Dr Reddy share is good or bad –  Analysts have suggested that investors can buy this stock as company is showing good signs of profitability & efficiency.

Please note that Investments in securities market are subject to market risk, read all the related documents carefully before investing.

If you are planning to invest, please go through our details analysis and accordingly you can make your decision.

Current Business

Dr Reddy Laboratories is an Indian multinational pharmaceutical company based in Hyderabad. The company produces over 190 medications, 60 active pharmaceutical ingredients (APIs) for drug manufacture, diagnostic kits, critical care, and biotechnology.

Dr Reddy -Need in Market

The market revenues also show an historic growth worldwide motivated by the increase on the drug demand. The market has been growing, COVID-19 pandemic has modified and will continue modifying the pharmaceutical market and in the coming years in terms of revenues and investment.

Dr. Reddy’s Share -Current Price

Dr Reddy share price – ₹5,587.60 ( as on 13th Dec 2023)

Dr Reddy -The Debt to Equity Ratio is a company’s total liabilities divided by its shareholder equity. It’s the degree to which a company is financing its operations through debt v/s wholly owned funds. Over the last 5 years, debt to equity ratio has been 16.42%, vs industry avg of 28.94% which is lower than the Industry debt to Equity ratio.

Dr Reddy-Current Ratio – Over the last 5 years, current ratio has been 192.59%, vs industry avg of 179.98% which is higher than Industry current ratio

Dr Reddy-Revenue Growth – Over the last 5 years, revenue has grown at a yearly rate of 12.28%, vs industry avg of 8.45%.

Dr Reddy -Net Income Growth – Over the last 5 years, net income has grown at a yearly rate of 36.63%, vs industry avg of 9.82%

Dr Reddy-Market Share – Over the last 5 years, market share increased from 7.11% to 8.07%

Financial Year        FY 2018     FY 2019     FY 2020     FY 2021     FY 2022      FY 2023
Total Revenue       14,436.20  15,829.50  18,193.70  19,386.90  22,099.90  25,762.20

Financial Year        FY 2018     FY 2019      FY 2020     FY 2021    FY 2022      FY 2023
Total Assets           22,349.30  22,418.30  23,223.30  26,587.90 29,745.50   32,209.10

Financial Year        FY 2018     FY 2019      FY 2020     FY 2021   FY 2022       FY 2023
Total Liabilities      9,777.70    8,394.70     7,624.50    8,946.20  10,533.10    8,923.00

Dr Reddy- Cash Flow Growth – Over the last 5 years, free cash flow growth has been 41.77%, vs industry avg of 30.03%

Financial Year        FY 2018     FY 2019      FY 2020      FY 2021    FY 2022      FY 2023
Free Cash Flow      698.70       2,032.80     2,372.60     2,314.20   905.90        4,000.90

Dr Reddy-Dividend Yield – Current Dividend Yield (Dividend Per Share) is 0.72% – An investment of ₹1,000 in the stock is expected to generate dividend of ₹7.31 every year. DRREDDY has increased or maintained dividend levels over the last 5 years.

Dr Reddy-Shareholding Pattern

Total Promoter Holding -26.66%  (Pledged promoter holdings is insignificant) 

Mutual Funds- Reduced from 14.21% to 8.61%

Other Domestic Institutions- 12.43%

Foreign Institutions- Incresed from 25.87% to 42.21%

Retail and Others- Reduced from 22.24% to 10.09%

Things to keep in mind while choosing Stocks

• Lower pledged promoter holdings is considered better.

• Price to Earning Ratio - PE Ratio ( If PE ratio is less than it is good indicator to buy) .

• Current PE Ratio - ( recommended only if PE Ratio is less than 20).

• Price to Book Value - PB Ratio ( If PB ratio is less than it is good indicator to buy)

• Debt to Equity Ratio - Debt Ratio (If Debt to Equity ratio is less than it is good indicator to buy)

• Current Ratio (Current Assets upon Current liabilities) -If Current ratio is higher than it is good indicator to buy)

• Total Assets year on year ( it should increase)

• Total Liabilities year on year ( it should reduce)

• Cashflow – year on year ( it should increase)

FAQ (Frequently asked question related to Dr. Reddy’s Laboratories.

What is the target of Dr. Reddy’s shares for 2023?

Is it the right time to buy 100 shares of Dr. Reddy’s?

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Why invest in Dr. Reddy’s Laboratories?