Is Dr. Reddys Laboratories 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 .

Is Dr. Reddys Laboratories 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 Somewhat Undervalued zone .

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

Dr. Reddys Laboratories Ltd share price has appreciated 5.4% annually (CAGR) over the past ten years.

Is Dr. Reddys Laboratories a good buy now?

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

What is the P/E ratio of Dr. Reddys Laboratories?

The latest standalone P/E ratio of Dr. Reddys Laboratories as of 21-Nov-2024 is 21.06.

What is the P/B ratio of Dr. Reddys Laboratories?

The latest standalone P/B ratio of Dr. Reddys Laboratories as of 21-Nov-2024 is 3.76.

What is the 52-week high and low of Dr. Reddys Laboratories?

The 52-week high of Dr. Reddys Laboratories is Rs. 1420.20 and the 52-week low is Rs. 1074.35.

Dr. Reddys Laboratories Ltd - Stock Valuation and Financial Performance

Name: Dr. Reddys Laboratories
Brand: Dr. Reddys Laboratories

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

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Dr. Reddys Lab Share Price

₹1,194 -19.95 -1.64%
as on 21-Nov'24 14:01

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

Standalone Basis ^P Consolidated Basis ^P

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

Value Creation ⓘ

Value Creation Index Colour Code Guide ⓘ

	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24	TTM
ROCE % ⓘ	22.7%	19.6%	9.8%	8.2%	13.7%	11.1%	15.5%	14.6%	26.2%	26.9%	-
Value Creation Index ⓘ	1.0	0.7	-0.1	-0.3	0.2	0.0	0.4	0.3	1.3	1.4	-
Growth Parameters ⓘ Growth Parameters Colour Code Guide ⓘ
Sales ⓘ	15,023	15,568	14,196	14,281	15,448	17,517	19,048	21,545	24,670	28,011	29,349
Sales YoY Gr.	-	3.6%	-8.8%	0.6%	8.2%	13.4%	8.7%	13.1%	14.5%	13.5%	-
Adj EPS ⓘ	26.8	28.5	15.7	11.4	22	23.9	22.5	23.7	53.3	65.9	64
YoY Gr.	-	6.2%	-45%	-27%	93%	8.5%	-6.1%	5.7%	124.6%	23.6%	-
BVPS (₹) ⓘ	114.6	146.3	146.9	150.5	168	186.5	210.5	229.2	277.8	337.2	368.5
Adj Net Profit ⓘ	2,282	2,427	1,297	947	1,830	1,987	1,868	1,976	4,437	5,496	5,338
Cash Flow from Ops. ⓘ	2,524	3,263	2,144	1,803	2,870	2,984	3,570	2,811	5,888	4,543	-
Debt/CF from Ops. ⓘ	1.7	1	2.3	2.8	1.3	0.7	0.9	1.2	0.2	0.4	-

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%
BVPSⓘ	12.7%	15%	17%	21.4%
Share Price	5.4%	15.7%	8.5%	5.7%

Key Financial Parameters ⓘ

Performance Ratio Colour Code Guide ⓘ

	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24	TTM
Return on Equity % ⓘ	25.8	21.7	10.5	7.6	13.8	13.4	11.2	10.7	20.9	21.3	18.1
Op. Profit Mgn % ⓘ	23.4	25.8	17.5	16.5	20.6	14.1	20.3	17.5	26.2	28.3	27.5
Net Profit Mgn % ⓘ	15.2	15.5	8.9	6.4	11.9	11.3	9.8	9.2	18	19.6	18.2
Debt to Equity ⓘ	0.4	0.3	0.4	0.4	0.3	0.1	0.2	0.2	0.1	0.1	0
Working Cap Days ⓘ	187	193	212	222	214	207	213	216	212	221	153
Cash Conv. Cycle ⓘ	122	128	140	137	130	126	132	135	131	128	84

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 18.10%

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 13.19%

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Latest Financials - Dr. Reddys Laboratories Ltd.

