Dr. Reddy's Laboratories
Dr. Reddy's Laboratories Limited operates as an integrated pharmaceutical company worldwide. The last earnings update was 7 days ago. More info.
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500124 Share Price and Events
7 Day Returns
1 Year Returns
500124 Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Dr. Reddy's Laboratories (500124) | -3.1% | -6.7% | 1% | 35.1% | -14.4% | 8.8% |
| IN Pharmaceuticals | -1.2% | -9.2% | -3.8% | -2.2% | -16.6% | 28.3% |
| IN Market | 3.3% | -1.2% | 5.9% | -0.5% | 34.4% | 45.6% |
1 Year Return vs Industry and Market
- 500124 outperformed the Pharmaceuticals industry which returned -2.2% over the past year.
- 500124 outperformed the Market in India which returned -0.5% over the past year.
Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Dr. Reddy's Laboratories
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Dr. Reddy's Laboratories.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 32 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 14.6% |
| Perpetual Growth Rate | 10-Year IN Government Bond Rate | 7.6% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year IN Govt Bond Rate | 7.6% |
| Equity Risk Premium | S&P Global | 8.6% |
| Pharmaceuticals Unlevered Beta | Simply Wall St/ S&P Global | 0.69 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.693 (1 + (1- 35%) (8.77%)) |
0.821 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.82 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (0.821 * 8.6%) |
14.61% |
Discounted Cash Flow Calculation for BSE:500124 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Dr. Reddy's Laboratories is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (INR, Millions) | Source |
Present Value Discounted (@ 14.61%) |
|
|---|---|---|---|
| 2019 | 16,651.69 | Analyst x13 | 14,528.89 |
| 2020 | 18,458.43 | Analyst x14 | 14,052.16 |
| 2021 | 20,519.50 | Analyst x14 | 13,629.79 |
| 2022 | 22,305.00 | Analyst x1 | 12,927.03 |
| 2023 | 24,113.03 | Est @ 8.11% | 12,193.33 |
| 2024 | 26,027.41 | Est @ 7.94% | 11,483.54 |
| 2025 | 28,063.38 | Est @ 7.82% | 10,803.36 |
| 2026 | 30,235.68 | Est @ 7.74% | 10,155.77 |
| 2027 | 32,558.83 | Est @ 7.68% | 9,541.92 |
| 2028 | 35,047.45 | Est @ 7.64% | 8,961.85 |
| Present value of next 10 years cash flows | ₹118,277.64 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= ₹35,047.45 × (1 + 7.55%) ÷ (14.61% – 7.55%) |
₹533,835.58 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= ₹533,835.58 ÷ (1 + 14.61%)10 |
₹136,505.06 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= ₹118,277.64 + ₹136,505.06 |
₹254,782.70 |
| Equity Value per Share (INR) |
= Total value / Shares Outstanding
= ₹254,782.70 / 166.01 |
₹1534.72 |
| Calculation | Result | |
|---|---|---|
| Value per share (INR) | From above. | ₹1,534.72 |
| Current discount | Discount to share price of
₹2,664.20
= -1 x (₹2,664.20 - ₹1,534.72) / ₹1,534.72 |
-73.6% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Dr. Reddy's Laboratories is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Dr. Reddy's Laboratories's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Dr. Reddy's Laboratories's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-31) in INR | ₹113.28 |
| BSE:500124 Share Price ** | BSE (2019-05-24) in INR | ₹2664.2 |
| India Pharmaceuticals Industry PE Ratio | Median Figure of 115 Publicly-Listed Pharmaceuticals Companies | 17.86x |
| India Market PE Ratio | Median Figure of 2,774 Publicly-Listed Companies | 15.46x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Dr. Reddy's Laboratories.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = BSE:500124 Share Price ÷ EPS (both in INR) = 2664.2 ÷ 113.28 |
23.52x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dr. Reddy's Laboratories is overvalued based on earnings compared to the IN Pharmaceuticals industry average.
