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Dr. Reddy's Laboratories BSE:500124 Stock Report

Last Price

₹4.32k

Market Cap

₹716.5b

7D

4.0%

1Y

-20.1%

Updated

27 Jun, 2022

Data

Company Financials +
500124 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth1/6
Past Performance4/6
Financial Health6/6
Dividends5/6

500124 Stock Overview

Dr. Reddy's Laboratories Limited, together with its subsidiaries, operates as an integrated pharmaceutical company worldwide.

Dr. Reddy's Laboratories Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Dr. Reddy's Laboratories
Historical stock prices
Current Share Price₹4,317.15
52 Week High₹5,613.65
52 Week Low₹3,655.00
Beta0.18
1 Month Change-1.70%
3 Month Change-0.10%
1 Year Change-20.11%
3 Year Change62.60%
5 Year Change61.04%
Change since IPO25,265.12%

Recent News & Updates

Shareholder Returns

500124IN PharmaceuticalsIN Market
7D4.0%2.6%2.3%
1Y-20.1%-15.4%-0.9%

Return vs Industry: 500124 underperformed the Indian Pharmaceuticals industry which returned -15.4% over the past year.

Return vs Market: 500124 underperformed the Indian Market which returned -0.9% over the past year.

Price Volatility

Is 500124's price volatile compared to industry and market?
500124 volatility
500124 Average Weekly Movement4.0%
Pharmaceuticals Industry Average Movement6.8%
Market Average Movement6.9%
10% most volatile stocks in IN Market9.9%
10% least volatile stocks in IN Market4.5%

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.

About the Company

FoundedEmployeesCEOWebsite
198422,739Erez Israelihttps://www.drreddys.com

Dr. Reddy's Laboratories Limited, together with its subsidiaries, operates as an integrated pharmaceutical company worldwide. It operates through Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), Proprietary Products, and Others segments. 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 dosages with therapeutic equivalence to branded formulations.

Dr. Reddy's Laboratories Fundamentals Summary

How do Dr. Reddy's Laboratories's earnings and revenue compare to its market cap?
500124 fundamental statistics
Market Cap₹716.51b
Earnings (TTM)₹23.57b
Revenue (TTM)₹214.39b

30.4x

P/E Ratio

3.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
500124 income statement (TTM)
Revenue₹214.39b
Cost of Revenue₹100.55b
Gross Profit₹113.84b
Other Expenses₹90.27b
Earnings₹23.57b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)142.00
Gross Margin53.10%
Net Profit Margin10.99%
Debt/Equity Ratio17.2%

How did 500124 perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

21%

Payout Ratio

Does 500124 pay a reliable dividends?

See 500124 dividend history and benchmarks
When do you need to buy 500124 by to receive an upcoming dividend?
Dr. Reddy's Laboratories dividend dates
Ex Dividend DateJul 11 2022
Dividend Pay DateAug 28 2022
Days until Ex dividend13 days
Days until Dividend pay date61 days

Does 500124 pay a reliable dividends?

See 500124 dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is 500124 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 500124?

Other financial metrics that can be useful for relative valuation.

500124 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.3x
Enterprise Value/EBITDA14.4x
PEG Ratio1.8x

Price to Earnings Ratio vs Peers

How does 500124's PE Ratio compare to its peers?

500124 PE Ratio vs Peers
The above table shows the PE ratio for 500124 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average40.5x
CIPLA Cipla
29.9x16.9%₹752.3b
500420 Torrent Pharmaceuticals
62.3x26.0%₹484.1b
500488 Abbott India
47.9xn/a₹382.3b
539523 Alkem Laboratories
22x10.6%₹362.6b
500124 Dr. Reddy's Laboratories
30.4x16.6%₹716.5b

Price-To-Earnings vs Peers: 500124 is good value based on its Price-To-Earnings Ratio (30.4x) compared to the peer average (40.5x).


Price to Earnings Ratio vs Industry

How does 500124's PE Ratio compare vs other companies in the IN Pharmaceuticals Industry?

Price-To-Earnings vs Industry: 500124 is expensive based on its Price-To-Earnings Ratio (30.4x) compared to the Indian Pharmaceuticals industry average (20.7x)


Price to Earnings Ratio vs Fair Ratio

What is 500124's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

500124 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio30.4x
Fair PE Ratio29.4x

Price-To-Earnings vs Fair Ratio: 500124 is expensive based on its Price-To-Earnings Ratio (30.4x) compared to the estimated Fair Price-To-Earnings Ratio (29.4x).


Share Price vs Fair Value

What is the Fair Price of 500124 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 500124 (₹4317.15) is trading above our estimate of fair value (₹3117.1)

Significantly Below Fair Value: 500124 is trading above our estimate of fair value.


Price to Earnings Growth Ratio

PEG Ratio: 500124 is poor value based on its PEG Ratio (1.8x)


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Future Growth

How is Dr. Reddy's Laboratories forecast to perform in the next 1 to 3 years based on estimates from 38 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


16.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500124's forecast earnings growth (16.6% per year) is above the savings rate (6.7%).

Earnings vs Market: 500124's earnings (16.6% per year) are forecast to grow slower than the Indian market (17.4% per year).

High Growth Earnings: 500124's earnings are forecast to grow, but not significantly.

Revenue vs Market: 500124's revenue (8.3% per year) is forecast to grow slower than the Indian market (11.5% per year).

High Growth Revenue: 500124's revenue (8.3% 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 (16%).


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Past Performance

How has Dr. Reddy's Laboratories performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


13.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 500124 has a large one-off gain of ₹7.6B impacting its March 31 2022 financial results.

Growing Profit Margin: 500124's current net profit margins (11%) are higher than last year (9.1%).


Past Earnings Growth Analysis

Earnings Trend: 500124's earnings have grown by 13.4% per year over the past 5 years.

Accelerating Growth: 500124's earnings growth over the past year (36.7%) exceeds its 5-year average (13.4% per year).

Earnings vs Industry: 500124 earnings growth over the past year (36.7%) exceeded the Pharmaceuticals industry 9%.


Return on Equity

High ROE: 500124's Return on Equity (12.4%) is considered low.


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Financial Health

How is Dr. Reddy's Laboratories's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 500124's short term assets (₹181.1B) exceed its short term liabilities (₹97.8B).

Long Term Liabilities: 500124's short term assets (₹181.1B) exceed its long term liabilities (₹8.3B).


Debt to Equity History and Analysis

Debt Level: 500124 has more cash than its total debt.

Reducing Debt: 500124's debt to equity ratio has reduced from 39.1% to 17.2% over the past 5 years.

Debt Coverage: 500124's debt is well covered by operating cash flow (85.6%).

Interest Coverage: 500124 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Dr. Reddy's Laboratories's current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.69%

Current Dividend Yield

Upcoming Dividend Payment

TodayJun 27 2022Ex Dividend DateJul 11 2022Dividend Pay DateAug 28 202248 days from Ex DividendBuy in the next 13 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 500124's dividend (0.69%) is higher than the bottom 25% of dividend payers in the Indian market (0.43%).

High Dividend: 500124's dividend (0.69%) is low compared to the top 25% of dividend payers in the Indian market (1.89%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (21.1%), 500124's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (41.5%), 500124's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Erez Israeli (53 yo)

4.17yrs

Tenure

₹119,960,000

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 ($USD1.53M) is above average for companies of similar size in the Indian market ($USD900.69K).

Compensation vs Earnings: Erez's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 500124's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: 500124's board of directors are considered experienced (7.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 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
  • Implied Market Cap: ₹716.515b
  • Shares outstanding: 165.97m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.