	Standalone	Consolidated
TTM EPS (₹)	57.6	64
TTM Sales (₹ Cr.)	20,747	29,349
BVPS (₹.) ⓘ	322.5	368.5
Reserves (₹ Cr.) ⓘ	26,825	30,666
P/BV ⓘ	3.76	3.29
PE ⓘ	21.06	18.97

From the Market
52 Week Low / High (₹)	1074.35 / 1420.20
All Time Low / High (₹)	1.25 / 1420.20
Market Cap (₹ Cr.)	1,01,290
Equity (₹ Cr.)	83.4
Face Value (₹)	1
Industry PE ⓘ	43

Management X-Ray of Dr. Reddys Lab:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged ^*

0.00

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

Valuation of Dr. Reddys Lab

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Analyst's Notes

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Key Ratios of Dr. Reddys Lab

Standalone Basis Consolidated Basis

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Sales	15,023	15,568	14,196	14,281	15,448	17,517	19,048	21,545	24,670	28,011
Operating Expenses ⓘ	11,530	11,983	11,724	11,930	12,270	15,047	15,178	17,778	18,321	20,078
Manufacturing Costs	2,338	2,172	2,217	2,076	1,764	1,760	1,895	1,993	2,216	2,621
Material Costs	3,786	3,759	3,697	4,040	4,495	5,554	6,079	7,442	7,658	8,209
Employee Cost	2,945	3,117	3,107	3,215	3,356	3,380	3,630	3,886	4,647	5,030
Other Costs ⓘ	2,461	2,936	2,704	2,600	2,655	4,352	3,574	4,457	3,800	4,218
Operating Profit ⓘ	3,494	3,585	2,472	2,351	3,178	2,470	3,870	3,767	6,349	7,933
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 ⓘ	275	295	172	155	338	621	291	485	1,056	894
Interest ⓘ	109	83	63	79	89	98	97	96	143	171
Depreciation ⓘ	760	939	1,027	1,077	1,135	1,163	1,229	1,165	1,250	1,470
Exceptional Items ⓘ	0	0	0	0	0	0	0	0	0	0
Profit Before Tax ⓘ	2,900	2,859	1,554	1,350	2,336	1,886	2,884	3,061	6,049	7,201
Tax ⓘ	563	751	297	438	386	-140	932	879	1,541	1,623
Profit After Tax	2,336	2,108	1,257	912	1,950	2,026	1,952	2,183	4,507	5,578
PAT Margin (%)	15.6%	13.5%	8.9%	6.4%	12.6%	11.6%	10.2%	10.1%	18.3%	19.9%
Adjusted EPS (₹)	27.4	25.0	15.6	11.4	23.5	24.4	23.5	26.2	54.1	66.9
Dividend Payout Ratio (%)	15%	16%	26%	35%	17%	21%	21%	23%	15%	12%

Balance Sheet

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Equity and Liabilities
Shareholders Fund	9,763	12,479	12,182	12,489	13,944	15,495	17,515	19,069	23,140	28,124
Share Capital ⓘ	85	85	83	83	83	83	83	83	83	83
Reserves ⓘ	9,677	12,394	12,099	12,406	13,861	15,412	17,432	18,986	23,057	28,040
Minority Interest	0	0	0	0	0	0	0	0	0	0
Debt	3,617	3,340	4,908	5,065	3,413	1,784	2,944	3,283	867	1,871
Long Term Debt	1,432	1,069	545	2,509	2,200	130	630	575	128	599
Short Term Debt	2,186	2,272	4,363	2,556	1,213	1,653	2,315	2,708	739	1,272
Trade Payables	867	907	1,057	1,335	1,367	1,525	1,811	2,266	2,268	2,614
Others Liabilities ⓘ	4,106	3,067	2,992	3,115	3,310	3,202	3,278	3,852	5,304	5,197
Total Liabilities ⓘ	18,353	19,794	21,138	22,004	22,034	22,005	25,548	28,470	31,580	37,806
Fixed Assets
Gross Block	12,574	15,020	15,932	17,436	18,048	19,336	21,887	23,096	25,567	28,062
Accumulated Depreciation	7,170	8,457	9,002	10,468	10,857	12,485	13,632	14,895	16,348	17,636
Net Fixed Assetsⓘ	5,404	6,563	6,931	6,968	7,191	6,850	8,255	8,202	9,219	10,426
CWIP ⓘ	529	772	3,325	3,471	2,934	1,535	1,565	1,293	1,030	1,419
Investmentsⓘ	2,248	3,833	2,110	2,298	2,587	2,678	2,212	2,616	4,986	4,931
Inventories	2,570	2,558	2,853	2,909	3,358	3,507	4,541	5,088	4,867	6,355
Trade Receivables	4,101	4,125	3,799	4,053	3,987	5,028	4,964	6,676	7,249	8,030
Cash Equivalents	1,872	492	387	264	223	205	2,079	2,419	1,730	1,728
Others Assetsⓘ	1,629	1,450	1,735	2,042	1,755	2,202	1,933	2,175	2,499	4,917
Total Assets ⓘ	18,353	19,794	21,138	22,004	22,034	22,005	25,548	28,470	31,580	37,806

