Dr. Reddy's Laboratories
Market Cap
₹905.0b
Last Updated
2021/06/15 12:23 UTC
Data Sources
Company Financials +
Executive Summary
Dr. Reddy's Laboratories Limited operates as an integrated pharmaceutical company worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
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 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: 500124's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
2.6%
500124
2.3%
IN Pharmaceuticals
0.8%
IN Market
1 Year Return
35.0%
500124
45.9%
IN Pharmaceuticals
69.0%
IN Market
Return vs Industry: 500124 underperformed the Indian Pharmaceuticals industry which returned 46.9% over the past year.
Return vs Market: 500124 underperformed the Indian Market which returned 67.8% over the past year.
Shareholder returns
| 500124 | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.6% | 2.3% | 0.8% |
| 30 Day | 4.1% | 4.4% | 9.5% |
| 90 Day | 24.2% | 19.8% | 11.0% |
| 1 Year | 35.9%35.0% | 47.3%45.9% | 71.6%69.0% |
| 3 Year | 131.2%126.0% | 68.6%64.0% | 41.3%34.4% |
| 5 Year | 83.9%77.4% | 53.5%47.8% | 95.9%81.1% |
Long-Term 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
No news available
Valuation
Is Dr. Reddy's Laboratories undervalued compared to its fair value and its price relative to the market?
46.86x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 500124 (₹5459.55) is trading above our estimate of fair value (₹940.5)
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 (47.3x) compared to the Indian Pharmaceuticals industry average (24.2x).
PE vs Market: 500124 is poor value based on its PE Ratio (47.3x) compared to the Indian market (21.6x).
Price to Earnings Growth Ratio
PEG Ratio: 500124 is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: 500124 is overvalued based on its PB Ratio (5.2x) compared to the IN Pharmaceuticals industry average (3.1x).
Future Growth
How is Dr. Reddy's Laboratories forecast to perform in the next 1 to 3 years based on estimates from 32 analysts?
21.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 500124's forecast earnings growth (21.1% per year) is above the savings rate (6.8%).
Earnings vs Market: 500124's earnings (21.1% per year) are forecast to grow slower than the Indian market (21.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 500124's revenue (9.2% per year) is forecast to grow slower than the Indian market (12.7% per year).
High Growth Revenue: 500124's revenue (9.2% 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 (17.2%).
Past Performance
How has Dr. Reddy's Laboratories performed over the past 5 years?
10.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 500124 has high quality earnings.
Growing Profit Margin: 500124's current net profit margins (10.1%) are lower than last year (11.2%).
Past Earnings Growth Analysis
Earnings Trend: 500124's earnings have grown by 10.9% per year over the past 5 years.
Accelerating Growth: 500124's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 500124 had negative earnings growth (-1.8%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (51.4%).
Return on Equity
High ROE: 500124's Return on Equity (10.9%) is considered low.
Financial Health
How is Dr. Reddy's Laboratories's financial position?
Financial Position Analysis
Short Term Liabilities: 500124's short term assets (₹148.2B) exceed its short term liabilities (₹81.5B).
Long Term Liabilities: 500124's short term assets (₹148.2B) exceed its long term liabilities (₹9.0B).
Debt to Equity History and Analysis
Debt Level: 500124's debt to equity ratio (13.2%) is considered satisfactory.
Reducing Debt: 500124's debt to equity ratio has reduced from 25.5% to 13.2% over the past 5 years.
Debt Coverage: 500124's debt is well covered by operating cash flow (154%).
Interest Coverage: 500124 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Dividend
What is Dr. Reddy's Laboratories's current dividend yield, its reliability and sustainability?
0.46%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: 500124's dividend (0.46%) is higher than the bottom 25% of dividend payers in the Indian market (0.37%).
High Dividend: 500124's dividend (0.46%) is low compared to the top 25% of dividend payers in the Indian market (1.56%).
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 (21.7%), 500124's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 500124's dividends in 3 years are forecast to be thoroughly covered by earnings (11.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.2yrs
Average management tenure
CEO
Erez Israeli (52 yo)
1.83yrs
Tenure
₹195,320,000
Compensation
Mr. Erez Israeli, MBA 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 Memb...
CEO Compensation Analysis
Compensation vs Market: Erez's total compensation ($USD2.67M) is above average for companies of similar size in the Indian market ($USD1.34M).
Compensation vs Earnings: Erez's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: 500124's management team is considered experienced (3.2 years average tenure).
Board Members
Experienced Board: 500124's board of directors are considered experienced (7.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: 500124 insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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: ₹905.026b
- Shares outstanding: 165.77m
- Website: https://www.drreddys.com
Number of Employees
Location
- Dr. Reddy's Laboratories Limited
- 8-2-337, Road No. 3
- Banjara Hills
- Hyderabad
- 500034
- India
Listings
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 | 2021/06/15 12:23 |
| End of Day Share Price | 2021/06/15 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2021/03/31 |
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.