Dr. Reddy's Laboratories
Market Cap
₹466.4b
Last Updated
2019/11/12 12:43 UTC
Data Sources
Company Financials +
Executive Summary
Dr. Reddy's Laboratories Limited operates as an integrated pharmaceutical company worldwide.
Snowflake
Fundamentals
Flawless balance sheet established dividend payer.
Similar Companies
Share Price & News
How has Dr. Reddy's Laboratories's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 500124 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-0.01%
500124
-2.1%
IN Pharmaceuticals
-1.1%
IN Market
1 Year Return
15.6%
500124
-13.4%
IN Pharmaceuticals
5.5%
IN Market
Return vs Industry: 500124 exceeded the Indian Pharmaceuticals industry which returned -13.4% over the past year.
Return vs Market: 500124 exceeded the Indian Market which returned 5.5% over the past year.
Shareholder returns
| 500124 | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.01% | -2.1% | -1.1% |
| 30 Day | 6.3% | 9.1% | 5.8% |
| 90 Day | 12.1% | 3.4% | 9.0% |
| 1 Year | 16.5%15.6% | -12.6%-13.4% | 7.6%5.5% |
| 3 Year | -12.9%-14.9% | -16.6%-18.4% | 32.3%25.6% |
| 5 Year | -15.1%-18.0% | -12.2%-14.9% | 39.1%26.3% |
Price Volatility Vs. Market
How volatile is Dr. Reddy's Laboratories's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 year ago | Simply Wall St
Should You Be Tempted To Sell Dr Reddy's Laboratories Limited (BOM:500124) At Its Current PE Ratio?Valuation
Is Dr. Reddy's Laboratories undervalued compared to its fair value and its price relative to the market?
17.45x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 500124 (₹2815.05) is trading above our estimate of fair value (₹1461.84)
Significantly Below Fair Value: 500124 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 500124 is poor value based on its PE Ratio (17.4x) compared to the Pharmaceuticals industry average (16.3x).
PE vs Market: 500124 is poor value based on its PE Ratio (17.4x) compared to the Indian market (13.2x).
Price to Earnings Growth Ratio
PEG Ratio: 500124's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: 500124 is overvalued based on its PB Ratio (3x) compared to the IN Pharmaceuticals industry average (1.4x).
Next Steps
Future Growth
How is Dr. Reddy's Laboratories forecast to perform in the next 1 to 3 years based on estimates from 31 analysts?
-1.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 500124's earnings are forecast to decline over the next 3 years (-1% per year).
Earnings vs Market: 500124's earnings are forecast to decline over the next 3 years (-1% per year).
High Growth Earnings: 500124's earnings are forecast to decline over the next 3 years.
Revenue vs Market: 500124's revenue (8.8% per year) is forecast to grow slower than the Indian market (11.1% per year).
High Growth Revenue: 500124's revenue (8.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 500124's Return on Equity is forecast to be low in 3 years time (14%).
Next Steps
Past Performance
How has Dr. Reddy's Laboratories performed over the past 5 years?
-5.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 500124 has high quality earnings.
Growing Profit Margin: 500124's current net profit margins (16.2%) are higher than last year (10.7%).
Past Earnings Growth Analysis
Earnings Trend: 500124's earnings have declined by -5.6% per year over the past 5 years.
Accelerating Growth: 500124's earnings growth over the past year (67.5%) exceeds its 5-year average (-5.6% per year).
Earnings vs Industry: 500124 earnings growth over the past year (67.5%) exceeded the Pharmaceuticals industry 18.6%.
Return on Equity
High ROE: 500124's Return on Equity (17.4%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Dr. Reddy's Laboratories's financial position?
Financial Position Analysis
Short Term Liabilities: 500124's short term assets (₹120.1B) exceeds its short term liabilities (₹61.2B)
Long Term Liabilities: 500124's short term assets (120.1B) exceeds its long term liabilities (18.9B)
Debt to Equity History and Analysis
Debt Level: 500124's debt to equity ratio (19.3%) is considered satisfactory
Reducing Debt: 500124's debt to equity ratio has reduced from 38.2% to 19.3% over the past 5 years.
