Now trading at a price of $15.54, Dr. Reddy's Laboratories Ltd has moved 0.0% so far today.
Dr. Reddy's Laboratories Ltd returned gains of 8.8% last year, with its stock price reaching a high of $16.89 and a low of $12.26. Over the same period, the stock underperformed the S&P 500 index by -2.3%. The company's 50-day average price was $13.8. Dr. Reddy's Laboratories Limited, together with its subsidiaries, operates as an integrated pharmaceutical company worldwide. The Large-Cap Health Care company is headquartered in Hyderabad, India. Dr. Reddy's Laboratories Ltd has offered a 51.5% dividend yield over the last 12 months.
Generally Positive Cash Flows but Similar Gross Margins to the Industry Average of 57.85%:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $2,225 | $2,316 | $2,594 | $2,826 | $2,992 | $3,350 |
| Gross Margins | 54% | 54% | 54% | 53% | 56% | 59% |
| Net Margins | 12% | 11% | 9% | 11% | 18% | 20% |
| Net Income (M) | $272 | $259 | $236 | $311 | $548 | $668 |
| Net Interest Expense (M) | $889 | $983 | $970 | $958 | $1,428 | $1,711 |
| Depreciation & Amort. (M) | $176 | $165 | $175 | $156 | $154 | $178 |
| Diluted Shares (M) | 166 | 166 | 166 | 166 | 167 | 167 |
| Earnings Per Share | $1.64 | $1.56 | $1.52 | $1.87 | $3.3 | $4.01 |
| EPS Growth | n/a | -4.878048780487796% | -2.5641025641025665% | 23.02631578947369% | 76.4705882352941% | 21.515151515151516% |
| Free Cash Flow (M) | $314 | $379 | $355 | $177 | $578 | $545 |
| CAPEX (M) | $101 | $17 | $133 | $193 | $138 | n/a |
| Total Debt (M) | $318 | $17 | $86 | $76 | $16 | $72 |
| Net Debt / EBITDA | 0.6 | -0.03 | -0.23 | -0.22 | -0.06 | -0.01 |
| Current Ratio | 1.92 | 1.79 | 1.78 | 1.93 | 2.41 | 2.58 |
Dr. Reddy's Laboratories Ltd has generally positive cash flows and an excellent current ratio of 2.58. Additionally, the company's financial statements display a strong EPS growth trend and healthy leverage levels. Furthermore, Dr. Reddy's Laboratories Ltd has similar gross margins to its peers.
Dr. Reddy's Laboratories Ltd Is Potentially Undervalued and Its Shares Are Discounted:
Dr. Reddy's Laboratories Ltd has a trailing twelve month P/E ratio of 17.5, compared to an average of 22.94 for the Health Care sector. Based on its EPS guidance of $0.87, the company has a forward P/E ratio of 15.9. The -8.7% compound average growth rate of Dr. Reddy's Laboratories Ltd's historical and projected earnings per share yields a PEG ratio of -2.02. This indicates that its shares are overvalued.In contrast, the market is likely undervaluing Dr. Reddy's Laboratories Ltd in terms of its equity because its P/B ratio is 0.04 while the sector average is 3.19. The company's shares are currently trading -63.6% above their Graham number.
Dr. Reddy's Laboratories Ltd Has an Average Rating of Buy:
The 4 analysts following Dr. Reddy's Laboratories Ltd have set target prices ranging from $11.864158 to $17.133184 per share, for an average of $14.97 with a buy rating. The company is trading 3.8% away from its average target price, indicating that there is an analyst consensus of little upside potential.
Dr. Reddy's Laboratories Ltd has an average amount of shares sold short because 2.5% of the company's shares are sold short. Institutions own 13.8% of the company's shares, and the insider ownership rate stands at 0.0%, suggesting a small amount of insider investors. The largest shareholder is Robeco Institutional Asset Management B.V., whose 1% stake in the company is worth $166,399,049.