- Dr. Reddy's Laboratories is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does
Dr. Reddy's Laboratories's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 23.52x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 32 Analysts |
13.8%per year |
| India Pharmaceuticals Industry PEG Ratio | Median Figure of 35 Publicly-Listed Pharmaceuticals Companies | 1.44x |
| India Market PEG Ratio | Median Figure of 557 Publicly-Listed Companies | 1.3x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 23.52x ÷ 13.8% |
1.71x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dr. Reddy's Laboratories is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Dr. Reddy's Laboratories's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-31) in INR | ₹845.57 |
| BSE:500124 Share Price * | BSE (2019-05-24) in INR | ₹2664.2 |
| India Pharmaceuticals Industry PB Ratio | Median Figure of 135 Publicly-Listed Pharmaceuticals Companies | 1.67x |
| India Market PB Ratio | Median Figure of 3,642 Publicly-Listed Companies | 1.05x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = BSE:500124 Share Price ÷ Book Value per Share (both in INR) = 2664.2 ÷ 845.57 |
3.15x |
* Primary Listing of Dr. Reddy's Laboratories.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dr. Reddy's Laboratories is overvalued based on assets compared to the IN Pharmaceuticals industry average.
Value checks
We assess Dr. Reddy's Laboratories's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Pharmaceuticals industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Pharmaceuticals industry average (and greater than 0)? (1 check) Dr. Reddy's Laboratories has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Dr. Reddy's Laboratories's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
- Dr. Reddy's Laboratories's earnings growth is positive but not above the India market average.
- Dr. Reddy's Laboratories's revenue growth is expected to exceed the India market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| BSE:500124 Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 32 Analysts | 13.8% |
| BSE:500124 Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 32 Analysts | 10.5% |
| India Pharmaceuticals Industry Earnings Growth Rate | Market Cap Weighted Average | 21.3% |
| India Pharmaceuticals Industry Revenue Growth Rate | Market Cap Weighted Average | 12.5% |
| India Market Earnings Growth Rate | Market Cap Weighted Average | 16.9% |
| India Market Revenue Growth Rate | Market Cap Weighted Average | 10.1% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 32 Analyst Estimates (S&P Global) | See Below |
| Date (Data in INR Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2022-03-31 | 209,969 | 42,805 | 29,181 | 4 |
| 2021-03-31 | 192,788 | 31,135 | 25,167 | 30 |
| 2020-03-31 | 172,926 | 26,831 | 21,572 | 31 |
| Date (Data in INR Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-03-31 | 153,851 | 18,795 | |
| 2018-12-31 | 149,034 | 27,774 | 17,473 |
| 2018-09-30 | 148,594 | 19,007 | 15,965 |
| 2018-06-30 | 146,076 | 14,986 | 13,776 |
| 2018-03-31 | 141,855 | 18,029 | 9,806 |
| 2017-12-31 | 141,827 | 20,765 | 9,909 |
| 2017-09-30 | 140,588 | 18,478 | 11,266 |
| 2017-06-30 | 140,907 | 14,480 | 11,367 |
| 2017-03-31 | 139,870 | 21,513 | 12,039 |
| 2016-12-31 | 141,269 | 22,252 | 9,660 |
| 2016-09-30 | 144,127 | 29,018 | 10,751 |
| 2016-06-30 | 148,410 | 37,693 | 15,019 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 32 Analyst Estimates (S&P Global) | See Below |
All data from Dr. Reddy's Laboratories Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in INR Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2022-03-31 | 173.64 | 193.96 | 157.41 | 3.00 |
| 2021-03-31 | 151.72 | 179.00 | 121.50 | 26.00 |
| 2020-03-31 | 129.49 | 149.40 | 116.20 | 28.00 |
| Date (Data in INR Millions) | EPS * |
|---|---|
| 2019-03-31 | 113.28 |
| 2018-12-31 | 105.30 |
| 2018-09-30 | 96.21 |
| 2018-06-30 | 83.01 |
| 2018-03-31 | 59.13 |
| 2017-12-31 | 59.76 |
| 2017-09-30 | 67.97 |
| 2017-06-30 | 68.59 |
| 2017-03-31 | 72.24 |
| 2016-12-31 | 57.54 |
| 2016-09-30 | 63.58 |
| 2016-06-30 | 88.19 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- Dr. Reddy's Laboratories is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
Future performance checks
We assess Dr. Reddy's Laboratories's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Dr. Reddy's Laboratories has a total score of 2/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Dr. Reddy's Laboratories performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Dr. Reddy's Laboratories's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
- Dr. Reddy's Laboratories's 1-year earnings growth exceeds its 5-year average (91.7% vs -13.4%)
- Dr. Reddy's Laboratories's earnings growth has exceeded the IN Pharmaceuticals industry average in the past year (91.7% vs 22.1%).
