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Dr. Reddys Laboratories Ltd Stock Analysis

Large Cap
Evaluated by 7496 users | BSE: 500124 | NSE: DRREDDY |
Pharmaceuticals & Drugs

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...

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Decision Maker

Decision Maker

Consolidated basis
The valuation guidance of this company is based on Consolidated basis.
1. Right Stock
Very Good
Very Good
2. Right Price
Right Price
Price Chart
3. Right Time
Right Price
10YEAR X-RAY

10 Year X-Ray

Consolidated basis Standalone basis P Consolidated basis P

Analysis of Financial Track Record

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'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 17.26%19.35%17.5%17.96%17.41%16.52%8.11%5.76%10.66%11.52%
Value Creation Index 0.650.740.520.560.510.44-0.29-0.50-0.070.00
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 7,4979,81511,89613,41515,02315,56814,19614,28115,44817,517
Y-o-Y Gr. Rt.-30.9%21.2%12.8%12%3.6%-8.8%0.6%8.2%13.4%
Adjusted EPS (Rs.) 58.1378.7690.02112.98130.96142.2878.2657.1110.19119.55
Y-o-Y Gr. Rt.-35.5%14.3%25.5%15.9%8.6%-45%-27%93%8.5%
Book Value per Share (Rs.) 235.9290.91371.04457.33572.92731.49734.72752.35840.01932.31
Adjusted Net Profit 9841,3351,5291,9222,2312,4271,2979471,8301,987
Net Op. Cash Flow (Rs. Cr.) 7551,6131,3781,9702,5243,2632,1441,8032,8702,984
Debt to Cash Flow from Ops 3.142.012.672.271.711.032.292.811.340.74
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Dr. Reddys Laboratories Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 9.9%3.1%7.3%13.4%
Adjusted EPS 8.3%-1.8%15.2%8.5%
Book Value per Share 16.510.28.311
Share Price 13.7% 12.7% 38% 42.1%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 25.229.6126.922725.1921.6510.457.6313.7613.41
Operating Profit Margin (%) 20.8824.922.8924.2323.3525.7517.4616.520.5714.14
Net Profit Margin (%) 13.1213.6112.8514.3314.8515.458.896.3911.5611.02
Debt to Equity 0.590.660.580.580.440.270.40.410.280.14
Working Capital Days 181177179185187193212222214207
Cash Conversion Cycle 70110115116122128140137130126
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
shareholding patterns

Shareholding Pattern

Entity Percentage Holding
Promoters 26.74%
Institutions 43.93%
Non-Institutions 17.06%
Others 12.27%
shareholding patterns

Promoter's Holding & Share Pledging

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

FAQs

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

MoneyWorks4Me analysed the past 10-year performance of Dr. Reddys Laboratories Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Dr. Reddys Laboratories Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.
2. Is current market price of Dr. Reddys Laboratories Ltd a good price to buy it?

The 5-year analysis of Dr. Reddys Laboratories Ltd's performance infers:

Dr. Reddys Laboratories Ltd earnings have declined by -1.8%, whereas share price has appreciated 12.7% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

3. What is Dr. Reddys Laboratories Ltd share price return in the past 10 years ?

We analysed the performance of Dr. Reddys Laboratories Ltd share prices over the last 10 years. Here is what we found out:

Dr. Reddys Laboratories Ltd share price has appreciated 12.3% annually over the past ten years.

shareholding patterns

About Company

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.

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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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Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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