Company Analysis Dr. Reddy's Laboratories Limited
1. Summary
Advantages
- Price (1128.15 βΉ) is less than fair price (1339.17 βΉ)
- Current debt level 5.17% is below 100% and has decreased over 5 years from 16.78%.
- The company's current efficiency (ROE=21.69%) is higher than the sector average (ROE=10.72%)
Disadvantages
- Dividends (3.14%) are below the sector average (9.47%).
- The stock's return over the last year (-9.08%) is lower than the sector average (5.93%).
Similar companies
2. Share price and performance
2.1. Share price
2.2. News
2.3. Market efficiency
| Dr. Reddy's Laboratories Limited | Healthcare | Index | |
|---|---|---|---|
| 7 days | -4% | -1.7% | -1.8% |
| 90 days | -6% | -11.1% | -9.6% |
| 1 year | -9.1% | 5.9% | 0.8% |
DRREDDY vs Sector: Dr. Reddy's Laboratories Limited has significantly underperformed the "Healthcare" sector by -15.01% over the past year.
DRREDDY vs Market: Dr. Reddy's Laboratories Limited has significantly underperformed the market by -9.89% over the past year.
Stable price: DRREDDY is not significantly more volatile than the rest of the market on "National Stock Exchange Of India" over the last 3 months, with typical variations of +/- 5% per week.
Long period: DRREDDY with weekly volatility of -0.1747% over the past year.
3. Summary of the report
4. Fundamental Analysis
4.1. Stock price and price forecast
Below fair price: The current price (1128.15 βΉ) is lower than the fair price (1339.17 βΉ).
Price not significantly lower than the fair price: The current price (1128.15 βΉ) is slightly lower than the fair price by 18.7%.
4.2. P/E
P/E vs Sector: The company's P/E (18.61) is lower than that of the sector as a whole (59.75).
P/E vs Market: The company's P/E (18.61) is lower than that of the market as a whole (64.67).
4.2.1 P/E Similar companies
4.3. P/BV
P/BV vs Sector: The company's P/BV (3.69) is lower than that of the sector as a whole (6.66).
P/BV vs Market: The company's P/BV (3.69) is lower than that of the market as a whole (6.36).
4.3.1 P/BV Similar companies
4.4. P/S
P/S vs Sector: The company's P/S indicator (3.71) is lower than that of the sector as a whole (9.35).
P/S vs Market: The company's P/S indicator (3.71) is lower than that of the market as a whole (18.79).
4.4.1 P/S Similar companies
4.5. EV/Ebitda
EV/Ebitda vs Sector: The company's EV/Ebitda (11.88) is lower than that of the sector as a whole (141.69).
EV/Ebitda vs Market: The company's EV/Ebitda (11.88) is lower than that of the market as a whole (34.46).
5. Profitability
5.1. Profitability and revenue
5.2. Earnings per share - EPS
5.3. Past profitability Net Income
Yield Trend: Rising and has grown by 37.12% over the last 5 years.
Earnings Slowdown: The last year's return (0%) is below the 5-year average return (37.12%).
Profitability vs Sector: The return for the last year (0%) exceeds the return for the sector (-4.48%).
5.4. ROE
ROE vs Sector: The company's ROE (21.69%) is higher than that of the sector as a whole (10.72%).
ROE vs Market: The company's ROE (21.69%) is higher than that of the market as a whole (3.59%).
5.5. ROA
ROA vs Sector: The company's ROA (15.68%) is higher than that of the sector as a whole (7.64%).
ROA vs Market: The company's ROA (15.68%) is higher than that of the market as a whole (7.91%).
5.6. ROIC
ROIC vs Sector: The company's ROIC (20.99%) is higher than that of the sector as a whole (15.91%).
ROIC vs Market: The company's ROIC (20.99%) is higher than that of the market as a whole (15.54%).
7. Dividends
7.1. Dividend yield vs Market
Low yield: The dividend yield of the company 3.14% is below the average for the sector '9.47%.
7.2. Stability and increase in payments
Dividend stability: The company's dividend yield 3.14% has been steadily paid over the past 7 years, DSI=0.93.
Weak dividend growth: The company's dividend yield 3.14% has been growing weakly or stagnant over the past 5 years. Growth over only 1 year.
7.3. Payout percentage
Dividend Coverage: Current payments from income (11.94%) are at an uncomfortable level.
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