BSE:500124

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Executive Summary

Dr. Reddy's Laboratories Limited operates as an integrated pharmaceutical company worldwide. More Details


Snowflake Analysis

Flawless balance sheet average 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

-1.3%

500124

-0.8%

IN Pharmaceuticals

1.4%

IN Market


1 Year Return

80.0%

500124

48.4%

IN Pharmaceuticals

2.8%

IN Market

Return vs Industry: 500124 exceeded the Indian Pharmaceuticals industry which returned 48.4% over the past year.

Return vs Market: 500124 exceeded the Indian Market which returned 2.8% over the past year.


Shareholder returns

500124IndustryMarket
7 Day-1.3%-0.8%1.4%
30 Day-1.9%3.0%8.0%
90 Day24.9%12.3%7.8%
1 Year81.2%80.0%50.2%48.4%4.5%2.8%
3 Year114.2%109.4%25.7%22.3%-0.5%-5.3%
5 Year21.8%17.5%0.5%-3.1%41.5%31.0%

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?

44.55x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500124 (₹5015.9) is trading above our estimate of fair value (₹1238.97)

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 (44.6x) compared to the IN Pharmaceuticals industry average (22.8x).

PE vs Market: 500124 is poor value based on its PE Ratio (44.6x) compared to the Indian market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: 500124 is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: 500124 is overvalued based on its PB Ratio (5.1x) compared to the IN Pharmaceuticals industry average (2.2x).


Next Steps

Future Growth

How is Dr. Reddy's Laboratories forecast to perform in the next 1 to 3 years based on estimates from 29 analysts?

14.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500124's forecast earnings growth (14.4% per year) is above the savings rate (7.2%).

Earnings vs Market: 500124's earnings (14.4% per year) are forecast to grow slower than the Indian market (25.9% per year).

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

Revenue vs Market: 500124's revenue (8.6% per year) is forecast to grow slower than the Indian market (11.4% per year).

High Growth Revenue: 500124's revenue (8.6% 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 (15.7%).


Next Steps

Past Performance

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

0.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500124 has a large one-off loss of ₹16.0B impacting its June 30 2020 financial results.

Growing Profit Margin: 500124's current net profit margins (10.3%) are lower than last year (13.5%).


Past Earnings Growth Analysis

Earnings Trend: 500124's earnings have grown by 0.5% 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 (-10.8%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (14.7%).


Return on Equity

High ROE: 500124's Return on Equity (11.5%) is considered low.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: 500124's short term assets (₹132.9B) exceed its short term liabilities (₹79.9B).

Long Term Liabilities: 500124's short term assets (₹132.9B) exceed its long term liabilities (₹9.6B).


Debt to Equity History and Analysis

Debt Level: 500124's debt to equity ratio (17.2%) is considered satisfactory.

Reducing Debt: 500124's debt to equity ratio has reduced from 34% to 17.2% over the past 5 years.

Debt Coverage: 500124's debt is well covered by operating cash flow (111%).

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


Balance Sheet


Next Steps

Dividend

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

0.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 500124's dividend (0.5%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.55%).

High Dividend: 500124's dividend (0.5%) is low compared to the top 25% of dividend payers in the Indian market (2.28%).


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 (22.2%), 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 (12.7% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Erez Israeli (52 yo)

1.17yrs

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 ($USD2.65M) is above average for companies of similar size in the Indian market ($USD1.36M).

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

NamePositionTenureCompensationOwnership
Gunupati Prasad
Co-Chairman7.58yrs₹143.76m0.67%
₹ 5.6b
Kallam Reddy
Chairman of the Board & Member of the Management Council6.42yrs₹92.59m1.21%
₹ 10.1b
Erez Israeli
CEO & Member of the Management Council1.17yrs₹195.32mno data
Saumen Chakraborty
Presidentno data₹88.85m0.015%
₹ 126.1m
Deepak Sapra
Senior VPno data₹25.16m0.0027%
₹ 22.4m
M. Ramana
CEO of Branded Markets - India & Emerging Countries and Member of Management Councilno data₹57.48m0.014%
₹ 119.2m
Ganadhish Kamat
Executive VP4.5yrs₹46.74m0.0019%
₹ 15.8m
Anil Namboodiripad
Senior VP4.25yrs₹48.73m0.017%
₹ 139.5m
Archana Bhaskar
EVP, Head of Corporate Communications3.33yrs₹47.89m0.00096%
₹ 8.0m
Sauri Gudlavalleti
Senior VP2.5yrs₹25.62m0.0010%
₹ 8.7m
Yugandhar Puvvala
Senior VP2.5yrs₹31.36m0.0016%
₹ 13.2m
Raymond De Vré
Senior VP2.33yrs₹49.45mno data

2.5yrs

Average Tenure

52.5yo

Average Age

Experienced Management: 500124's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gunupati Prasad
Co-Chairman7.58yrs₹143.76m0.67%
₹ 5.6b
Kallam Reddy
Chairman of the Board & Member of the Management Council6.42yrs₹92.59m1.21%
₹ 10.1b
Bruce L. Carter
Independent Director12.25yrs₹12.26m0.0047%
₹ 39.1m
Kalpana Morparia
Independent Director13.33yrs₹11.35m0.0065%
₹ 54.2m
Allan Oberman
Independent & Non Whole-time Director1.58yrs₹11.88mno data
R. Rajgopalan
Member of the Scientific Advisory Boardno data₹8.36mno data
Prasad Menon
Lead Independent Director1.25yrs₹13.24mno data
Bharat Doshi
Independent Director4.42yrs₹12.49m0.00060%
₹ 5.0m
Sridar Iyengar
Independent Director9.17yrs₹13.01mno data
Shikha Sharma
Additional Independent Director1.75yrs₹11.35mno data
K. Reddy
Member of the Scientific Advisory Boardno datano datano data
Leo Puri
Independent & Non Whole-time Director2yrs₹11.88mno data

5.4yrs

Average Tenure

70yo

Average Age

Experienced Board: 500124's board of directors are considered experienced (5.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 500124 insiders have sold more shares than they have bought 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: ₹832.085b
  • Shares outstanding: 165.89m
  • 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

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 Analysis2020/10/25 12:33
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.