Earnings and Revenue History
All data from Dr. Reddy's Laboratories Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in INR Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-03-31 | 153,851.00 | 18,795.00 | 48,890.00 | 15,607.00 |
| 2018-12-31 | 149,034.00 | 17,473.00 | 48,112.00 | 16,293.00 |
| 2018-09-30 | 148,594.00 | 15,965.00 | 48,124.00 | 17,292.00 |
| 2018-06-30 | 146,076.00 | 13,776.00 | 46,784.00 | 17,347.00 |
| 2018-03-31 | 141,855.00 | 9,806.00 | 46,441.00 | 18,265.00 |
| 2017-12-31 | 141,827.00 | 9,909.00 | 45,370.00 | 18,458.00 |
| 2017-09-30 | 140,588.00 | 11,266.00 | 44,663.00 | 18,747.00 |
| 2017-06-30 | 140,907.00 | 11,367.00 | 45,405.00 | 19,786.00 |
| 2017-03-31 | 139,870.00 | 12,039.00 | 45,926.00 | 19,513.00 |
| 2016-12-31 | 141,269.00 | 9,660.00 | 46,961.00 | 19,718.00 |
| 2016-09-30 | 144,127.00 | 10,751.00 | 47,659.00 | 18,857.00 |
| 2016-06-30 | 148,410.00 | 15,019.00 | 46,943.00 | 18,116.00 |
| 2016-03-31 | 153,866.00 | 20,013.00 | 45,641.00 | 17,701.00 |
| 2015-12-31 | 155,850.00 | 24,456.00 | 44,152.00 | 18,100.00 |
| 2015-09-30 | 154,602.00 | 24,409.00 | 43,264.00 | 18,321.00 |
| 2015-06-30 | 150,592.00 | 22,932.00 | 42,879.00 | 17,961.00 |
| 2015-03-31 | 147,360.00 | 22,179.00 | 42,076.00 | 17,329.00 |
| 2014-12-31 | 143,474.00 | 21,806.00 | 42,810.00 | 16,289.00 |
| 2014-09-30 | 140,380.00 | 22,247.00 | 42,102.00 | 14,952.00 |
| 2014-06-30 | 138,076.00 | 23,409.00 | 41,165.00 | 13,847.00 |
| 2014-03-31 | 132,170.00 | 21,515.00 | 38,783.00 | 12,402.00 |
| 2013-12-31 | 130,043.00 | 22,409.00 | 37,695.00 | 10,852.00 |
| 2013-09-30 | 123,357.00 | 20,005.00 | 35,823.00 | 9,898.00 |
| 2013-06-30 | 118,591.00 | 17,027.00 | 34,101.00 | 8,648.00 |
| 2013-03-31 | 115,548.00 | 16,777.00 | 33,584.00 | 7,782.00 |
| 2012-12-31 | 109,045.00 | 14,494.00 | 32,078.00 | 7,088.00 |
| 2012-09-30 | 108,086.00 | 15,842.00 | 31,186.00 | 6,577.00 |
| 2012-06-30 | 101,955.00 | 14,995.00 | 30,389.00 | 6,278.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Dr. Reddy's Laboratories has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Dr. Reddy's Laboratories used its assets more efficiently than the IN Pharmaceuticals industry average last year based on Return on Assets.
