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Dr Reddys Laboratories Ltd P/E Ratio

Dr Reddys Laboratories Ltd P/E Ratio

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Dr Reddys Laboratories Ltd

NSE: DRREDDY

PE

17.7

Last updated : 23 May 12:27 PM

Key Highlights

    The P/E Ratio of Dr Reddys Laboratories Ltd is 17.7 as of 23 May 12:27 PM .a1#The P/E Ratio of Dr Reddys Laboratories Ltd changed from 23.6 on March 2019 to 17.1 on March 2023 . This represents a CAGR of -6.24% over 5 years. a1#The Latest Trading Price of Dr Reddys Laboratories Ltd is ₹ 5846 as of 23 May 09:24 .a1#The PE Ratio of Pharmaceuticals Industry has changed from 28.7 to 27.7 in 5 years. This represents a CAGR of -0.71%a1# The PE Ratio of Automobile industry is 27.2. The PE Ratio of Finance industry is 13.6. The PE Ratio of IT - Software industry is 27.9. The PE Ratio of Pharmaceuticals industry is 27.7. The PE Ratio of Retail industry is 153.5. The PE Ratio of Textiles industry is 21.1. In 2023a1#The Market Cap of Dr Reddys Laboratories Ltd changed from ₹ 46069 crore on March 2019 to ₹ 76960 crore on March 2023 . This represents a CAGR of 10.81% over 5 years. a1#The Revenue of Dr Reddys Laboratories Ltd changed from ₹ 6096 crore to ₹ 7314 crore over 8 quarters. This represents a CAGR of 9.54% a1#The EBITDA of Dr Reddys Laboratories Ltd changed from ₹ 1804 crore to ₹ 2032 crore over 8 quarters. This represents a CAGR of 6.12% a1#The Net Profit of Dr Reddys Laboratories Ltd changed from ₹ 1189 crore to ₹ 1309 crore over 8 quarters. This represents a CAGR of 4.96% a1#The Dividend Payout of Dr Reddys Laboratories Ltd changed from 25.99 % on March 2019 to 25.51 % on March 2023 . This represents a CAGR of -0.37% over 5 years. a1#

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P/E Ratio Over Time

The price-to-earnings ratio (P/E ratio) is a valuation measure calculated by dividing a company's current share price by its earnings per share. P/E Ratio Formula P/E ratio = (CMP of share/ Earning per share) Types of Price to Earning Ratio 1. Forward P/E ratio: It is calculated by simply dividing the price of a single unit of a company along with the estimated earnings of a company derived from its future earning guidance. 2. Trailing P/E ratio: It is the most common metric used by investors where past earnings of a company over a period are considered.

P/E Ratio Over Time

Period
Mar '1923.6
Mar '2025.6
Mar '2138.5
Mar '2232.8
Mar '2317.1

Fundamental Metrics

Market Cap

97,966 Cr

EPS

334.4

P/E Ratio (TTM) *

17.7

P/B Ratio (TTM) *

3.5

Day’s High

5900.0

Day’s Low

5835.2

DTE *

0.1

ROE *

19.7

52 Week High

6505.5

52 Week Low

4445.9

ROCE *

24.1

* All values are consolidated

* All values are consolidated

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Dr Reddys Laboratories Ltd

NSE: DRREDDY

PRICE

5846.1

-26.55(-0.45%)

stock direction

Last updated : 23 May 09:24

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PRICE

The current market price or CMP refers to the price at which the securities are trading in the share market. Current price in Over-the-counter costs: The following current price depends upon the bid price & the asking price when a financial asset is sold over-the-counter(OTC). Current Price in Bond Market: The current price of a bond is determined by measuring the actual interest rate against the bid-related interest rate. The par or the face value is then calculated to represent the remaining interest payments due which occur before the maturity of the bond.

