aon Hewitt and by Economic Times and Hays in their respective studies.
  • India’s Best Companies to Work For in the Biotechnology and Pharmaceuticals sector by Great Place To Work Institute.
  • ‘Best Places to Work’ in 2017 in New Jersey by NJBIZ.
  • Global Generics & Biosimilar Award 2018 for CSR initiative of the year
  • India Pharma Corporate Social Responsibility (CSR) programme of the year Award 2018 by Department of Pharmaceuticals, Government of India.
  • Dr. Reddy’s ranked among the top 10 in the Forbes China 2018 list of leading Indian Companies in China.
  • Dr. Reddy’s inclusion in the 2019 Bloomberg Gender-Equality Index.
  • Global Generics & Biosimilars Award 2019: API supplier of the Year at the 6th Annual Global Generics & Biosimilars Awards.
  • Winner of Golden Peacock International Award for Sustainability for the year 2019.

Milestones

  • 1984: The birth of a dream
  • 1991: From molecules to affordable medicines
  • 1995: Expanding to reach patients in other countries
  • 2001: Spreading wings globally
  • 2007: Accelerating access to expensive therapies
  • 2010: From medicines to health
  • 2012: Strengthening capabilities
  • 2014: Re-dedicating to patient-centricity
  • 2015: Dr. Reddy’s Laboratories signs commercialization deal with Hatchtech
  • 2016: Dr. Reddy’s completes acquisition of product portfolio from TEVA
  • 2017: Dr. Reddy's expands commercial operations in Europe
  • 2018: Dr. Reddy's Laboratories announces the launch of Tetrabenazine Tablets in the U.S. Market
  • 2019: Dr. Reddy’s Laboratories enters Nutrition Segment with Celevida in India
  • 2020: Dr. Reddy’s Laboratories joins Science Based Targets initiative (SBTi) and sets 2030 GHG emission targets
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