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Dr. Reddy's Laboratories

BSE:500124
Snowflake Description

Flawless balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
500124
BSE
₹438B
Market Cap
  1. Home
  2. IN
  3. Pharmaceuticals & Biotech
Company description

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
-3.1%
BSE:500124
-1.2%
IN Pharmaceuticals
3.3%
IN Market
1 Year Returns
35.1%
BSE:500124
-2.2%
IN Pharmaceuticals
-0.5%
IN Market
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.
Price Volatility
500124
Industry
5yr Volatility vs Market

Value

 Is Dr. Reddy's Laboratories undervalued based on future cash flows and its price relative to the stock market?

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Dr. Reddy's Laboratories.

BSE:500124 Discounted Cash Flow Data Sources
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.

Calculation of Discount Rate/ Cost of Equity for BSE:500124
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.

BSE:500124 DCF 1st Stage: Next 10 year cash flow forecast
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
BSE:500124 DCF 2nd Stage: Terminal Value
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
BSE:500124 Total Equity Value
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
BSE:500124 Discount to Share Price
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.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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?
Raw Data
BSE:500124 PE (Price to Earnings) Ratio Data Sources
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.

BSE:500124 PE (Price to Earnings) Ratio Calculation
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?
Raw Data
BSE:500124 PEG (Price to Earnings to Growth) Ratio Data Sources
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 .

BSE:500124 PEG (Price to Earnings to Growth) Ratio Calculation
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?
Raw Data
BSE:500124 PB (Price to Book) Ratio Data Sources
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
BSE:500124 PB (Price to Book) Ratio Calculation
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.
X
Value checks
We assess Dr. Reddy's Laboratories's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Pharmaceuticals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Pharmaceuticals industry average (and greater than 0)? (1 check)
  5. 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

 How is Dr. Reddy's Laboratories expected to perform in the next 1 to 3 years based on estimates from 32 analysts?

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!
Annual Growth Rate
13.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Dr. Reddy's Laboratories expected to grow at an attractive rate?
  • 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
Raw Data
BSE:500124 Future Growth Rates Data Sources
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
Raw Data
BSE:500124 Analysts Growth Expectations Data Sources
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 numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BSE:500124 Future Estimates Data
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
BSE:500124 Past Financials Data
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.

Super high growth metrics
High Growth Checks
  • Dr. Reddy's Laboratories's earnings are expected to grow by 13.8% yearly, however this is not considered high growth (20% yearly).
  • Dr. Reddy's Laboratories's revenue is expected to grow by 10.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BSE:500124 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.

BSE:500124 Future Estimates Data
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
BSE:500124 Past Financials Data
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%).
X
Future performance checks
We assess Dr. Reddy's Laboratories's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare Dr. Reddy's Laboratories's growth in the last year to its industry (Pharmaceuticals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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
Dr. Reddy's Laboratories's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

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.

BSE:500124 Past Revenue, Cash Flow and Net Income Data
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).
X
Past performance checks
We assess Dr. Reddy's Laboratories's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Pharmaceuticals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Dr. Reddy's Laboratories's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • 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.
Raw Data

All data from Dr. Reddy's Laboratories Company Filings, last reported 1 month ago.

BSE:500124 Past Debt and Equity Data
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.
X
Financial health checks
We assess Dr. Reddy's Laboratories's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Dr. Reddy's Laboratories has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
0.75%
Current annual income from Dr. Reddy's Laboratories dividends. Estimated to be 0.98% next year.
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
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Raw Data
BSE:500124 Annualized Past and Future Dividends
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.

BSE:500124 Future Dividends Estimate Data
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
BSE:500124 Past Annualized Dividends Data
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).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (6.8x coverage).
X
Income/ dividend checks
We assess Dr. Reddy's Laboratories's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

 What is the CEO of Dr. Reddy's Laboratories's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Gunupati Prasad
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:

2.4
Average Tenure
51
Average Age
  • The tenure for the Dr. Reddy's Laboratories management team is about average.
Management Team

Gunupati Prasad

TITLE
Co-Chairman
COMPENSATION
₹77M
AGE
58
TENURE
18.3 yrs

Kallam Reddy

TITLE
Chairman of the Board & Member of the Management Council
COMPENSATION
₹57M
AGE
51

Saumen Chakraborty

TITLE
President
COMPENSATION
₹92M
AGE
57

M. Ramana

TITLE
CEO & Head of Branded Markets - India & Emerging Countries and Member of Management Council
COMPENSATION
₹41M
AGE
49

Ganadhish Kamat

TITLE
Executive VP
COMPENSATION
₹31M
AGE
55
TENURE
3.1 yrs

Anil Namboodiripad

TITLE
Senior VP
COMPENSATION
₹33M
AGE
51
TENURE
2.8 yrs

Archana Bhaskar

TITLE
Executive VP
COMPENSATION
₹27M
AGE
50
TENURE
1.9 yrs

Sanjay Sharma

TITLE
Executive VP
COMPENSATION
₹20M
AGE
49
TENURE
1.8 yrs

Sandeep Poddar

TITLE
Company Secretary & Chief Compliance Officer
COMPENSATION
₹9M

Erez Israeli

TITLE
COO, Global Head of Generics & PSAI Business and Member of the Management Council
AGE
50
TENURE
1.1 yrs
Board of Directors Tenure

Average tenure and age of the Dr. Reddy's Laboratories board of directors in years:

7.8
Average Tenure
69
Average Age
  • The tenure for the Dr. Reddy's Laboratories board of directors is about average.
Board of Directors

Kallam Reddy

TITLE
Chairman of the Board & Member of the Management Council
COMPENSATION
₹57M
AGE
51
TENURE
5 yrs

Omkar Goswami

TITLE
Independent Director
COMPENSATION
₹7M
AGE
62
TENURE
18.6 yrs

Gunupati Prasad

TITLE
Co-Chairman
COMPENSATION
₹77M
AGE
58
TENURE
6.2 yrs

Tino Puri

TITLE
Lead Independent Director
COMPENSATION
₹9M
AGE
73

Bruce L. Carter

TITLE
Independent Director
COMPENSATION
₹8M
AGE
75
TENURE
10.8 yrs

Sridar Iyengar

TITLE
Independent Director
COMPENSATION
₹8M
AGE
71
TENURE
7.8 yrs

Bharat Doshi

TITLE
Independent Director
COMPENSATION
₹9M
AGE
69
TENURE
3 yrs

R. Rajgopalan

TITLE
Member of the Scientific Advisory Board
COMPENSATION
₹8M
AGE
68

K. Reddy

TITLE
Member of the Scientific Advisory Board

Kalpana Morparia

TITLE
Independent Director
COMPENSATION
₹7M
AGE
69
TENURE
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
X
Management checks
We assess Dr. Reddy's Laboratories's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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 -

Company 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
Staff numbers
23,524
Dr. Reddy's Laboratories employees.
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.