Dr. Reddys Laboratories Ltd - Stock Valuation and Financial Performance

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

Dr. Reddys Lab Share Price

6,721.65 125.85 1.91%
as on 12-Jul'24 16:01

DeciZen - make an informed investing decision on Dr. Reddys Lab

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Dr. Reddys Laboratories stock performance -

mw4me loader
P/E Ratio (CD):
20.10
Market Cap:
1,12,137.1 Cr.
52-wk low:
5,077.7
52-wk high:
6,721.7

Is Dr. Reddys Laboratories Ltd an attractive stock to invest in?

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 Strong which suggest that the price of Dr. Reddys Laboratories Ltd is likely to Rise 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'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
ROCE % 17.8%16.5%8.1%5.8%10.7%11.5%10.1%9.4%19.2%20.5%-
Value Creation
Index
0.60.5-0.3-0.5-0.10.0-0.1-0.20.70.8-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 15,02315,56814,19614,28115,44817,51719,04821,54524,67028,01128,011
Sales YoY Gr.-3.6%-8.8%0.6%8.2%13.4%8.7%13.1%14.5%13.5%-
Adj EPS 134142.378.357.1110.2119.6112.3118.7266.5329.4334.4
YoY Gr.-6.2%-45%-27%93%8.5%-6.1%5.7%124.5%23.6%-
BVPS (₹) 572.9731.5734.7752.4840932.31,052.61,1461,3891,686.11,685.8
Adj Net
Profit
2,2822,4271,2979471,8301,9871,8681,9764,4375,4965,578
Cash Flow from Ops. 2,5243,2632,1441,8032,8702,9843,5702,8115,8884,543-
Debt/CF from Ops. 1.712.32.81.30.70.91.20.20.4-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 7.2%12.6%13.7%13.5%
Adj EPS 10.5%24.5%43.2%23.6%
BVPS12.7%15%17%21.4%
Share Price 9.5% 20.6% 7.3% 30.7%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
25.821.710.57.613.813.411.210.720.921.319.8
Op. Profit
Mgn %
23.425.817.516.520.614.120.317.526.228.329.2
Net Profit
Mgn %
15.215.58.96.411.911.39.89.21819.619.9
Debt to
Equity
0.40.30.40.40.30.10.20.20.10.10
Working Cap
Days
187193212222214207213216212221154
Cash Conv.
Cycle
12212814013713012613213513112895

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 19.80%

Sales growth is growing at healthy rate in last 3 years 13.72%

Net Profit is growing at healthy rate in last 3 years 43.15%

Sales growth is good in last 4 quarters at 17.08%

No data to display

Latest Financials - Dr. Reddys Laboratories Ltd.

Standalone Consolidated
TTM EPS (₹) 260.3 334.4
TTM Sales (₹ Cr.) 19,484 28,011
BVPS (₹.) 1,445.2 1,685.8
Reserves (₹ Cr.) 24,026 28,040
P/BV 4.65 3.99
PE 25.83 20.10
From the Market
52 Week Low / High (₹) 5077.70 / 6721.65
All Time Low / High (₹) 6.25 / 6619.05
Market Cap (₹ Cr.) 1,12,137
Equity (₹ Cr.) 83.4
Face Value (₹) 5
Industry PE 43.9

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 (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales15,02315,56814,19614,28115,44817,51719,04821,54524,67028,011
Operating Expenses 11,53011,98311,72411,93012,27015,04715,17817,77818,32120,078
Manufacturing Costs2,3382,1722,2172,0761,7641,7601,8951,9932,2162,621
Material Costs3,7863,7593,6974,0404,4955,5546,0797,4427,6588,209
Employee Cost 2,9453,1173,1073,2153,3563,3803,6303,8864,6475,030
Other Costs 2,4612,9362,7042,6002,6554,3523,5744,4573,8004,218
Operating Profit 3,4943,5852,4722,3513,1782,4703,8703,7676,3497,933
Operating Profit Margin (%) 23.3%23.0%17.4%16.5%20.6%14.1%20.3%17.5%25.7%28.3%
Other Income 2752951721553386212914851,056894
Interest 10983637989989796143171
Depreciation 7609391,0271,0771,1351,1631,2291,1651,2501,470
Exceptional Items 0000000000
Profit Before Tax 2,9002,8591,5541,3502,3361,8862,8843,0616,0497,201
Tax 563751297438386-1409328791,5411,623
Profit After Tax 2,3362,1081,2579121,9502,0261,9522,1834,5075,578
PAT Margin (%) 15.6%13.5%8.9%6.4%12.6%11.6%10.2%10.1%18.3%19.9%
Adjusted EPS (₹)137.1124.977.957.0117.5121.9117.3131.2270.6334.4
Dividend Payout Ratio (%)15%16%26%35%17%21%21%23%15%12%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 9,76312,47912,18212,48913,94415,49517,51519,06923,14028,124
Share Capital 85858383838383838383
Reserves 9,67712,39412,09912,40613,86115,41217,43218,98623,05728,040
Minority Interest0000000000
Debt3,6173,3404,9085,0653,4131,7842,9443,2838671,871
Long Term Debt1,4321,0695452,5092,200130630575128599
Short Term Debt2,1862,2724,3632,5561,2131,6532,3152,7087391,272
Trade Payables8679071,0571,3351,3671,5251,8112,2662,2682,614
Others Liabilities 4,1063,0672,9923,1153,3103,2023,2783,8525,3045,197
Total Liabilities 18,35319,79421,13822,00422,03422,00525,54828,47031,58037,806

