| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 1/6 |
| Past Performance | 4/6 |
| Financial Health | 6/6 |
| Dividends | 5/6 |
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
| Historical stock prices | |
|---|---|
| Current Share Price | ₹4,317.15 |
| 52 Week High | ₹5,613.65 |
| 52 Week Low | ₹3,655.00 |
| Beta | 0.18 |
| 1 Month Change | -1.70% |
| 3 Month Change | -0.10% |
| 1 Year Change | -20.11% |
| 3 Year Change | 62.60% |
| 5 Year Change | 61.04% |
| Change since IPO | 25,265.12% |
Recent News & Updates
Shareholder Returns
| 500124 | IN Pharmaceuticals | IN Market | |
|---|---|---|---|
| 7D | 4.0% | 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
| 500124 volatility | |
|---|---|
| 500124 Average Weekly Movement | 4.0% |
| Pharmaceuticals Industry Average Movement | 6.8% |
| Market Average Movement | 6.9% |
| 10% most volatile stocks in IN Market | 9.9% |
| 10% least volatile stocks in IN Market | 4.5% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1984 | 22,739 | Erez Israeli | https://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
| 500124 fundamental statistics | |
|---|---|
| Market Cap | ₹716.51b |
| Earnings (TTM) | ₹23.57b |
| Revenue (TTM) | ₹214.39b |
30.4x
P/E Ratio3.3x
P/S RatioIs 500124 overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| 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 Margin | 53.10% |
| Net Profit Margin | 10.99% |
| Debt/Equity Ratio | 17.2% |
How did 500124 perform over the long term?
See historical performance and comparisonDividends
0.7%
Current Dividend Yield21%
Payout RatioDoes 500124 pay a reliable dividends?
See 500124 dividend history and benchmarks| Dr. Reddy's Laboratories dividend dates | |
|---|---|
| Ex Dividend Date | Jul 11 2022 |
| Dividend Pay Date | Aug 28 2022 |
| Days until Ex dividend | 13 days |
| Days until Dividend pay date | 61 days |
Does 500124 pay a reliable dividends?
See 500124 dividend history and benchmarksValuation
Is 500124 undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
1/6Valuation 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.
| What is 500124's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | ₹716.51b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 3.3x |
| Enterprise Value/EBITDA | 14.4x |
| PEG Ratio | 1.8x |
Price to Earnings Ratio vs Peers
How does 500124's PE Ratio compare to its peers?
| 500124 PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 40.5x | ||
CIPLA Cipla | 29.9x | 16.9% | ₹752.3b |
500420 Torrent Pharmaceuticals | 62.3x | 26.0% | ₹484.1b |
500488 Abbott India | 47.9x | n/a | ₹382.3b |
539523 Alkem Laboratories | 22x | 10.6% | ₹362.6b |
500124 Dr. Reddy's Laboratories | 30.4x | 16.6% | ₹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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 30.4x |
| Fair PE Ratio | 29.4x |
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
1/6Future 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
4/6Past 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
6/6Financial 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
5/6Dividend Score 5/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
0.69%
Current Dividend Yield
Upcoming Dividend Payment
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.
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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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/06/27 00:00 |
| End of Day Share Price | 2022/06/27 00:00 |
| Earnings | 2022/03/31 |
| Annual Earnings | 2022/03/31 |
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.