[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 REDDYS LABS
DRREDDY.NS
₹ 4,302.00
-1.61%
Marketcap
713.93B
Volume
₹ 369,303.00
Shares
165,954,000
Range
₹ 4,290.60 - ₹ 4,362.35
52 Week Range
₹ 3,654.00 - ₹ 5,614.60
DR REDDYS LABS
sector
Healthcare
industryDrug Manufacturers—Specialty & Generic
address8-2-337, Road No. 3, Hyderabad, India
countryIndia
phone91 40 4900 2900
websitehttp://www.drreddys.com
DR REDDYS LABS
₹ 4,302.00
Open ₹ 4,351.00
High ₹ 4,362.35
Marketcap 713.93B
Close ₹ 4,302.00
Low ₹ 4,290.60
Volume ₹ 369,303.00

Dr Reddy Chart

Dr Reddy Stock Index Presence

NIFTY100WEIGHTNIFTYEQWGTNIFTY100NIFTY50NIFTYALLO30
NIFTY500NIFTYPHARMANT100LOW30NIFTYLGEMID250NIFTY200
NI15NFTALQV30NIFTYGR15NIFTYLOWVOLSENSEX
BSEHCBSE500SNSX50BSE100BSE200
LMI250ALLCAPLRGCAPBSE100LARGECAPTMCGREENEX
CARBONEXSPBSLVIPMFGS&PDIVSTABLEESG100
SHA500S&PLARGEMIDCAP   

Dr Reddy Stock Infographics

Dr Reddy stock infographics
Dr Reddy stock infographics by Kamlesh Rode, created in figma.com

Dr Reddy Stock Overview

Dr Reddy Stock infographics overview
PE RatioSector PEPB RatioSector PBDividend YieldSector Div Yld
39.0937.894.325.050.54%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

Dr Reddy stock infographics - financials

Income Table

Financial YearFY 2018FY 2019FY 2020FY 2021
Total Revenue14,436.2015,829.5018,193.7019,386.90
EBITDA2,506.403,559.503,147.104,209.30
PBIT1,429.202,424.701,984.002,980.50
PBT1,350.402,335.801,885.702,883.50
Net Income946.81,950.002,026.001,951.60
EPS57.1117.48121.96117.4
DPS20202525
Payout ratio0.350.170.20.21
EPS and DPS in ₹. Other numbers except for Payout Ratio in ₹ cr

Income Statement

Lower than Industry Revenue Growth

Over the last 5 years, revenue has grown at a yearly rate of 4.09%, vs industry avg of 6.96%

Lower than Industry Net Income

Over the last 5 years, net income has grown at a yearly rate of -1.74%, vs industry avg of 7.95%

Decreasing Market Share

Over the last 5 years, market share decreased from 8.67% to 7.55%

Balance Sheet Table

Financial YearFY 2018FY 2019FY 2020FY 2021
Current Assets10,498.4011,110.1012,599.1014,550.30
Non Current Assets11,850.9011,308.2010,624.2012,037.60
Total Assets22,349.3022,418.3023,223.3026,587.90
Current Liabilities6,893.805,897.307,214.108,103.80
Non Current Liabilities2,883.902,497.40410.4842.4
Total Liabilities9,777.708,394.707,624.508,946.20
Total Equity12,571.6014,023.6015,598.8017,641.70
Total Liabilities & Shareholder’s Equity22,349.3022,418.3023,223.3026,587.90
Total Common Shares Outstanding16.5916.6116.6216.63
Shares outstanding numbers in cr. Other numbers in ₹ cr

Balance Sheet

Lower than Industry Debt to Equity Ratio

Over the last 5 years, debt to equity ratio has been 27.83%, vs industry avg of 39.71%

Lower than Industry Current Ratio

Over the last 5 years, current ratio has been 161.98%, vs industry avg of 165.22%

Cash Flow Table

Financial YearFY 2018FY 2019FY 2020FY 2021
Net Change in Cash-123.6-31.4-26.61,285.80
Changes in Working Capital-1,172.70-300.4-1,464.10-1,400.40
Capital Expenditures1,104.30837.6611.51,256.10
Free Cash Flow698.72,032.802,372.602,314.20
All numbers in ₹ cr

