Dr. Reddy’s Laboratories Ltd’s fundamental analysis highlights key financial metrics including a market capitalization of ₹1,16,301.07 crore, a PE ratio of 21.09, and a debt-to-equity ratio of 0.07. The return on equity (ROE) is 21.4%. These figures reflect the company’s financial health and strong market position.
Content:
- Dr. Reddy’s Laboratories Ltd Overview
- Dr. Reddy’s Laboratories Financial Results
- Dr. Reddy’s Laboratories Financial Analysis
- Dr. Reddy’s Laboratories Company Metrics
- Dr. Reddy’s Laboratories Stock Performance
- Dr. Reddy’s Laboratories Peer Comparison
- Dr. Reddy’s Laboratories Shareholding Pattern
- Dr. Reddy’s Laboratories History
- How To Invest In Dr. Reddy’s Laboratories Ltd Share?
- Dr. Reddy’s Laboratories Limited Fundamental Analysis – FAQs
Dr. Reddy’s Laboratories Ltd Overview
Dr. Reddy’s Laboratories Ltd is a leading Indian pharmaceutical company specializing in the development and manufacture of generic medicines, active pharmaceutical ingredients (APIs), and biologics. It is renowned for its commitment to providing affordable and innovative healthcare solutions globally.
The company has a market capitalization of ₹1,16,301.07 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading at its 52-week high of ₹7,036, significantly above its 52-week low of ₹5,206, reflecting strong investor confidence and market performance. The all-time high of the stock is ₹7,036, while the all-time low is ₹302.
Dr. Reddy’s Laboratories Financial Results
Dr. Reddy’s Laboratories demonstrated strong financial growth from FY 22 to FY 24, with sales increasing from ₹21,545 crore to ₹28,011 crore and EBITDA rising from ₹4,252 crore to ₹8,827 crore. The company maintained a stable OPM and improved EPS over the years.
- Revenue Trend: Sales increased from ₹21,545 crore in FY 22 to ₹24,670 crore in FY 23, and further to ₹28,011 crore in FY 24, indicating robust revenue growth.
- Equity and Liabilities: Dr. Reddy’s Laboratories’ equity and liabilities structure showcases financial stability and strategic choices. It balances equity financing and manageable debt, ensuring sustainability and flexibility in capital allocation for projects.
- Profitability: Operating Profit Margin (OPM) increased from 17% in FY 22 to 26% in FY 23, and further to 28% in FY 24, reflecting improved operational efficiency and profitability.
- Earnings per Share (EPS): Dr. Reddy’s Laboratories Ltd has an EPS of ₹334, indicating the amount of profit attributed to each outstanding share of common stock, reflecting the company’s profitability for its shareholders.
- Return on Net Worth (RoNW): RoNW increased from 8.85% in FY 22 to 12.76% in FY 23, but slightly declined to 7.91% in FY 24, indicating effective use of equity and overall profitability.
- Financial Position: The company’s financial position strengthened with EBITDA increasing from ₹4,252 crore in FY 22 to ₹7,405 crore in FY 23, and further to ₹8,827 crore in FY 24, showcasing robust financial health and effective management.
Dr. Reddy’s Laboratories Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 28,011 | 24,670 | 21,545 |
| Expenses | 20,078 | 18,321 | 17,778 |
| Operating Profit | 7,933 | 6,349 | 3,768 |
| OPM % | 28 | 26 | 17 |
| Other Income | 894.3 | 1,056 | 484.4 |
| EBITDA | 8,827 | 7,405 | 4,252 |
| Interest | 171.1 | 142.8 | 95.8 |
| Depreciation | 1,470 | 1,250 | 1,165 |
| Profit Before Tax | 7,186 | 6,012 | 2,991 |
| Tax % | 22.59 | 25.64 | 29.38 |
| Net Profit | 5,578 | 4,507 | 2,183 |
All values in ₹ Crores.
