[Infographics] Dr Reddy Stock | Exact price target of Dr Reddy stock in future

Dr. Reddy Laboratories Ltd is a leading India-based pharmaceutical company that offers a portfolio of products and services, including Active Pharmaceutical Ingredients (APIs), Custom Pharmaceutical Services (CPS), generics, biosimilars, and differentiated formulations.

The company is a leading India-based pharmaceutical company headquartered and having its registered office in Hyderabad, Telangana, India. Through its three businesses – Pharmaceutical Services and Active Ingredients, Global Generics and Proprietary Products – the Company offers a portfolio of products and services, including Active Pharmaceutical Ingredients (APIs), Custom Pharmaceutical Services (CPS), generics, biosimilars and differentiated formulations.

Global Generics Segment (~80% of revenues)

This is the main business of the company wherein it offers 400+ high-quality generic drugs, keeping costs reasonable by leveraging its integrated operations. The company benefits from its expertise in active ingredients, product development skills, a keen understanding of regulations and intellectual property rights & streamlined supply chain.

The top revenue contributors of the segment are nervous system drugs (19%), gastrointestinal (14%) & oncology (13%).

Pharmaceutical Services & Active Ingredients (PSAI) (~15% of revenues)

The company is one of the largest manufacturers of APIs in the world. It works with several leading generic formulator companies in bringing their molecules first to the market. 

Its API development also helps its own generics business to be cost competitive and get to the market faster than competitors.

CPS – The company has one of the largest custom pharmaceutical services (CPS) business in India. It offers end-to-end product development and manufacturing services and solutions to innovator companies.

Top revenue contributors in the PSAI segment are cardiovascular (33%), pain management (20%) and nervous system (11%).

Proprietary Products & Others (~6% of revenues)

This segment focuses on developing differentiated formulations that present significantly enhanced benefits in terms of efficacy, ease of use, and the resolution of unmet patient needs.

The company’s wholly-owned subsidiary, Aurgene Discovery, is a clinical-stage biotech company that is working on bringing novel therapeutics for the treatment of cancer and inflammation. It has fully integrated drug discovery and development infrastructure from drug discovery and development infrastructure from hit generation to clinical development.

Geographical Revenue Breakup

Presently, the USA accounts for 44% of revenues, followed by India (18%), Russia (10%), and others (28%).

R&D Capabilities

The company has R&D operations through its 9 R&D facilities situated in India, the United Kingdom, Netherlands, and Malaysia.
The company’s R&D expenses as a % of total revenues has come down from 13% in FY18 to 9% in FY21.

Manufacturing Capabilities

Presently, the company has 23 manufacturing facilities across the world. It has 9 manufacturing facilities for manufacturing APIs and 14 facilities to manufacture formulations.
Its foreign manufacturing facilities are located in Mexico, United Kingdom, USA and China.

Drugs for Covid-19

During FY21, the company had partnered with various companies and organizations for manufacturing of various Covid-19 treatment drugs such as Remdesivir, Avigan, Molnupiravir, Baricitinib and various other crucial drugs used to treat covid-19.

Increasing focus on Niche Products

The company is increasing its focus on limited competition niche products, injectables and biosimilars, which are expected to provide a boost to its revenues and profitability in the medium term.

Acquisition of Wockhardt’s business

In June 2020, the company completed the acquisition of selected divisions of Wockhardt Ltd’s branded generics business in India, Nepal, Sri-Lanka, Bhutan and Maldives.
The deal comprised of 62 brands of Wockhardt along with its manufacturing plant located in Baddi, Himachal Pradesh. The consideration of the deal was 1,850 crores.

Dr Reddy Stock Today

Dr Reddy Chart

Dr Reddy Stock Index Presence

NIFTY100WEIGHT	NIFTYEQWGT	NIFTY100	NIFTY50	NIFTYALLO30
NIFTY500	NIFTYPHARMA	NT100LOW30	NIFTYLGEMID250	NIFTY200
NI15	NFTALQV30	NIFTYGR15	NIFTYLOWVOL	SENSEX
BSEHC	BSE500	SNSX50	BSE100	BSE200
LMI250	ALLCAP	LRGCAP	BSE100LARGECAPTMC	GREENEX
CARBONEX	SPBSLVIP	MFG	S&PDIVSTABLE	ESG100
SHA500	S&PLARGEMIDCAP

Dr Reddy Stock Infographics

Dr Reddy Stock Overview

PE Ratio	Sector PE	PB Ratio	Sector PB	Dividend Yield	Sector Div Yld
39.09	37.89	4.32	5.05	0.54%	0.68%

• Current price of Dr Reddy share is lower then intrinsic value.
• This stock offered good return as compared to fixed-deposit.
• Low dividend returns in past.
• Dr Reddy stock is not in ASM/GSM list

Read more about PE ratio with infographics | Read more about dividend and dividend yield with infographics

Dr Reddy Stock Financials

Income Table

Financial Year	FY 2018	FY 2019	FY 2020	FY 2021
Total Revenue	14,436.20	15,829.50	18,193.70	19,386.90
EBITDA	2,506.40	3,559.50	3,147.10	4,209.30
PBIT	1,429.20	2,424.70	1,984.00	2,980.50
PBT	1,350.40	2,335.80	1,885.70	2,883.50
Net Income	946.8	1,950.00	2,026.00	1,951.60
EPS	57.1	117.48	121.96	117.4
DPS	20	20	25	25
Payout ratio	0.35	0.17	0.2	0.21

