Dr Reddys Laboratories Ltd

About

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

Key Points

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.[1]
Top revenue contributors of the segment are nervous system drugs (19%), gastrointestinal (14%) & oncology (13%).[2]

See full details
  • Market Cap 82,512 Cr.
  • Current Price 4,959
  • High / Low 5,615 / 4,135
  • Stock P/E 47.5
  • Book Value 1,072
  • Dividend Yield 0.50 %
  • ROCE 15.4 %
  • ROE 11.7 %
  • Face Value 5.00

Pros

  • Company has been maintaining a healthy dividend payout of 19.62%

Cons

  • Stock is trading at 4.63 times its book value
  • The company has delivered a poor sales growth of 4.12% over past five years.
  • Company has a low return on equity of 12.97% for last 3 years.
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Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
3,818 3,865 4,030 3,858 4,813 4,397 4,449 4,426 4,911 4,942 4,768 4,945
3,058 3,060 3,211 3,116 3,749 4,686 3,500 3,305 3,755 4,403 3,715 4,211
Operating Profit 759 805 819 742 1,064 -289 949 1,121 1,156 539 1,053 734
OPM % 20% 21% 20% 19% 22% -7% 21% 25% 24% 11% 22% 15%
Other Income 139 111 99 446 66 85 84 95 58 86 100 124
Interest 21 24 24 30 30 15 23 23 25 19 30 19
Depreciation 279 290 287 289 313 287 274 292 316 311 309 284
Profit before tax 599 601 606 869 786 -506 736 900 873 295 815 556
Tax % 13% 17% 25% 22% -41% -6% -6% 34% 12% 91% 32% 32%
Net Profit 518 500 455 676 1,107 -538 781 595 772 28 557 380
EPS in Rs 31.21 30.13 27.42 40.73 66.62 -32.40 47.01 35.77 46.42 1.68 33.51 22.87

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 TTM
7,031 7,435 9,814 11,833 13,415 15,023 15,568 14,196 14,281 15,448 17,517 19,048 19,566
5,602 5,874 7,371 9,164 10,164 11,515 11,983 11,724 11,930 12,270 15,040 15,173 16,083
Operating Profit 1,429 1,561 2,444 2,669 3,251 3,508 3,585 2,472 2,351 3,178 2,477 3,874 3,483
OPM % 20% 21% 25% 23% 24% 23% 23% 17% 16% 21% 14% 20% 18%
Other Income -359 52 -7 146 170 260 295 172 155 381 670 335 369
Interest 38 32 114 100 127 108 83 63 79 89 98 97 93
Depreciation 413 398 518 550 648 760 939 1,027 1,077 1,135 1,163 1,229 1,220
Profit before tax 618 1,183 1,804 2,165 2,646 2,900 2,859 1,554 1,350 2,336 1,886 2,884 2,539
Tax % 43% 16% 28% 29% 26% 19% 26% 19% 32% 17% -7% 32%
Net Profit 352 999 1,301 1,527 1,963 2,336 2,131 1,292 947 1,950 2,026 1,952 1,737
EPS in Rs 20.82 59.02 76.72 89.90 115.41 137.13 124.88 77.96 57.07 117.42 121.92 117.35 104.48
Dividend Payout % 54% 19% 18% 17% 16% 15% 16% 26% 35% 17% 21% 21%
Compounded Sales Growth
10 Years:10%
5 Years:4%
3 Years:10%
TTM:8%
Compounded Profit Growth
10 Years:7%
5 Years:-1%
3 Years:30%
TTM:-11%
Stock Price CAGR
10 Years:13%
5 Years:10%
3 Years:25%
1 Year:-2%
Return on Equity
10 Years:16%
5 Years:11%
3 Years:13%
Last Year:12%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
84 85 85 85 85 85 85 83 83 83 83 83
Reserves 3,692 3,947 4,904 6,284 7,780 9,768 12,484 12,179 12,489 13,994 15,616 17,755
Borrowings 1,484 2,371 3,234 3,682 4,477 4,314 3,352 4,918 5,071 3,838 2,210 3,031
2,032 2,461 3,082 3,329 3,563 4,290 4,408 4,474 4,706 4,503 5,314 5,719
Total Liabilities 7,293 8,863 11,305 13,380 15,906 18,457 20,330 21,654 22,349 22,418 23,223 26,588
2,352 3,386 3,412 4,051 4,641 5,377 6,563 6,931 6,968 7,191 6,850 8,206
CWIP 762 575 708 565 639 529 772 3,324 3,470 2,934 1,535 1,565
Investments 358 1 208 197 1,067 2,248 3,833 2,110 2,298 2,587 2,678 2,808
3,820 4,902 6,977 8,567 9,559 10,303 9,162 9,290 9,612 9,707 12,160 14,009
Total Assets 7,293 8,863 11,305 13,380 15,906 18,457 20,330 21,654 22,349 22,418 23,223 26,588

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
1,315 755 1,613 1,378 1,970 2,524 3,263 2,144 1,803 2,870 2,984 3,570
-686 -885 -971 -1,437 -1,604 -2,370 -1,610 -1,890 -1,483 -769 -495 -2,255
-532 44 389 -157 -24 -433 -1,700 -369 -444 -2,133 -2,516 -30
Net Cash Flow 98 -85 1,031 -216 342 -280 -47 -114 -124 -31 -27 1,286

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Debtor Days 60 86 94 98 90 100 97 98 104 94 105 95
Inventory Days 237 288 282 229 271 248 248 282 263 273 230 273
Days Payable 295 114 110 102 100 84 88 104 121 111 100 109
Cash Conversion Cycle 2 260 267 225 261 264 257 275 246 256 235 259
Working Capital Days 59 92 81 95 97 96 88 98 104 103 102 103
ROCE % 21% 20% 28% 25% 25% 22% 19% 9% 8% 13% 11% 15%

Shareholding Pattern

Numbers in percentages

Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
26.77 26.77 26.77 26.76 26.76 26.76 26.75 26.74 26.74 26.73 26.74 26.73
26.82 29.69 30.93 30.73 30.05 30.04 30.15 29.33 29.58 29.13 29.03 29.04
17.84 15.98 14.53 13.77 14.99 15.10 14.35 14.64 13.92 14.73 14.90 15.74
28.57 27.43 27.64 28.50 27.97 27.87 28.51 29.06 29.53 29.19 28.99 28.17
0.00 0.12 0.13 0.24 0.24 0.24 0.24 0.22 0.23 0.22 0.35 0.32

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