Dr. Reddy's Laboratories Limited

BSE:500124 Stock Report

Market Cap: ₹1.1t

Dr. Reddy's Laboratories Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

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 (₹6665.1) is trading above our estimate of fair value (₹3599.79)

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


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/Revenue3.7x
Enterprise Value/EBITDA13.2x
PEG Ratio-9x

Price to Earnings Ratio vs Peers

How does 500124's PE Ratio compare to its 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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average42x
ZYDUSLIFE Zydus Lifesciences
31.1x5.0%₹1.2t
500420 Torrent Pharmaceuticals
62.4x20.3%₹1.0t
CIPLA Cipla
29.5x9.0%₹1.2t
MANKIND Mankind Pharma
44.8x15.7%₹847.6b
500124 Dr. Reddy's Laboratories
19.9x-2.2%₹1.1t

Price-To-Earnings vs Peers: 500124 is good value based on its Price-To-Earnings Ratio (19.9x) compared to the peer average (42x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.3%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.3%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: 500124 is good value based on its Price-To-Earnings Ratio (19.9x) compared to the Indian Pharmaceuticals industry average (34.7x).


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 Ratio19.9x
Fair PE Ratio32.1x

Price-To-Earnings vs Fair Ratio: 500124 is good value based on its Price-To-Earnings Ratio (19.9x) compared to the estimated Fair Price-To-Earnings Ratio (32.1x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 500124 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹6,665.10
₹6,164.31
-7.5%
11.6%₹7,500.00₹4,245.00n/a36
Jul ’25₹6,351.50
₹6,161.44
-3.0%
11.7%₹7,500.00₹4,245.00n/a36
Jun ’25₹5,787.55
₹6,093.41
+5.3%
11.4%₹7,500.00₹4,245.00n/a37
May ’25₹6,205.10
₹5,995.28
-3.4%
10.8%₹6,785.00₹3,915.00n/a36
Apr ’25₹6,250.85
₹5,977.58
-4.4%
11.3%₹7,587.00₹3,915.00n/a36
Mar ’25₹6,197.40
₹5,968.86
-3.7%
11.2%₹7,587.00₹3,915.00n/a37
Feb ’25₹5,989.85
₹5,958.14
-0.5%
11.1%₹7,587.00₹3,915.00n/a37
Jan ’25₹5,819.05
₹5,671.73
-2.5%
10.7%₹6,550.00₹3,773.00n/a37
Dec ’24₹5,747.40
₹5,660.29
-1.5%
10.7%₹6,550.00₹3,773.00n/a38
Nov ’24₹5,347.60
₹5,686.08
+6.3%
10.9%₹6,560.00₹3,773.00n/a38
Oct ’24₹5,586.75
₹5,548.05
-0.7%
11.7%₹6,560.00₹3,794.00n/a38
Sep ’24₹5,578.20
₹5,516.05
-1.1%
12.2%₹6,560.00₹3,794.00n/a39
Aug ’24₹5,664.15
₹5,495.23
-3.0%
12.0%₹6,560.00₹3,794.00n/a39
Jul ’24₹5,156.00
₹4,973.78
-3.5%
11.5%₹6,000.00₹3,550.00₹6,351.5036
Jun ’24₹4,551.20
₹4,967.53
+9.1%
11.3%₹6,000.00₹3,550.00₹5,787.5538
May ’24₹4,926.50
₹4,965.68
+0.8%
9.8%₹5,890.00₹3,550.00₹6,205.1038
Apr ’24₹4,621.50
₹4,911.21
+6.3%
9.5%₹5,890.00₹3,550.00₹6,250.8538
Mar ’24₹4,346.95
₹4,894.00
+12.6%
9.4%₹5,890.00₹3,550.00₹6,197.4039
Feb ’24₹4,350.50
₹4,883.54
+12.3%
9.6%₹5,890.00₹3,550.00₹5,989.8539
Jan ’24₹4,234.40
₹5,001.26
+18.1%
9.3%₹5,960.00₹3,600.00₹5,819.0538
Dec ’23₹4,472.25
₹5,001.26
+11.8%
9.3%₹5,960.00₹3,600.00₹5,747.4038
Nov ’23₹4,539.80
₹5,002.58
+10.2%
9.2%₹5,960.00₹3,600.00₹5,347.6038
Oct ’23₹4,333.95
₹4,868.63
+12.3%
8.8%₹5,820.00₹4,050.00₹5,586.7538
Sep ’23₹4,204.20
₹4,868.63
+15.8%
8.8%₹5,820.00₹4,050.00₹5,578.2038
Aug ’23₹4,111.80
₹4,883.89
+18.8%
8.9%₹5,820.00₹4,050.00₹5,664.1538
Jul ’23₹4,384.35
₹4,966.38
+13.3%
7.4%₹5,700.00₹4,400.00₹5,156.0037

Analyst Forecast: Target price is lower than the current share price.


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