Share price Over Time

1M

1Y

3Y

5Y

* All values are in Rupees

SWOT Analysis Of Dr Reddys Laboratories Ltd

Strength

1

S

Weakness

2

W

Opportunity

0

O

Threats

2

T

BlinkX Score for Dr Reddys Laboratories Ltd

Revenue

Profitability

Affordability

Liquidity

Dividend

Asset Value vs Market Value

Market Value

98,732

Asset Value

16,681

4.9 X

Value addition

* All values are in Rupees

PE Ratio Over Market Cap

Key Valuation Metric

Earnings

5,577 Cr

17.7 X

PE Ratio

Market Cap

₹98732Cr

PE Ratio

PS Ratio

PB Ratio

The price-to-earnings ratio (P/E ratio) is a valuation measure calculated by dividing a company's current share price by its earnings per share.


P/E Ratio Formula


P/E ratio = (CMP of share/ Earning per share)


Types of Price to Earning Ratio


1. Forward P/E ratio: It is calculated by simply dividing the price of a single unit of a company along with the estimated earnings of a company derived from its future earning guidance.
2. Trailing P/E ratio: It is the most common metric used by investors where past earnings of a company over a period are considered.

PE Ratio

PS Ratio

PB Ratio

Earnings

5,577 Cr

17.7 X

PE Ratio

Market Cap

₹98732Cr

PE Ratio

PS Ratio

PB Ratio

The price-to-earnings ratio (P/E ratio) is a valuation measure calculated by dividing a company's current share price by its earnings per share.


P/E Ratio Formula


P/E ratio = (CMP of share/ Earning per share)


Types of Price to Earning Ratio


1. Forward P/E ratio: It is calculated by simply dividing the price of a single unit of a company along with the estimated earnings of a company derived from its future earning guidance.
2. Trailing P/E ratio: It is the most common metric used by investors where past earnings of a company over a period are considered.

PE Ratio of Pharmaceuticals Industry over time

PE Ratio of Top Sectors

Dr Reddys Laboratories Ltd PE Ratio Calculation

  • The Price-to-Earnings (PE) ratio, also known as the P/E Ratio, is a fundamental financial metric used to assess the valuation of a company's stock in relation to its earnings performance. For Dr Reddys Laboratories Ltd, the PE Ratio is calculated as follows:

P/E Ratio

=

Market Capitalization

Net Income

  • Given the current market conditions, Dr Reddys Laboratories Ltd's Share Price stands at 5846.1. The Earnings per Share (Diluted) for the trailing twelve months (TTM) ending in 2024-05-23T09:24:00 is 334.37. Substituting the values into the formula, PE Ratio becomes as follows: PE Ratio = 5846.1/ 334.37= 17.7.

P/E Ratio

=

Stock Price

Earning Per Share

  • This indicates that Dr Reddys Laboratories Ltd's stock is trading at approximately 17.7 times its earnings per share for the trailing twelve months. Alternatively, the PE Ratio can also be computed using the company's overall financial performance: PE Ratio = Market Cap / Net Income. Where Market Cap represents the total market capitalization of the company, and Net Income signifies the total earnings after expenses and taxes.

Understanding Dr Reddys Laboratories Ltd’s PE Ratio (BSE: DRREDDY)

    The Price-to-Earnings (PE) ratio, used to assess Dr Reddys Laboratories Ltd's stock (BSE: DRREDDY), indicates how many years it would take for the company to earn back the stock price. If a company earns ₹2 per share annually and its stock trades at ₹30, the PE ratio is 15, signifying a 15-year payback period assuming steady earnings. Earnings fluctuate, affecting the payback period, Growing earnings shorten the recovery time while declining earnings extend it. Shareholders favor shorter payback periods, preferring lower PE stocks. Among stocks with the same PE ratio, faster-growing businesses are preferred. A company with losses makes the PE ratio meaningless. Peter Lynch introduced the PEG ratio to compare stocks with different growth rates, dividing the PE ratio by the growth rate. A company is considered fairly valued when its PE ratio matches its growth rate. The PE ratio, applicable across industries, measures stock valuation based on earnings power. It indicates how quickly an investment can be recouped. Unlike the PB ratio, which assesses valuation based on the balance sheet, the PE ratio focuses on earnings. Overall, the PE ratio provides insights into stock valuation, aligning with investors' preference for faster returns.