- Dr. Reddy's Laboratories's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Dr. Reddy's Laboratories's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Pharmaceuticals industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Dr. Reddy's Laboratories has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Dr. Reddy's Laboratories's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Dr. Reddy's Laboratories's finances.
The net worth of a company is the difference between its assets and liabilities.
- Dr. Reddy's Laboratories is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Dr. Reddy's Laboratories's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is covered by short term assets, assets are 3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Dr. Reddy's Laboratories Company Filings, last reported 1 month ago.
| Date (Data in INR Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-03-31 | 140,197.00 | 38,381.00 | 24,757.00 |
| 2018-12-31 | 135,708.00 | 43,836.00 | 24,774.00 |
| 2018-09-30 | 131,446.00 | 55,522.00 | 19,385.00 |
| 2018-06-30 | 130,430.00 | 54,273.00 | 15,605.00 |
| 2018-03-31 | 126,460.00 | 50,714.00 | 20,968.00 |
| 2017-12-31 | 123,685.00 | 54,911.00 | 21,958.00 |
| 2017-09-30 | 121,840.00 | 53,667.00 | 16,793.00 |
| 2017-06-30 | 123,423.00 | 50,462.00 | 14,573.00 |
| 2017-03-31 | 124,044.00 | 49,185.00 | 18,136.00 |
| 2016-12-31 | 121,040.00 | 57,999.00 | 20,145.00 |
| 2016-09-30 | 115,264.00 | 60,480.00 | 21,379.00 |
| 2016-06-30 | 114,112.00 | 37,632.00 | 25,578.00 |
| 2016-03-31 | 128,336.00 | 33,513.00 | 39,955.00 |
| 2015-12-31 | 128,681.00 | 33,800.00 | 38,028.00 |
| 2015-09-30 | 121,499.00 | 37,073.00 | 34,050.00 |
| 2015-06-30 | 118,885.00 | 41,400.00 | 35,117.00 |
| 2015-03-31 | 111,302.00 | 43,126.00 | 39,653.00 |
| 2014-12-31 | 105,107.00 | 39,656.00 | 28,736.00 |
| 2014-09-30 | 99,004.00 | 38,854.00 | 28,737.00 |
| 2014-06-30 | 96,730.00 | 41,818.00 | 32,950.00 |
| 2014-03-31 | 90,801.00 | 44,742.00 | 33,534.00 |
| 2013-12-31 | 85,168.00 | 49,348.00 | 30,402.00 |
| 2013-09-30 | 78,086.00 | 49,224.00 | 26,402.00 |
| 2013-06-30 | 75,051.00 | 43,995.00 | 29,106.00 |
| 2013-03-31 | 72,805.00 | 36,760.00 | 22,099.00 |
| 2012-12-31 | 66,789.00 | 36,825.00 | 23,264.00 |
| 2012-09-30 | 63,205.00 | 34,901.00 | 20,641.00 |
| 2012-06-30 | 59,664.00 | 35,430.00 | 21,353.00 |
- Dr. Reddy's Laboratories's level of debt (27.4%) compared to net worth is satisfactory (less than 40%).
- The level of debt compared to net worth has been reduced over the past 5 years (49.2% vs 27.4% today).
- Debt is well covered by operating cash flow (72.4%, greater than 20% of total debt).
- Dr. Reddy's Laboratories earns more interest than it pays, coverage of interest payments is not a concern.
Financial health checks
We assess Dr. Reddy's Laboratories's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Dr. Reddy's Laboratories has a total score of 6/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Dr. Reddy's Laboratories's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
₹2,000 of
Dr. Reddy's Laboratories
shares you are expected to receive
₹15
in your first year as a dividend.
Dividend Amount
- Dr. Reddy's Laboratories's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.54%).