Income Statement

Balance Sheet Table

Financial Year	FY 2018	FY 2019	FY 2020	FY 2021
Current Assets	10,498.40	11,110.10	12,599.10	14,550.30
Non Current Assets	11,850.90	11,308.20	10,624.20	12,037.60
Total Assets	22,349.30	22,418.30	23,223.30	26,587.90
Current Liabilities	6,893.80	5,897.30	7,214.10	8,103.80
Non Current Liabilities	2,883.90	2,497.40	410.4	842.4
Total Liabilities	9,777.70	8,394.70	7,624.50	8,946.20
Total Equity	12,571.60	14,023.60	15,598.80	17,641.70
Total Liabilities & Shareholder’s Equity	22,349.30	22,418.30	23,223.30	26,587.90
Total Common Shares Outstanding	16.59	16.61	16.62	16.63

Balance Sheet

Cash Flow Table

Financial Year	FY 2018	FY 2019	FY 2020	FY 2021
Net Change in Cash	-123.6	-31.4	-26.6	1,285.80
Changes in Working Capital	-1,172.70	-300.4	-1,464.10	-1,400.40
Capital Expenditures	1,104.30	837.6	611.5	1,256.10
Free Cash Flow	698.7	2,032.80	2,372.60	2,314.20

Cash Flow Statement

Lower than Industry Free Cash Flow Growth

Over the last 5 years, free cash flow growth has been 2.39%, vs industry avg of 37%

Peers of Dr Reddy

Stock	PE Ratio	PB Ratio	Dividend Yield
Dr Reddy’s Laboratories Ltd	39.09	4.32	0.54%
Sun pharmaceuticals Industries Ltd	64.36	3.78	0.96%
Cipla Ltd	29.97	3.88	0.56%
Gland Pharmas Ltd	57.84	9.77	—

• Sun Pharma offered highest PE ratio than Dr Reddy and Gland Pharma
• Gland pharma have highest PB ratio than peers.
• Dr Reddy have 0.54% dividend yield.

Read more about PE ratio with infographics and Dividend infographics

Dr Reddy Shareholders

Investors	Dec-18	Mar-19	Jun-19	Sep-19	Dec-19	Mar-20	Jun-20	Sep-20	Dec-20	Mar-21	Jun-21	Sep-21
Promoters	26.77	26.77	26.76	26.76	26.76	26.75	26.74	26.74	26.73	26.74	26.73	26.72
FIIs	29.69	30.93	30.73	30.05	30.04	30.15	29.33	29.58	29.13	29.03	29.04	27.76
DIIs	15.98	14.53	13.77	14.99	15.1	14.35	14.64	13.92	14.73	14.9	15.74	21.4
Public	27.43	27.64	28.5	27.97	27.87	28.51	29.06	29.53	29.19	28.99	28.17	23.83
Others	0.12	0.13	0.24	0.24	0.24	0.24	0.22	0.23	0.22	0.35	0.32	0.29

Dividend of Dr Reddy

Cash Dividend	Dividend/Share	Ex Date
Final	₹25.00	9-Jul-21
Cash Dividend	Dividend/Share	Ex Date
Final	₹25.00	13-Jul-20
Cash Dividend	Dividend/Share	Ex Date
Final	₹20.00	15-Jul-19
Cash Dividend	Dividend/Share	Ex Date
Final	₹20.00	16-Jul-18
Cash Dividend	Dividend/Share	Ex Date
Final	₹20.00	17-Jul-17

Dividend Trend

Read more about dividend and dividend yield with infographics

Strength and Limitations

Expert Forecast

The stock forecast of Dr Reddy stock for the year 2022

Future stock price targets of Dr Reddy stock

Target of Dr Reddy	Future Stock Price
2022	7200 to 7400
2025	12000 to 14500
2030	20000 to 22500
2035	30000 to 42000
2040	55000 to 60000

Please Note

All the views and contents mentioned in this blog are merely for educational purposes and are not recommendations or tips offered to any person(s) with respect to the purchase or sale of the stocks / futures. I do not accept any liability/loss accruing from the use of any content from this blog. All readers of this blog must rely on their own discretion and neither any analyst nor any publisher shall be responsible for the outcome.

Stock Forecast Predictions

With the calculations on the basis of CAGR, the long-term investment in Dr Reddy comes very amazing numbers. Look at the table below (Investment value 45900)

Prediction of Maruti	Future Investments
After 1 year	Rs.494000
5 year	Rs.665107
10 year	Rs.963762
15 year	Rs.1396765
20 year	Rs.2023610
25 year	Rs.2932729

Read How Rs.10,000 converted into 1770 Crores Wipro case study?

Conclusion

Dr. Reddy Laboratories Ltd is a leading India-based pharmaceutical company that offers a portfolio of products and services, including Active Pharmaceutical Ingredients (APIs), Custom Pharmaceutical Services (CPS), generics, biosimilars, and differentiated formulations.

Dr Readdy is a very strong fundamental stock in NSE. This stock gave a high dividend per share every year.

We highly recommend Maruti stock for future investments.

Let’s look at the ratios of Dr. Reddy

PE Ratio	Sector PE	PB Ratio	Sector PB	Dividend Yield	Sector Div Yld
39.09	37.89	4.32	5.05	0.54%	0.68%

Check Dr Reddy on NSE

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