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Market Cap Over Time

Market Cap or market capitalisation refers to metrics that are used to measure a company's size. It is defined as the total market value of a company's outstanding shares of stock. Formula of Market Cap: Market Capital = N * P Here, N for the outstanding shares P refers to the closing price of the company's shares. Types of Companies based on Market Cap: - Small-Cap stocks: Up to 500 Crore - Mid-Cap Stocks: From Rs.500 crore up to Rs.7,000 crore - Large-Cap Stocks: From Rs.7,000 crore up to Rs.20,000 crore

Market Cap Over Time

Period
Mar '1946069
Mar '2051798
Mar '2175095
Mar '2271653
Mar '2376961

* All values are a in crore

×

Revenue Over Time

Revenue term means the amount of money a company earns from its primary business activities such as the sales of its products & services. Types of Revenue: 1. Operating revenue: It refers to the income generated from the core business activities, which are sales of goods or services rendered. 2. Non-Operating revenue: It is the income generated from secondary sources unrelated to the primary business. Examples include rents, dividends, interest, and royalty fees. Formula for Revenue: The formula for calculating revenue is based on two goods & services: For goods: Revenue = Avg unit price x Number of Units sold For services: Revenue = Avg unit price x Number of Customers served.

Revenue Over Time

Period
Jun '226096
Sep '226387
Dec '226855
Mar '226461
Jun '236936
Sep '237222
Dec '237456
Mar '237315

* All values are a in crore

×

EBITDA Over Time

PBIDT stands for Profit Before Interest, Depreciation, and Taxes. It is a financial metric that measures a company's profitability before accounting for interest expenses, depreciation of assets, and taxes. Formula to calculate PBIDT: PBIDT = Net Income + Interest + Depreciation + Taxes or PBIDT = Operating Income + Depreciation + Taxes PBIDT vs EBITDA vs EBIT vs EBT: Here is a brief explanation of the differences: - PBIDT (Profit Before Interest, Depreciation, and Taxes) includes taxes in its calculation, unlike EBITDA. - EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) excludes taxes and interest, focusing on operational performance. - EBIT (Earnings Before Interest and Taxes) excludes interest and taxes, providing a measure of core operational profitability. - EBT (Earnings Before Taxes) includes all operating income but does not account for interest expenses. Conclusion: PBIDT, similar to EBITDA, is a measure of operational profitability but includes taxes in its calculation.

EBITDA Over Time

Period
Jun '221805
Sep '221954
Dec '222003
Mar '221680
Jun '232240
Sep '232328
Dec '232242
Mar '232032

* All values are a in crore

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Net Profit Over Time

Net profit is the amount of money a company retains after accounting for all expenses, depreciation, interest, taxes, and other deductions. Net Profit formula is expressed as: Net Profit = Total Revenue - Total Expense Net Profit Margin Ratio: Net Profit Margin Ratio = Net Profit / Total Revenue

Net Profit Over Time

Period
Jun '221189
Sep '221114
Dec '221244
Mar '22960
Jun '231405
Sep '231482
Dec '231381
Mar '231310

* All values are a in crore

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Dividend Payout Over Time

Dividend payout refers to the total dividends paid to shareholders relative to the company's earnings. It is a financial measure that determines the percentage of earnings paid out to existing shareholders as dividends. How to calculate Dividend Payout Ratio? The dividend payout ratio formula is as follows: DPR = Dividends paid / Net earnings With the dividend payout ratio, you can understand the company's priorities. It is an important metric that allows you to easily check DPR online.