- Dr. Reddy's Laboratories's dividend is below the markets top 25% of dividend payers in India (2.01%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 32 Analyst Estimates (S&P Global) | See Below |
| India Pharmaceuticals Industry Average Dividend Yield | Market Cap Weighted Average of 71 Stocks | 0.8% |
| India Market Average Dividend Yield | Market Cap Weighted Average of 1408 Stocks | 1.4% |
| India Minimum Threshold Dividend Yield | 10th Percentile | 0.3% |
| India Bottom 25% Dividend Yield | 25th Percentile | 0.5% |
| India Top 25% Dividend Yield | 75th Percentile | 2% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in ₹) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2022-03-31 | 25.12 | 4.00 |
| 2021-03-31 | 28.33 | 25.00 |
| 2020-03-31 | 23.91 | 22.00 |
| Date (Data in ₹) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-05-17 | 20.000 | 0.752 |
| 2018-05-22 | 20.000 | 0.805 |
| 2017-06-19 | 20.000 | 0.879 |
| 2017-05-12 | 20.000 | 0.773 |
| 2016-05-12 | 20.000 | 0.662 |
| 2015-05-12 | 20.000 | 0.585 |
| 2014-05-13 | 18.000 | 0.595 |
| 2013-05-14 | 15.000 | 0.622 |
| 2012-07-18 | 13.750 | 0.769 |
| 2012-06-25 | 13.750 | 0.837 |
| 2012-05-11 | 13.750 | 0.843 |
| 2011-07-21 | 11.250 | 0.704 |
| 2010-09-22 | 11.250 | 0.697 |
| 2010-05-06 | 11.250 | 0.815 |
| 2009-07-06 | 6.250 | 0.618 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
Dr. Reddy's Laboratories's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are well covered by earnings (5.7x coverage).
- Dividends after 3 years are expected to be thoroughly covered by earnings (6.8x coverage).
Income/ dividend checks
We assess Dr. Reddy's Laboratories's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Dr. Reddy's Laboratories afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Dr. Reddy's Laboratories has a total score of 5/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | ₹77,480,000 |
| AGE | 58 |
| TENURE AS CEO | 18.3 years |
CEO Bio
Mr. Gunupati Venkateswara Prasad, B.Sc. (Chem. Eng.), M.S. (Indl. Admn.), has been the Chief Executive Officer of Dr. Reddy's Laboratories Ltd. since 2001 and has been its Co-Chairman since March 30, 2013 and serves as its Managing Director. Mr. Prasad serves as the Chairman of the Board of Aurigene Discovery Technologies Limited and served as its Chief Executive Officer. Dr. Prasad serves as a Member of Executive Board and Member of Governing Board of Indian School of Business. Dr. Prasad has championed globalization and has played a vital role in evolution of Dr. Reddy's Laboratories and is the architect of its global generics strategy. He has helped create new platforms of growth for Dr. Reddy's Laboratories Ltd, in the Custom Pharmaceutical Services, Discovery Services and Specialty Pharmaceutical segments and he focuses on driving its growth in two of the world's biggest markets - US and Europe. From 1990 to 2001, he served as Managing Director at Cheminor Drugs Ltd. He served as Executive Vice-Chairman of Dr. Reddy's Laboratories Ltd., since 2001 and its Member of the Management Council. He serves as a Director of Diana Hotels Limited, Institute of Life Sciences, Nipuna Services Ltd., Vijaya Productions Ltd., Dr. Reddy’s Holdings Limited, Stamlo Industries Limited, Ruthenika Technologies Limited, Dr. Reddy’s Research Foundation, International Foundation for Research and Education, Molecular Connections Private Limited, Dr. Reddy’s Trust Services Private Limited, Diana Projects and Engineers Ltd, Andhra Pradesh State Skill Development Corporation and Green Park Hotels and Resorts Ltd. Dr. Prasad has been Chairman of Supervisory Board and Member of Supervisory Board of OctoPlus N.V. since January 2013. He has been a Whole Time Director of Dr. Reddy's Laboratories Ltd. since April 8, 1986. He serves as a Director of Aurigene Discovery Technologies Limited. Prior to that, he was founding Director of Benzex Labs, which manufactured Active Pharmaceutical Ingredients. Dr. Prasad served as a Director at NBTY Acquisition, LLC from June 2003 to March 27, 2006. Dr. Prasad served as a Director of Leiner Health Products Inc. from June 2003 to March 27, 2006. He served as Non-Executive Independent Director of Infotech Enterprises Ltd. (alternatively Cyient Limited) since April 19, 2006. He served as Independent Director of Ocimum Biosolutions, Ltd. Mr. Prasad was recognized as “India’s Best CEO” in the Large Company category by Business Today in 2014, and as “India Business Leader of the Year” by CNBC Asia in 2015. He was listed in the prestigious ‘Medicine Maker 2018 Power List’ of most inspirational professionals shaping the future of drug development, and one of ‘India’s Greatest 50 CEOs Ever’ by Outlook. Dr. Prasad has a Bachelor of Science degree in Chemical Engineering from Illinois Institute of Technology, Chicago, USA in 1982 and an M.S. in Industrial Administration from Purdue University, USA., in 1983.