Debt Coverage: 500124's debt is well covered by operating cash flow (144.5%).
Interest Coverage: 500124's interest payments on its debt are well covered by EBIT (147.7x coverage).
Balance Sheet
Inventory Level: 500124 has a high level of physical assets or inventory.
Debt Coverage by Assets: 500124's debt is covered by short term assets (assets are 4x debt).
Next Steps
Dividend
What is Dr. Reddy's Laboratories's current dividend yield, its reliability and sustainability?
0.71%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: 500124's dividend (0.71%) is higher than the bottom 25% of dividend payers in the Indian market (0.56%).
High Dividend: 500124's dividend (0.71%) is low compared to the top 25% of dividend payers in the Indian market (2.36%).
Stability and Growth of Payments
Stable Dividend: 500124's dividends per share have been stable in the past 10 years.
Growing Dividend: 500124's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (12.4%), 500124's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 500124's dividends in 3 years are forecast to be well covered by earnings (16.8% payout ratio).
Next Steps
Management
What is the CEO of Dr. Reddy's Laboratories's salary, the management and board of directors tenure and is there insider trading?
2.4yrs
Average management tenure
CEO
Erez Israeli (51yo)
0.3yrs
Tenure
Mr. Erez Israeli has been Chief Executive Officer of Dr. Reddy's Laboratories Limited since August 1, 2019. Mr. Israeli served as Chief Operating Officer, Global Head Generics & PSAI Business and Member of ...
Management Age and Tenure
2.4yrs
Average Tenure
52yo
Average Age
Experienced Management: 500124's management team is considered experienced (2.4 years average tenure).
Board Age and Tenure
6.1yrs
Average Tenure
70yo
Average Age
Experienced Board: 500124's board of directors are considered experienced (6.1 years average tenure).
Insider Trading
Insider Buying: 500124 insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Shares | 1,000 |
| Max Price | ₹2,799.09 |
| Entity | Individual |
| Shares | 250 |
| Max Price | ₹2,752.00 |
| Entity | Individual |
| Shares | 400 |
| Max Price | ₹2,803.49 |
| Entity | Individual |
| Role | Member of Management Board CEO & Head of Branded Markets - India & Emerging Countries and Member of Management Council |
| Shares | 2,500 |
| Max Price | ₹2,763.04 |
| Entity | Individual |
| Shares | 500 |
| Max Price | ₹2,780.00 |
| Entity | Individual |
| Shares | 510 |
| Max Price | ₹2,770.00 |
| Entity | Individual |
| Shares | 2,000 |
| Max Price | ₹2,809.00 |
| Entity | Individual |
| Shares | 650 |
| Max Price | ₹2,618.46 |
| Entity | Individual |
| Shares | 442 |
| Max Price | ₹2,657.56 |
| Entity | Individual |
| Shares | 400 |
| Max Price | ₹2,721.96 |
| Entity | Individual |
| Shares | 900 |
| Max Price | ₹2,533.89 |
| Entity | Individual |
| Shares | 600 |
| Max Price | ₹2,575.00 |
| Entity | Individual |
| Shares | 1,000 |
| Max Price | ₹2,560.00 |
| Entity | Company |
| Shares | 179,124 |
| Max Price | ₹2,669.04 |
| Entity | Individual |
| Shares | 500 |
| Max Price | ₹2,738.05 |
| Entity | Individual |
| Shares | 550 |
| Max Price | ₹2,628.51 |
| Entity | Individual |
| Shares | 500 |
| Max Price | ₹2,629.24 |
| Entity | Individual |
| Shares | 738 |
| Max Price | ₹2,665.95 |
| Entity | Company |
| Shares | 15,903 |
| Max Price | ₹2,419.89 |
| Entity | Individual |