Fixed Assets

Gross Block12,57415,02015,93217,43618,04819,33621,88723,09625,56728,062
Accumulated Depreciation7,1708,4579,00210,46810,85712,48513,63214,89516,34817,636
Net Fixed Assets5,4046,5636,9316,9687,1916,8508,2558,2029,21910,426
CWIP 5297723,3253,4712,9341,5351,5651,2931,0301,419
Investments 2,2483,8332,1102,2982,5872,6782,2122,6164,9864,931
Inventories2,5702,5582,8532,9093,3583,5074,5415,0884,8676,355
Trade Receivables4,1014,1253,7994,0533,9875,0284,9646,6767,2498,030
Cash Equivalents 1,8724923872642232052,0792,4191,7301,728
Others Assets1,6291,4501,7352,0421,7552,2021,9332,1752,4994,917
Total Assets 18,35319,79421,13822,00422,03422,00525,54828,47031,58037,806

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity 2,5243,2632,1441,8032,8702,9843,5702,8115,8884,543
PBT 2,9002,8591,5541,3502,3361,8862,8843,0616,0497,201
Adjustment 1,6541,1081,6871,6258352,5632,0872,3341,6961,365
Changes in Working Capital -1484-3-520-897184-754-829-1841-786-2018
Tax Paid -546-701-577-276-484-711-572-744-1,071-2,005
Cash Flow From Investing Activity -2,265-2,039-1,840-1,488-773-492-2,266-2,639-4,137-4,028
Capex -1,514-1,473-4,089-1,090-623-573-1,248-1,573-1,878-2,635
Net Investments -831-6952,187-425-228-21-1,140-1,153-2,337-1,572
Others 811286127781021228778178
Cash Flow From Financing Activity -433-1,700-369-444-2,133-2,516-30-242-2,686-376
Net Proceeds from Shares 10000027331681
Net Proceeds from Borrowing -373-1,171-5221,891-6-2,2926000
Interest Paid -109-92-92-133-161-161-132-135-185-227
Dividend Paid -359-411-339-332-332-331-415-415-498-665
Others 407-27584-1,870-1,634268484274-2,019435
Net Cash Flow -174-477-65-129-35-241,275-70-936139
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)26.6318.9510.27.414.7513.7611.8211.9321.3621.76
ROCE (%)22.719.559.778.2113.6611.1215.4914.5926.2226.86
Asset Turnover Ratio0.880.820.690.660.70.80.80.80.820.81
PAT to CFO Conversion(x)1.081.551.711.981.471.471.831.291.310.81
Working Capital Days
Receivable Days909610210095949699103100
Inventory Days60607074747277827473
Payable Days85869710811095100100108109

Dr. Reddys Laboratories Ltd Stock 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 12-Jul-2024 16:01 is ₹6,721.7.
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 12-Jul-2024 16:01 the market cap of Dr. Reddys Lab stood at ₹1,12,137.1.
The latest P/E ratio of Dr. Reddys Lab as of 12-Jul-2024 16:01 is 25.83.
The latest P/B ratio of Dr. Reddys Lab as of 12-Jul-2024 16:01 is 4.65.
The 52-week high of Dr. Reddys Lab is ₹6,721.7 and the 52-week low is ₹5,077.7.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Dr. Reddys Lab is ₹19,484 ( 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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