CEO Compensation
- Gunupati's compensation has been consistent with company performance over the past year, both up more than 20%.
- Gunupati's remuneration is about average for companies of similar size in India.
Management Team Tenure
Average tenure and age of the Dr. Reddy's Laboratories management team in years:
- The tenure for the Dr. Reddy's Laboratories management team is about average.
Management Team
Gunupati Prasad
Co-Chairman
₹77M
58
18.3 yrs
Kallam Reddy
Chairman of the Board & Member of the Management Council
₹57M
51
Saumen Chakraborty
President
₹92M
57
M. Ramana
CEO & Head of Branded Markets - India & Emerging Countries and Member of Management Council
₹41M
49
Ganadhish Kamat
Executive VP
₹31M
55
3.1 yrs
Anil Namboodiripad
Senior VP
₹33M
51
2.8 yrs
Archana Bhaskar
Executive VP
₹27M
50
1.9 yrs
Sanjay Sharma
Executive VP
₹20M
49
1.8 yrs
Sandeep Poddar
Company Secretary & Chief Compliance Officer
₹9M
Erez Israeli
COO, Global Head of Generics & PSAI Business and Member of the Management Council
50
1.1 yrs
Board of Directors Tenure
Average tenure and age of the Dr. Reddy's Laboratories board of directors in years:
- The tenure for the Dr. Reddy's Laboratories board of directors is about average.
Board of Directors
Kallam Reddy
Chairman of the Board & Member of the Management Council
₹57M
51
5 yrs
Omkar Goswami
Independent Director
₹7M
62
18.6 yrs
Gunupati Prasad
Co-Chairman
₹77M
58
6.2 yrs
Tino Puri
Lead Independent Director
₹9M
73
Bruce L. Carter
Independent Director
₹8M
75
10.8 yrs
Sridar Iyengar
Independent Director
₹8M
71
7.8 yrs
Bharat Doshi
Independent Director
₹9M
69
3 yrs
R. Rajgopalan
Member of the Scientific Advisory Board
₹8M
68
K. Reddy
Member of the Scientific Advisory Board
Kalpana Morparia
Independent Director
₹7M
69
11.9 yrs
Who owns this company?