| Shares | 563 |
| Max Price | ₹2,834.86 |
| Entity | Individual |
| Shares | 1,324 |
| Max Price | ₹2,572.10 |
| Entity | Individual |
| Shares | 469 |
| Max Price | ₹2,608.00 |
| Entity | Individual |
| Shares | 1,000 |
| Max Price | ₹2,674.05 |
| Entity | Individual |
| Shares | 367 |
| Max Price | ₹2,607.63 |
| Entity | Individual |
| Shares | 500 |
| Max Price | ₹2,705.00 |
| Entity | Individual |
| Shares | 500 |
| Max Price | ₹2,602.59 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Gunupati Prasad (59yo)
Co-Chairman
- Tenure: 6.7yrs
- Compensation: ₹123.87m
Saumen Chakraborty (58yo)
President
- Tenure: 6.8yrs
- Compensation: ₹66.06m
Kallam Reddy (52yo)
Chairman of the Board & Member of the Management Council
- Tenure: 5.5yrs
- Compensation: ₹85.59m
Ganadhish Kamat (56yo)
Executive VP
- Tenure: 3.6yrs
M. Ramana (50yo)
CEO & Head of Branded Markets - India & Emerging Countries and Member of Management Council
- Tenure: 0yrs
Erez Israeli (51yo)
CEO & Member of the Management Council
- Tenure: 0.3yrs
Anil Namboodiripad (52yo)
Senior VP
- Tenure: 3.3yrs
Archana Bhaskar (52yo)
Executive VP
- Tenure: 2.4yrs
Sauri Gudlavalleti (40yo)
Senior VP
- Tenure: 1.6yrs
Yugandhar Puvvala (47yo)
Senior VP
- Tenure: 1.6yrs
- Compensation: ₹9.41m
Board Members
Bruce L. Carter (76yo)
Independent Director
- Tenure: 11.3yrs
- Compensation: ₹10.20m
Kalpana Morparia (70yo)
Independent Director
- Tenure: 12.4yrs
- Compensation: ₹9.68m
Gunupati Prasad (59yo)
Co-Chairman
- Tenure: 6.7yrs
- Compensation: ₹123.87m
Kallam Reddy (52yo)
Chairman of the Board & Member of the Management Council
- Tenure: 5.5yrs
- Compensation: ₹85.59m
R. Rajgopalan (69yo)
Member of the Scientific Advisory Board
- Tenure: 0yrs
- Compensation: ₹8.36m
Prasad Menon (73yo)
Lead Independent Director
- Tenure: 0.3yrs
- Compensation: ₹9.34m
Bharat Doshi (70yo)
Independent Director
- Tenure: 3.5yrs
- Compensation: ₹11.07m
Sridar Iyengar (72yo)
Independent Director
- Tenure: 8.3yrs
- Compensation: ₹10.44m
K. Reddy
Member of the Scientific Advisory Board
- Tenure: 0yrs
Leo Puri (58yo)
Independent & Non Whole-time Director
- Tenure: 1.1yrs
- Compensation: ₹4.84m
Company Information
Dr. Reddy's Laboratories Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Dr. Reddy's Laboratories Limited
- Ticker: 500124
- Exchange: BSE
- Founded: 1984
- Industry: Pharmaceuticals
- Sector: Pharmaceuticals & Biotech
- Market Cap: ₹466.440b
- Shares outstanding: 165.69m
- Website: https://www.drreddys.com
Number of Employees
Location
- Dr. Reddy's Laboratories Limited
- 8-2-337, Road No. 3
- Banjara Hills
- Hyderabad
- Andhra Pradesh
- 500034
- India
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 500124 | BSE (Mumbai Stock Exchange) | Yes | Equity Shares | IN | INR | Nov 1998 |
| DRREDDY | NSEI (National Stock Exchange of India) | Yes | Equity Shares | IN | INR | Nov 1998 |
| RDY | NYSE (New York Stock Exchange) | ADS EACH REPR 1 ORD INR5 | US | USD | Apr 2001 | |
| RDDA | DB (Deutsche Boerse AG) | ADS EACH REPR 1 ORD INR5 | DE | EUR | Apr 2001 |
Biography
Dr. Reddy's Laboratories Limited operates as an integrated pharmaceutical company worldwide. It operates through three segments: Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/11/12 12:43 |
| End of Day Share Price | 2019/11/11 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2019/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.