Company Valuation: Dr. Reddy's Laboratories Limited

Data adjusted to current consolidation scope
Fiscal Period: March 2021 2022 2023 2024 2025 2026 2027 2028
Capitalization 1 7,49,317 7,14,500 7,67,655 10,24,969 9,53,168 11,13,139 - -
Change - -4.65% 7.44% 33.52% -7.01% 16.78% - -
Enterprise Value (EV) 1 7,45,052 7,03,980 7,19,330 9,60,383 9,28,633 10,84,358 10,75,153 10,52,619
Change - -5.51% 2.18% 33.51% -3.31% 16.77% -0.85% -2.1%
P/E ratio 39.2x 30.4x 17.1x 18.4x 16.9x 24.4x 25.3x 20.7x
PBR 4.29x 3.76x 3.33x 3.63x 2.86x 2.96x 2.68x 2.42x
PEG - 1.3x 0.2x 0.8x 13.12x -1x -1.9x 0.9x
Capitalization / Revenue 3.95x 3.33x 3.11x 3.67x 2.93x 3.11x 3.12x 2.83x
EV / Revenue 3.93x 3.28x 2.92x 3.44x 2.85x 3.16x 3.01x 2.67x
EV / EBITDA 15.7x 13.7x 11.1x 12.1x 10.8x 13.8x 14.7x 12.2x
EV / EBIT 23.3x 20.5x 13.8x 14.8x 13.4x 18.2x 21x 16.3x
EV / FCF 28.7x 52.3x 15.1x 33.1x 49.1x 25.9x 25.2x 26.8x
FCF Yield 3.48% 1.91% 6.61% 3.02% 2.04% 3.85% 3.96% 3.73%
Dividend per Share 2 5 6 8 8 8 8.08 7.486 8.229
Rate of return 0.55% 0.7% 0.87% 0.65% 0.7% 0.6% 0.56% 0.62%
EPS 2 23.03 28.34 54.18 66.92 67.78 51.42 52.83 64.58
Distribution rate 21.7% 21.2% 14.8% 12% 11.8% 13.2% 14.2% 12.7%
Net sales 1 1,89,722 2,14,391 2,46,697 2,79,164 3,25,535 3,35,933 3,57,047 3,93,689
EBITDA 1 47,480 51,400 64,559 79,481 86,236 67,048 73,052 86,274
EBIT 1 31,977 34,277 52,057 64,781 69,178 46,443 51,169 64,537
Net income 1 19,149 23,568 45,073 55,779 56,544 42,850 44,349 54,460
Net Debt 1 -4,265 -10,520 -48,325 -64,586 -24,535 -28,781 -37,986 -60,520
Reference price 2 903.12 861.08 924.30 1,231.03 1,144.05 1,336.95 1,336.95 1,336.95
Nbr of stocks (in thousands) 8,29,699 8,29,771 8,30,526 8,32,611 8,33,152 8,32,596 - -
Announcement Date 14/05/21 19/05/22 10/05/23 07/05/24 09/05/25 12/05/26 - -
1INR in Million2INR
Estimates

P/E ratio, Detailed evolution

P/E (Y) EV / Sales (Y) EV / EBITDA (Y) Dividend Yield (Y) Capi.($)
21.85x3.16x13.83x0.6% 1.16TCr
29.49x10.7x22.09x0.68% 90TCr
24.23x5.59x15.19x2.35% 55TCr
25.6x6.33x12.92x3.26% 37TCr
17.06x4.28x10.53x3.11% 33TCr
20.47x5.52x13.41x3.03% 28TCr
22.87x4.75x13.5x1.84% 28TCr
49.69x4.66x18.94x2.99% 28TCr
13.55x4.96x10.13x3.73% 21TCr
21.22x5.75x10.04x3.09% 18TCr
Average 24.60x 5.57x 14.06x 2.47% 33.75TCr
Weighted average by Cap. 25.91x 6.71x 15.75x 2.26%

Y-o-Y evolution of P/E

Historical PBR trend

Evolution Enterprise Value / Sales

Change in Enterprise Value/EBITDA

Year-on-year evolution of the Yield

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