ScoreWhy is Dr Reddys Laboratories Ltd ?
1
High Management Efficiency with a high ROE of 15.68%
2
The company is Net-Debt Free
3
Healthy long term growth as Net Sales has grown by an annual rate of 12.09%
4
With a fall in Net Sales of -13.79%, the company declared Very Negative results in Mar 26
- The company has declared negative results for the last 3 consecutive quarters
- OPERATING PROFIT TO INTEREST(Q) Lowest at 3.62 times
- ROCE(HY) Lowest at 12.64%
- PAT(Q) Lowest at Rs 220.90 cr.
5
With ROE of 11.1, it has a Fair valuation with a 2.9 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 6.79%, its profits have fallen by -25.8%
6
High Institutional Holdings at 63.8%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
7
Market Beating performance in long term as well as near term
- Along with generating 6.79% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Dr Reddy's Labs should be less than 10%
- Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Dr Reddy's Labs for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Dr Reddy's Labs
6.79%
0.30
22.96%
Sensex
-6.84%
-0.53
12.96%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
12.09%
EBIT Growth (5y)
10.72%
EBIT to Interest (avg)
27.20
Debt to EBITDA (avg)
0.58
Net Debt to Equity (avg)
0.01
Sales to Capital Employed (avg)
0.91
Tax Ratio
22.90%
Dividend Payout Ratio
11.80%
Pledged Shares
0
Institutional Holding
63.80%
ROCE (avg)
20.11%
ROE (avg)
15.68%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
26
Industry P/E
35
Price to Book Value
2.88
EV to EBIT
24.98
EV to EBITDA
17.01
EV to Capital Employed
2.85
EV to Sales
3.26
PEG Ratio
NA
Dividend Yield
0.61%
ROCE (Latest)
11.43%
ROE (Latest)
11.07%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend1What is working for the Company
NO KEY POSITIVE TRIGGERS
-32What is not working for the Company
OPERATING PROFIT TO INTEREST(Q)
Lowest at 3.62 times
ROCE(HY)
Lowest at 12.64%
PAT(Q)
Lowest at Rs 220.90 cr.
DEBT-EQUITY RATIO(HY)
Highest at 0.20 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.32 times
NET SALES(Q)
Lowest at Rs 7,546.40 cr
INTEREST(Q)
Highest at Rs 105.70 cr
PBDIT(Q)
Lowest at Rs 382.50 cr.
OPERATING PROFIT TO NET SALES (Q)
Lowest at 5.07%
PBT LESS OI(Q)
Lowest at Rs -275.70 cr.
NON-OPERATING INCOME(Q)
is 238.06 % of Profit Before Tax (PBT
EPS(Q)
Lowest at Rs 2.65
Loading Valuation Snapshot...
Here's what is not working for Dr Reddy's Labs
Operating Profit to Interest - Quarterly
Lowest at 3.62 times and Fallen
each quarter in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs -275.70 cr has Fallen at -119.0% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 1,448.28 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 220.90 cr has Fallen at -84.1% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 1,392.10 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Net Sales - Quarterly
At Rs 7,546.40 cr has Fallen at -13.0% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 8,670.55 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Profit After Tax (PAT) - Quarterly
Lowest at Rs 220.90 cr. and Fallen
each quarter in the last five quartersMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Net Sales - Quarterly
Lowest at Rs 7,546.40 cr
in the last five quartersMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Interest - Quarterly
Highest at Rs 105.70 cr
in the last five quarters and Increased by 11.97 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 382.50 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 5.07%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs -275.70 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Non Operating Income - Quarterly
is 238.06 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Earnings per Share (EPS) - Quarterly
Lowest at Rs 2.65
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
Debt-Equity Ratio - Half Yearly
Highest at 0.20 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio- Half Yearly
Lowest at 3.32 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