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

Dr Reddy Stock infographics - peers
StockPE RatioPB RatioDividend Yield
Dr Reddy’s Laboratories Ltd39.094.320.54%
Sun pharmaceuticals Industries Ltd64.363.780.96%
Cipla Ltd29.973.880.56%
Gland Pharmas Ltd57.849.77
  • 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

Dr Reddy stock infographics - shareholding

Promoter Holdings Trend

Total Promoter Holding

In last 6 months, promoter holding in the company has almost stayed constant

Low Pledged Promoter Holding

Pledged promoter holdings is insignificant

Institutional Holdings Trend

Mutual Fund Holding

In last 3 months, mutual fund holding of the company has almost stayed constant

Decreased Foreign Institutional Holding

In last 3 months, foreign institutional holding of the company has decreased by 1.28%

InvestorsDec-18Mar-19Jun-19Sep-19Dec-19Mar-20Jun-20Sep-20Dec-20Mar-21Jun-21Sep-21
Promoters 26.7726.7726.7626.7626.7626.7526.7426.7426.7326.7426.7326.72
FIIs 29.6930.9330.7330.0530.0430.1529.3329.5829.1329.0329.0427.76
DIIs 15.9814.5313.7714.9915.114.3514.6413.9214.7314.915.7421.4
Public 27.4327.6428.527.9727.8728.5129.0629.5329.1928.9928.1723.83
Others 0.120.130.240.240.240.240.220.230.220.350.320.29

Dividend of Dr Reddy

Dr Reddy stock infographics - Dividend
Cash DividendDividend/ShareEx Date
Final₹25.009-Jul-21
Cash DividendDividend/ShareEx Date
Final₹25.0013-Jul-20
Cash DividendDividend/ShareEx Date
Final₹20.0015-Jul-19
Cash DividendDividend/ShareEx Date
Final₹20.0016-Jul-18
Cash DividendDividend/ShareEx Date
Final₹20.0017-Jul-17

Dividend Trend

No Dividend Cuts

DR REDDY has increased or maintained dividend levels over the last 5 years

Dividend Yield

The current dividend yield is 0.54%. An investment of ₹1,000 in the stock is expected to generate a dividend of ₹5.45 every year

Read more about dividend and dividend yield with infographics

Strength and Limitations

Strength

  • The company has shown a good profit growth of 56.82% for the Past 3 years.
  • Company is virtually debt free.
  • Company has a healthy Interest coverage ratio of 66.44.
  • Company has a healthy liquidity position with current ratio of 2.40.
  • The company has a good cash flow management; CFO/PAT stands at 1.28.
  • The company has a strong degree of Operating leverage, Average Operating leverage stands at 5.25.

Limitations

The company has shown a poor revenue growth of 12.56% for the Past 3 years.

Expert Forecast

Dr Reddy Stock infographics - Expert forecast

The stock forecast of Dr Reddy stock for the year 2022

HIGH

Rs. 7308

MEDIAN

Rs. 5299

LOW

Rs. 4489

Future stock price targets of Dr Reddy stock

Target of Dr ReddyFuture Stock Price
20227200 to 7400
202512000 to 14500
203020000 to 22500
203530000 to 42000
204055000 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

Dr Reddy stock infographics - 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 MarutiFuture Investments
After 1 yearRs.494000
5 yearRs.665107
10 yearRs.963762
15 yearRs.1396765
20 yearRs.2023610
25 yearRs.2932729
Future values are calculated using 8.3% CAGR (Dr Reddy)

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 RatioSector PEPB RatioSector PBDividend YieldSector Div Yld
39.0937.894.325.050.54%0.68%

Check Dr Reddy on NSE

Frequently Asked Questions

Que: What is a Dr Reddy share price target of 2022?

Ans: As Per expert and looking at the fundamentals of Dr Reddy lab, the share could touch 7000 in the year 2022.

Que: What is a Dr Reddy share price target of 2025?

Ans: As Per expert and looking at the fundamentals of Dr Reddy lab, the share could touch 12000 in the year 2025.

Que: What is a Dr Reddy share price target of 2030?

Ans: As Per expert and looking at the fundamentals of Dr Reddy lab. If the stock continues its fundamental run in future then it could touch 20000 in the year 2030.

Que: Can we buy Dr Reddy share?

Ans: Whenever the stock dips investors can buy this stock. By this way you can get the share at a good price.

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