Dividend Payout Over Time

Period
Mar '1926
Mar '2014
Mar '2119
Mar '2231
Mar '2326

* All values are a in %

About Dr Reddys Laboratories Ltd

About Dr Reddys Laboratories Ltd

    Dr Reddy's Laboratories Ltd (DRL) is an integrated global pharmaceutical company, committed to providing affordable and innovative medicines for healthier lives. In the year 1993, the company established Dr. Reddy's Research Foundation and initiated drug discovery programme. In the year 2003, they launched Ibuprofen, first generic product to be marketed under the 'Dr. Reddy's' label in the US. During the year 2010-11, the company acquired GlaxoSmithKline's (GSK) oral penicillin manufacturing facility located in Tennessee, USA. During the year, the company launched Cresp in India, the first biosimilar darbepoetin alfa in the world. This action follows the earlier inspections of these sites by the agency in November 2014, January 2015 and February 2015 respectively. On 8 February 2017, Dr. Reddy's Laboratories Ltd announced the expansion of its commercial operations in Europe with the introduction of its portfolio of generics in France. It is intended to be used for the prevention of surgical site infections, following non-emergency, elective colorectal surgery. Under the terms of the agreement, Encore will be responsible for the commercialization of DFD-06 in the United States. This entire portfolio has been transferred to the Company, along with related sales and marketing teams, the manufacturing plant located in Baddi, Himachal Pradesh, and employees. Based on the forensic investigation, no evidence was found of any data breaches leading to personally identifiable information. As of March 31, 2022, there were 90 generic filings awaiting approval with the US Food and Drug Administration (USFDA), comprising 87 ANDAs and 3 NDAs. Dr. Reddy's (WUXI) Pharmaceutical Co. Limited in China ceased to be a step-down subsidiary of the Company with effect from December 13, 2021, consequent to its liquidation.

Dr Reddys Laboratories Ltd News Hub

News

Dr Reddy’s Lab Andhra Pradesh facility gets 2 USFDA observations

The drug regulator conducted good manufacturing practice (GMP) inspection at its formulati...

Read more

18 May 2024 08:33

News

Dr Reddys Laboratories AGM scheduled

Dr Reddys Laboratories announced that the 40th Annual General Meeting(AGM) of the company ...

Read more

07 May 2024 16:41

News

Board of Dr Reddys Laboratories recommends final dividend

Dr Reddys Laboratories announced that the Board of Directors of the Company at its meeting...

Read more

07 May 2024 16:41

News

Dr Reddy's Q4 PAT jumps 36% YoY to Rs 1,307 crore

The revenue growth was largely driven by growth in global generics revenues in North Ameri...

Read more

07 May 2024 17:26

News

Dr Reddy's Labs launches generic Oracea capsules in US markets

Oracea is a tetracycline antibiotic. It is used to treat blemishes, bumps, and acne-like l...

Read more

06 May 2024 09:29

News

Dr Reddy's launches Doxycycline Capsules in the US

Dr. Reddy's Laboratories announced its launch of Doxycycline Capsules, 40 mg in the U.S. m...

Read more

03 May 2024 15:50

Product Composition by Percentage (Revenue)

FAQs for PE of Dr Reddys Laboratories Ltd

What is Dr Reddys Laboratories Ltd current share price?

The current market price of Dr Reddys Laboratories Ltd as of May 23, 2024 is ₹5846.10.

Is Dr Reddys Laboratories Ltd a good investment?

As per BlinkX Score Dr Reddys Laboratories Ltd scores 44 in Revenue, 21 in Profitability. However it's advisable to conduct comprehensive research or seek advice from experts to evaluate whether it aligns with your investment objectives.

What are Dr Reddys Laboratories Ltd's total net assets?

According to Dr Reddys Laboratories Ltd's most recent financial filings, the company's net assets total ₹16681.1 Cr.

Is Dr Reddys Laboratories Ltd making a profit or loss?

Dr Reddys Laboratories Ltd's net Profit as of May 23, 2024 is close to ₹5,577 Cr.
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