BSE:500124

Stock Analysis Report

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

500124IndustryMarket
7 Day-0.01%-2.1%-1.1%
30 Day6.3%9.1%5.8%
90 Day12.1%3.4%9.0%
1 Year16.5%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

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

company0.7%marketbottom25%0.6%markettop25%2.4%industryaverage0.8%forecastin3Years0.9%

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

0

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

Sell₹2,799,08830 Oct 19
Amit Kaptain
EntityIndividual
Shares1,000
Max Price₹2,799.09
Sell₹688,00003 Oct 19
Nirav Shah
EntityIndividual
Shares250
Max Price₹2,752.00
Sell₹1,059,53601 Oct 19
K Seshaiah
EntityIndividual
Shares400
Max Price₹2,803.49
Sell₹6,907,59301 Oct 19
M. Ramana
EntityIndividual
Role
Member of Management Board
CEO & Head of Branded Markets - India & Emerging Countries and Member of Management Council
Shares2,500
Max Price₹2,763.04
Sell₹1,390,00001 Oct 19
J. Babu
EntityIndividual
Shares500
Max Price₹2,780.00
Sell₹1,412,70027 Sep 19
BNV Rao
EntityIndividual
Shares510
Max Price₹2,770.00
Sell₹5,618,00024 Sep 19
A. Karunakar
EntityIndividual
Shares2,000
Max Price₹2,809.00
Sell₹1,702,00012 Sep 19
Ravinder Kodipyaka
EntityIndividual
Shares650
Max Price₹2,618.46
Sell₹1,174,64212 Sep 19
Sundeep Bhatia
EntityIndividual
Shares442
Max Price₹2,657.56
Sell₹1,088,78510 Sep 19
Dama Rao
EntityIndividual
Shares400
Max Price₹2,721.96
Sell₹2,280,50027 Aug 19
Suresh Kankanwadi
EntityIndividual
Shares900
Max Price₹2,533.89
Sell₹1,545,00001 Jul 19
Kolli Reddy
EntityIndividual
Shares600
Max Price₹2,575.00
Sell₹2,560,00001 Jul 19
V. Dikshit
EntityIndividual
Shares1,000
Max Price₹2,560.00
Buy₹473,365,47422 May 19
Dr. Reddy's Laboratories Limited., Employees Stock Ownership Plan
EntityCompany
Shares179,124
Max Price₹2,669.04
Sell₹1,345,20720 Mar 19
Nirav Shah
EntityIndividual
Shares500
Max Price₹2,738.05
Sell₹1,445,68315 Mar 19
Pankaj Phatak
EntityIndividual
Shares550
Max Price₹2,628.51
Sell₹1,314,62015 Mar 19
Sundeep Bhatia
EntityIndividual
Shares500
Max Price₹2,629.24
Sell₹1,967,46815 Mar 19
V. Dikshit
EntityIndividual
Shares738
Max Price₹2,665.95
Buy₹38,483,58218 Feb 19
Dr. Reddy's Laboratories Limited., Employees Stock Ownership Plan
EntityCompany
Shares15,903
Max Price₹2,419.89
Sell₹1,596,02614 Feb 19
B. Chakravarthy
EntityIndividual
Shares563
Max Price₹2,834.86
Sell₹3,405,45704 Jan 19
Bijaygopal Chakrabarti
EntityIndividual
Shares1,324
Max Price₹2,572.10
Sell₹1,223,15203 Jan 19
K Raju
EntityIndividual
Shares469
Max Price₹2,608.00
Sell₹2,674,04710 Dec 18
J. Babu
EntityIndividual
Shares1,000
Max Price₹2,674.05
Sell₹957,00004 Dec 18
G. Shankarnarayan
EntityIndividual
Shares367
Max Price₹2,607.63
Sell₹1,352,50004 Dec 18
Ashish Nigam
EntityIndividual
Shares500
Max Price₹2,705.00
Sell₹1,301,29527 Nov 18
Gopinath Balu
EntityIndividual
Shares500
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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500124BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 1998
DRREDDYNSEI (National Stock Exchange of India)YesEquity SharesININRNov 1998
RDYNYSE (New York Stock Exchange)ADS EACH REPR 1 ORD INR5USUSDApr 2001
RDDADB (Deutsche Boerse AG)ADS EACH REPR 1 ORD INR5DEEURApr 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/12 12:43
End of Day Share Price2019/11/11 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.