Dr. Reddy’s Laboratories Company Metrics
Dr. Reddy’s Laboratories Ltd has a market capitalization of ₹1,16,301.07 crore. Its EBITDA increased from ₹4,252 crore in FY 22 to ₹7,405 crore in FY 23, and further to ₹8,827 crore in FY 24, showcasing improving profitability.
Market Capitalization: Represents the total market value of Dr. Reddy’s Laboratories Ltd’s outstanding shares, amounting to ₹1,16,301.07 crore.
Book Value: Dr. Reddy’s Laboratories Ltd has a book value of ₹1,694 per share, representing the net asset value of the company divided by the number of outstanding shares.
Face Value: The face value of Dr. Reddy’s Laboratories Ltd’s shares is ₹5.00, which is the nominal value of each share as stated on the share certificate.
Asset Turnover: Dr. Reddy’s Laboratories Ltd has an asset turnover ratio of 0.79, indicating the company’s efficiency in using its assets to generate revenue.
Total Debt: Dr. Reddy’s Laboratories Ltd has a total debt of ₹2,002 crore, reflecting its financial leverage and obligations. Managing this debt effectively is crucial for the company’s long-term financial stability and growth.
EBITDA: Dr. Reddy’s Laboratories Ltd’s EBITDA increased from ₹4,252 crore in FY 22 to ₹7,405 crore in FY 23, and further to ₹8,827 crore in FY 24, indicating improving operational performance and profitability over these years.
Dividend Yield: Dr. Reddy’s Laboratories Ltd has a dividend yield of 0.57%, reflecting the annual dividend income relative to its current share price.
Dr. Reddy’s Laboratories Stock Performance
Dr. Reddy’s Laboratories Ltd delivered notable returns on investment with 20.4% over 1 year, 14.7% over 3 years, and 22.8% over 5 years, highlighting solid long-term performance and consistent profitability for investors.
| Period | Return on Investment (%) |
| 1 Year | 20.4 |
| 3 Years | 14.7 |
| 5 Years | 22.8 |
Example: If an investor had invested ₹1,000 in Dr. Reddy’s Laboratories Ltd’s stock:
1 year ago, their investment would be worth ₹1,204.
3 years ago, their investment would have grown to ₹1,147.
5 years ago, their investment would have increased to approximately ₹1,228.
This highlights solid long-term performance and consistent profitability for investors.
Dr. Reddy’s Laboratories Peer Comparison
Sun Pharma leads with a market cap of ₹4,16,608.54 crore and a 1-year return of 53.25%. Zydus Lifesci follows with a market cap of ₹1,27,032.07 crore and a 1-year return of 99.85%. Cipla, Dr. Reddy’s Labs, Lupin, Aurobindo Pharma, and Mankind Pharma also show diverse performance metrics.
| CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | EPS 12M Rs. | 1Yr return % | ROCE % | Div Yld % | |
| Sun Pharma.Inds. | 1736.35 | 416608.54 | 39.51 | 16.69 | 43.3 | 53.25 | 17.32 | 0.78 |
| Cipla | 1578.25 | 127452.06 | 28.76 | 16.79 | 53.3 | 25.96 | 22.8 | 0.82 |
| Zydus Lifesci. | 1262.45 | 127032.07 | 30.51 | 20.67 | 41.57 | 99.85 | 22.34 | 0.23 |
| Dr Reddy’s Labs | 6961.15 | 116132.64 | 20.88 | 21.39 | 333.63 | 20.44 | 26.53 | 0.57 |
| Lupin | 2091.1 | 95357.56 | 42.13 | 14.14 | 49.69 | 96.26 | 15.72 | 0.38 |
| Aurobindo Pharma | 1455.65 | 85292.16 | 23.82 | 11.53 | 60.1 | 67.95 | 14.1 | 0.3 |
| Mankind Pharma | 2110.05 | 84536.02 | 45.11 | 19.71 | 48.12 | 16.61 | 24.57 | 0 |
Dr. Reddy’s Laboratories Shareholding Pattern
Dr. Reddy’s Laboratories’ shareholding pattern from FY 2023 to FY 2024 shows promoters’ holdings slightly decreasing from 26.7% to 26.65%. FIIs increased from 27.25% to 29.13%, while DIIs decreased from 34.35% to 33.66%. Retail and others’ holdings decreased from 11.7% to 10.55%, indicating a shift in investor composition.
