Dr. Reddy's Laboratories

NYSE
RDY
Stock
Yield per half year: +16.84%
Dividend yield: 0.6138%
Sector: Healthcare

Company Analysis Dr. Reddy's Laboratories

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1. Summary

Advantages

  • Price (16.17 $) is less than fair price (30.45 $)
  • The stock's return over the last year (-2.85%) is higher than the sector average (-47.17%).
  • 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=-83.32%)

Disadvantages

  • Dividends (0.6138%) are below the sector average (1.28%).

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2. Share price and performance

2.1. Share price

2.3. Market efficiency

Dr. Reddy's Laboratories Healthcare Index
7 days 4% -7.3% 0.6%
90 days 24.2% -45.3% 19.2%
1 year -2.8% -47.2% 14.2%

RDY vs Sector: Dr. Reddy's Laboratories has outperformed the "Healthcare" sector by 44.32% over the past year.

RDY vs Market: Dr. Reddy's Laboratories has significantly underperformed the market by -17.01% over the past year.

Stable price: RDY is not significantly more volatile than the rest of the market on "New York Stock Exchange" over the last 3 months, with typical variations of +/- 5% per week.

Long period: RDY with weekly volatility of -0.0548% over the past year.

3. Summary of the report

3.1. General

P/E: 18.33
P/S: 3.66

3.2. Revenue

EPS 66.8
ROE 21.69%
ROA 15.68%
ROIC 20.99%
Ebitda margin 31.67%

4. Fundamental Analysis

4.1. Stock price and price forecast

The fair price is calculated taking into account the Central Bank refinancing rate and earnings per share (EPS)

Below fair price: The current price (16.17 $) is lower than the fair price (30.45 $).

Price significantly below the fair price: The current price (16.17 $) is 88.3% lower than the fair price.

4.2. P/E

P/E vs Sector: The company's P/E (18.33) is lower than that of the sector as a whole (52.65).

P/E vs Market: The company's P/E (18.33) is lower than that of the market as a whole (61.8).

4.2.1 P/E Similar companies

4.3. P/BV

P/BV vs Sector: The company's P/BV (3.64) is lower than that of the sector as a whole (10.87).

P/BV vs Market: The company's P/BV (3.64) is lower than that of the market as a whole (20.58).

4.3.1 P/BV Similar companies

4.4. P/S

P/S vs Sector: The company's P/S indicator (3.66) is lower than that of the sector as a whole (4.03).

P/S vs Market: The company's P/S indicator (3.66) is lower than that of the market as a whole (15.97).

4.4.1 P/S Similar companies

4.5. EV/Ebitda

EV/Ebitda vs Sector: The company's EV/Ebitda (11.69) is lower than that of the sector as a whole (16.12).

EV/Ebitda vs Market: The company's EV/Ebitda (11.69) is lower than that of the market as a whole (18.72).

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 (-8.87%).

5.4. ROE

ROE vs Sector: The company's ROE (21.69%) is higher than that of the sector as a whole (-83.32%).

ROE vs Market: The company's ROE (21.69%) is lower than that of the market as a whole (42.63%).

5.5. ROA

ROA vs Sector: The company's ROA (15.68%) is higher than that of the sector as a whole (6.38%).

ROA vs Market: The company's ROA (15.68%) is lower than that of the market as a whole (23.26%).

5.6. ROIC

ROIC vs Sector: The company's ROIC (20.99%) is higher than that of the sector as a whole (15.06%).

ROIC vs Market: The company's ROIC (20.99%) is higher than that of the market as a whole (9.17%).

6. Finance

6.1. Assets and debt

Debt level: (5.17%) is quite low in relation to assets.

Debt reduction: over 5 years, the debt has decreased from 16.78% to 5.17%.

Debt Covering: The debt is covered by 35.95% from net profit.

6.2. Profit growth and share price

7. Dividends

7.1. Dividend yield vs Market

Low yield: The dividend yield of the company 0.6138% is below the average for the sector '1.28%.

7.2. Stability and increase in payments

Dividend stability: The company's dividend yield 0.6138% has been steadily paid over the past 7 years, DSI=0.93.

Weak dividend growth: The company's dividend yield 0.6138% 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.

8. Insider trades

8.1. Insider trading

Insider Buying Exceeds insider sales by 100% over the last 3 months.

8.2. Latest transactions

No insider transactions have been recorded yet

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9. Stocks forum Dr. Reddy's Laboratories

9.3. Comments