Recent Insider Trading
- Dr. Reddy's Laboratories insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (₹) | Value (₹) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 22. May 19 | Buy | Dr. Reddy's Laboratories Limited., Employees Stock Ownership Plan | Company | 20. May 19 | 22. May 19 | 179,124 | ₹2,669.04 | ₹473,365,474 | ||
| 20. Mar 19 | Sell | Nirav Shah | Individual | 06. Mar 19 | 20. Mar 19 | -500 | ₹2,738.05 | ₹-1,345,207 | ||
| 15. Mar 19 | Sell | Pankaj Phatak | Individual | 05. Mar 19 | 05. Mar 19 | -550 | ₹2,628.51 | ₹-1,445,683 | ||
| 15. Mar 19 | Sell | Sundeep Bhatia | Individual | 05. Mar 19 | 05. Mar 19 | -500 | ₹2,629.24 | ₹-1,314,620 | ||
| 15. Mar 19 | Sell | V. Dikshit | Individual | 08. Mar 19 | 08. Mar 19 | -738 | ₹2,665.95 | ₹-1,967,468 | ||
| 18. Feb 19 | Buy | Dr. Reddy's Laboratories Limited., Employees Stock Ownership Plan | Company | 15. Feb 19 | 15. Feb 19 | 15,903 | ₹2,419.89 | ₹38,483,582 | ||
| 14. Feb 19 | Sell | B. Chakravarthy | Individual | 04. Feb 19 | 07. Feb 19 | -563 | ₹2,834.86 | ₹-1,596,026 | ||
| 04. Jan 19 | Sell | Bijaygopal Chakrabarti | Individual | 04. Jan 19 | 04. Jan 19 | -1,324 | ₹2,572.10 | ₹-3,405,457 | ||
| 03. Jan 19 | Sell | K Raju | Individual | 20. Dec 18 | 26. Dec 18 | -469 | ₹2,608.00 | ₹-1,223,152 | ||
| 10. Dec 18 | Sell | J. Babu | Individual | 04. Dec 18 | 04. Dec 18 | -1,000 | ₹2,674.05 | ₹-2,674,047 | ||
| 04. Dec 18 | Sell | Ashish Nigam | Individual | 04. Dec 18 | 04. Dec 18 | -500 | ₹2,705.00 | ₹-1,352,500 | ||
| 04. Dec 18 | Sell | G. Shankarnarayan | Individual | 30. Nov 18 | 30. Nov 18 | -367 | ₹2,607.63 | ₹-957,000 | ||
| 27. Nov 18 | Sell | Gopinath Balu | Individual | 21. Nov 18 | 21. Nov 18 | -500 | ₹2,602.59 | ₹-1,301,295 | ||
| 14. Nov 18 | Buy | Dama Rao | Individual | 29. Oct 18 | 30. Oct 18 | 600 | ₹2,579.95 | ₹1,547,971 | ||
| 12. Nov 18 | Buy | Dr. Reddy's Laboratories Limited., Employees Stock Ownership Plan | Company | 09. Nov 18 | 09. Nov 18 | 1,373 | ₹2,389.00 | ₹3,280,097 | ||
| 06. Nov 18 | Buy | Dr. Reddy's Laboratories Limited., Employees Stock Ownership Plan | Company | 02. Nov 18 | 02. Nov 18 | 10,000 | ₹2,417.50 | ₹24,175,000 | ||
| 05. Oct 18 | Buy | Dr. Reddy's Laboratories Limited., Employees Stock Ownership Plan | Company | 04. Oct 18 | 04. Oct 18 | 127,741 | ₹2,431.12 | ₹310,553,601 | ||
| 03. Oct 18 | Buy | Dr. Reddy's Laboratories Limited., Employees Stock Ownership Plan | Company | 01. Oct 18 | 03. Oct 18 | 37,959 | ₹2,487.65 | ₹94,216,448 | ||
| 28. Sep 18 | Buy | Dr. Reddy's Laboratories Limited., Employees Stock Ownership Plan | Company | 27. Sep 18 | 27. Sep 18 | 25,000 | ₹2,540.00 | ₹63,499,997 | ||
| 01. Oct 18 | Sell | Kolli Reddy | Individual | 27. Sep 18 | 28. Sep 18 | -600 | ₹2,533.87 | ₹-1,520,319 | ||
| 20. Sep 18 | Sell | Suresh Kankanwadi | Individual | 14. Sep 18 | 18. Sep 18 | -1,600 | ₹2,585.34 | ₹-4,136,536 | ||
| 21. Aug 18 | Sell | Abhijit Mukherjee | Individual | 20. Aug 18 | 21. Aug 18 | -3,000 | ₹2,394.00 | ₹-7,182,000 | ||
| 14. Aug 18 | Sell | Abhijit Mukherjee | Individual | 03. Aug 18 | 14. Aug 18 | -2,583 | ₹2,243.52 | ₹-5,795,000 | ||
| 21. Jun 18 | Sell | P Krishna | Individual | 19. Jun 18 | 19. Jun 18 | -1,100 | ₹2,416.22 | ₹-2,657,842 | ||
| 01. Jun 18 | Buy | Gunupati Prasad | Individual | 31. May 18 | 31. May 18 | 2,500 | ₹1,947.60 | ₹4,869,000 | ||
| 29. May 18 | Buy | Gunupati Prasad | Individual | 28. May 18 | 28. May 18 | 1,137 | ₹1,968.34 | ₹2,238,000 | ||
| 28. May 18 | Buy | Gunupati Prasad | Individual | 25. May 18 | 25. May 18 | 56,063 | ₹1,984.75 | ₹111,271,002 | ||
Management checks
We assess Dr. Reddy's Laboratories's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Dr. Reddy's Laboratories has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Should You Be Tempted To Sell Dr Reddy's Laboratories Limited (BOM:500124) At Its Current PE Ratio?