| FY 2024 | FY 2023 | FY 2022 | |
| Promoters | 26.65 | 26.7 | 26.72 |
| FII | 29.13 | 27.25 | 25.16 |
| DII | 33.66 | 34.35 | 24.79 |
| Retail & others | 10.55 | 11.7 | 23.35 |
All values in %
Dr. Reddy’s Laboratories History
Dr. Reddy’s Laboratories was founded in 1984 by Dr. K. Anji Reddy in Hyderabad, India. Initially, the company focused on producing active pharmaceutical ingredients (APIs) and quickly expanded its operations to cater to the global market.
In the 1990s, Dr. Reddy’s Laboratories diversified into the formulation business, launching branded and generic medications. This strategic move helped the company gain a significant foothold in the Indian pharmaceutical market and set the stage for international expansion.
During the early 2000s, Dr. Reddy’s Laboratories entered the U.S. generic drug market, achieving notable success with several high-profile product launches. The company’s focus on research and development enabled it to develop a robust pipeline of innovative drugs.
In 2015, Dr. Reddy’s Laboratories acquired Betapharm, a leading generics company in Germany, enhancing its presence in the European market. This acquisition marked a significant milestone in the company’s global expansion strategy, solidifying its position in the pharmaceutical industry.
Today, Dr. Reddy’s Laboratories is a global pharmaceutical giant with a strong presence in over 100 countries. The company’s commitment to quality, innovation, and affordable healthcare solutions continues to drive its growth and success in the global market.
How To Invest In Dr. Reddy’s Laboratories Ltd Share?
Investing in Dr. Reddy’s Laboratories shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for Dr. Reddy’s Laboratories shares and place your buy order.
Dr. Reddy’s Laboratories Limited Fundamental Analysis – FAQs
Dr. Reddy’s Laboratories Ltd’s fundamental analysis highlights key financial metrics including a market capitalization of ₹1,16,301.07 crore, a PE ratio of 21.09, and a debt-to-equity ratio of 0.07. The return on equity (ROE) is 21.4%.
Dr. Reddy’s Laboratories Ltd’s market capitalization is ₹1,16,301.07 crore, reflecting the total market value of its outstanding shares and indicating its substantial market presence in the pharmaceutical industry.
Dr. Reddy’s Laboratories Limited is a global pharmaceutical company based in India, specializing in the development, manufacture, and marketing of a wide range of generic and branded medications.
Dr. Reddy’s Laboratories was founded by Dr. K. Anji Reddy. The company is primarily owned by institutional investors, with significant shares held by promoters, FIIs, DIIs, and retail investors.
The main shareholders of Dr. Reddy’s Laboratories are promoters with 26.65%, Foreign Institutional Investors (FIIs) with 29.13%, Domestic Institutional Investors (DIIs) with 33.66%, and retail and other investors holding 10.55%.
Dr. Reddy’s Laboratories operates in the pharmaceutical industry, focusing on the development, manufacture, and marketing of generic and branded medications, as well as active pharmaceutical ingredients (APIs).
To invest in Dr. Reddy’s Laboratories Ltd shares, open a brokerage account, complete KYC, deposit funds, and purchase shares through the stock exchange using your broker’s platform or app.
Determining if Dr. Reddy’s Laboratories is overvalued or undervalued requires analyzing its current market price compared to its intrinsic value, considering factors like PE ratio, growth prospects, and industry comparisons. As of now, its PE ratio of 21.09 suggests the stock may be overvalued compared to its earnings, indicating a higher market price relative to the company’s profitability.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