Cash Flow

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Cash Flow From Operating Activity ⓘ	2,524	3,263	2,144	1,803	2,870	2,984	3,570	2,811	5,888	4,543
PBT ⓘ	2,900	2,859	1,554	1,350	2,336	1,886	2,884	3,061	6,049	7,201
Adjustment ⓘ	1,654	1,108	1,687	1,625	835	2,563	2,087	2,334	1,696	1,365
Changes in Working Capital ⓘ	-1484	-3	-520	-897	184	-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	-695	2,187	-425	-228	-21	-1,140	-1,153	-2,337	-1,572
Others ⓘ	81	128	61	27	78	102	122	87	78	178
Cash Flow From Financing Activityⓘ	-433	-1,700	-369	-444	-2,133	-2,516	-30	-242	-2,686	-376
Net Proceeds from Shares ⓘ	1	0	0	0	0	0	27	33	16	81
Net Proceeds from Borrowing ⓘ	-373	-1,171	-522	1,891	-6	-2,292	6	0	0	0
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	-27	584	-1,870	-1,634	268	484	274	-2,019	435
Net Cash Flow ⓘ	-174	-477	-65	-129	-35	-24	1,275	-70	-936	139

Finance Ratio

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Ratios
ROE (%)	26.63	18.95	10.2	7.4	14.75	13.76	11.82	11.93	21.36	21.76
ROCE (%)	22.7	19.55	9.77	8.21	13.66	11.12	15.49	14.59	26.22	26.86
Asset Turnover Ratio	0.88	0.82	0.69	0.66	0.7	0.8	0.8	0.8	0.82	0.81
PAT to CFO Conversion(x)	1.08	1.55	1.71	1.98	1.47	1.47	1.83	1.29	1.31	0.81
Working Capital Days
Receivable Days	90	96	102	100	95	94	96	99	103	100
Inventory Days	60	60	70	74	74	72	77	82	74	73
Payable Days	85	86	97	108	110	95	100	100	108	109

Dr. Reddys Laboratories Ltd Stock News

Dr. Reddys Laboratories Ltd FAQs

What is the share price of Dr. Reddys Lab?

Company share prices are keep on changing according to the market conditions. The closing price of Dr. Reddys Lab on 21-Nov-2024 14:01 is ₹1,194.

What is the market cap of Dr. Reddys Lab?

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 21-Nov-2024 14:01 the market cap of Dr. Reddys Lab stood at ₹1,01,290.1.

What is the P/E ratio of Dr. Reddys Lab?

The latest P/E ratio of Dr. Reddys Lab as of 21-Nov-2024 14:01 is 21.06.

What is the P/B ratio of Dr. Reddys Lab?

The latest P/B ratio of Dr. Reddys Lab as of 21-Nov-2024 14:01 is 3.76.

What is the 52-week high and low of Dr. Reddys Lab?

The 52-week high of Dr. Reddys Lab is ₹1,420.2 and the 52-week low is ₹1,074.4.

What is the TTM revenue of Dr. Reddys Lab?

The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Dr. Reddys Lab is ₹20,747 ( 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