ScoreWhy is Dr Reddys Laboratories Ltd ?
1
Low Debt Company with Strong Long Term Fundamental Strength
- Healthy long term growth as Net Sales has grown by an annual rate of 13.12% and Operating profit at 18.90%
- Company has a low Debt to Equity ratio (avg) at 0.01 times
- The company has been able to generate a Return on Equity (avg) of 15.78% signifying high profitability per unit of shareholders funds
2
Negative results in Dec 25
- ROCE(HY) Lowest at 18.75%
- PBT LESS OI(Q) At Rs 1,274.40 cr has Fallen at -18.3% (vs previous 4Q average)
- PAT(Q) At Rs 1,209.90 cr has Fallen at -16.2% (vs previous 4Q average)
3
With ROE of 16, it has a Attractive valuation with a 3 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 8.80%, its profits have risen by 3.7% ; the PEG ratio of the company is 5.3
4
High Institutional Holdings at 63.64%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
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?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Dr Reddy's Labs
8.8%
0.43
20.56%
Sensex
-1.65%
-0.13
12.27%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
13.12%
EBIT Growth (5y)
18.90%
EBIT to Interest (avg)
29.48
Debt to EBITDA (avg)
0.54
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0.93
Tax Ratio
23.27%
Dividend Payout Ratio
11.80%
Pledged Shares
0
Institutional Holding
63.64%
ROCE (avg)
20.50%
ROE (avg)
15.78%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
19
Industry P/E
32
Price to Book Value
2.95
EV to EBIT
17.39
EV to EBITDA
13.17
EV to Capital Employed
2.96
EV to Sales
3.07
PEG Ratio
5.26
Dividend Yield
0.63%
ROCE (Latest)
18.24%
ROE (Latest)
16.03%
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
Mildly Bearish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend1What is working for the Company
NO KEY POSITIVE TRIGGERS
-12What is not working for the Company
ROCE(HY)
Lowest at 18.75%
PBT LESS OI(Q)
At Rs 1,274.40 cr has Fallen at -18.3% (vs previous 4Q average
PAT(Q)
At Rs 1,209.90 cr has Fallen at -16.2% (vs previous 4Q average
PBDIT(Q)
Lowest at Rs 1,887.50 cr.
OPERATING PROFIT TO NET SALES (Q)
Lowest at 21.56%
EPS(Q)
Lowest at Rs 14.49
Loading Valuation Snapshot...
Here's what is not working for Dr Reddy's Labs
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 1,274.40 cr has Fallen at -18.3% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 1,560.70 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 1,209.90 cr has Fallen at -16.2% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 1,443.05 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 1,887.50 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 21.56%
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 1,274.40 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs 14.49
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
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