and want to better understand how you can grow your money by investing in Dr Reddy's Laboratories Limited (BOM:500124). … Dr Reddy's Laboratories Limited (BOM:500124) trades with a trailing P/E of 35.2x, which is higher than the industry average of 25x. … Reddy's Laboratories
Simply Wall St - – Full articleCompany Info
Description
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 Proprietary Products. The Global Generics segment manufactures and markets prescription and over-the-counter finished pharmaceutical products that are marketed under a brand name or as a generic finished dosage with therapeutic equivalence to branded formulations. This segment also engages in the biologics business. The PSAI segment manufactures and markets active pharmaceutical ingredients and intermediates, which are principal ingredients for finished pharmaceutical products. It also provides contract research services; and manufactures and sells active pharmaceutical ingredients and steroids in accordance with the specific customer requirements. The Proprietary Products segment focuses on the research, development, and manufacture of differentiated formulations for dermatology and neurology therapeutic areas. It also provides a portfolio of in-licensed dermatology products. As of March 31, 2018, this segment had 13 active products development programs pipeline that are in various stages of development. The company’s therapeutic categories primarily include gastro-intestinal, cardiovascular, anti-diabetic, pain management, oncology, dermatology, urology, and nephrology. It has collaboration, license, and option agreement with Curis, Inc. to discover, develop, and commercialize small molecule antagonists for immuno-oncology and precision oncology; and collaboration agreement with Merck Serono to co-develop a portfolio of biosimilar compounds in oncology, primarily focused on monoclonal antibodies. Dr. Reddy's Laboratories Limited was founded in 1984 and is headquartered in Hyderabad, India.
Details
| Name: | Dr. Reddy's Laboratories Limited |
| 500124 | |
| Exchange: | BSE |
| Founded: | 1984 |
| ₹437,840,209,681 | |
| 166,012,061 | |
| Website: | http://www.drreddys.com |
| Address: |
Dr. Reddy's Laboratories Limited 8-2-337, Road No. 3, Banjara Hills, Hyderabad, Andhra Pradesh, 500034, India |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| BSE | 500124 | Equity Shares | Mumbai Stock Exchange | IN | INR | 10. Nov 1998 | |
| NSEI | DRREDDY | Equity Shares | National Stock Exchange of India | IN | INR | 10. Nov 1998 | |
| NYSE | RDY | ADR | New York Stock Exchange | US | USD | 11. Apr 2001 | |
| DB | RDDA | ADR | Deutsche Boerse AG | DE | EUR | 11. Apr 2001 |
Number of employees
Current staff
Industry
| Pharmaceuticals | |
| Pharmaceuticals & Biotech |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/05/24 12:42 |
| End of day share price update: | 2019/05/24 00:00 |
| Last estimates confirmation: | 2019/05/22 |
| Last earnings filing: | 2019/05/17 |
| Last earnings reported: | 2019/03/31 |
| Last annual earnings reported: | 2019/03/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
