Dr Reddys Laboratories Intrinsic Value
Dr Reddys Laboratories intrinsic value. Dr Reddys Laboratories (DRREDDY) median intrinsic value is ₹1041.87 from 9 valuation models (range ₹372–₹3098), vs current price ₹1239.00 — -15.9% downside (Trading Above Median Value), margin of safety -18.9%. Compare with DRREDDY fundamental valuation to assess whether the stock is under or overvalued.
DRREDDY Valuation Methods Summary — DCF, Graham Number & P/E
Dr Reddys Laboratories intrinsic value across 9 models vs current price ₹1239.00 — upside/downside and value range per method. For current market price and key ratios, visit DRREDDY share price.
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹371.70 | ₹297.36 - ₹446.04 | -70.0% | EPS: ₹10.60, Sector P/E: 22x |
| Book Value Method | asset | ₹3097.50 | ₹2787.75 - ₹3407.25 | +150.0% | Book Value/Share: ₹4551.31, P/B: 2.0x |
| Revenue Multiple Method | revenue | ₹2478.00 | ₹2230.20 - ₹2725.80 | +100.0% | Revenue/Share: ₹3807.62, P/S: 2.0x |
| EBITDA Multiple Method | earnings | ₹2478.00 | ₹2230.20 - ₹2725.80 | +100.0% | EBITDA: ₹3328.00Cr, EV/EBITDA: 10x |
| Simple DCF (5Y) | dcf | ₹3097.50 | ₹2478.00 - ₹3717.00 | +150.0% | CF Growth: 15.0%, Discount: 15% |
| PEG Ratio Method | growth | ₹371.70 | ₹334.53 - ₹408.87 | -70.0% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹371.70 | ₹334.53 - ₹408.87 | -70.0% | Revenue Growth: 6.0%, Adj P/E: 15.5x |
| Graham Defensive Method | conservative | ₹1041.87 | ₹937.68 - ₹1146.06 | -15.9% | EPS: ₹10.60, BVPS: ₹4551.31 |
| Dividend Yield Method | dividend | ₹371.70 | ₹334.53 - ₹408.87 | -70.0% | DPS: ₹8.00, Target Yield: 2.5% |
DRREDDY Intrinsic Value vs Market Price — All Valuation Models
Dr Reddys Laboratories fair value range ₹372–₹3098 vs current market price ₹1239.00 across 9 valuation models. Read DRREDDY dividend growth for the complete payout history and dividend yield track record.
DRREDDY Intrinsic Value Analysis — Undervalued or Overvalued?
Dr Reddys Laboratories median intrinsic value ₹1041.87, current price ₹1239.00 — Trading Above Median Value by 15.9%, margin of safety -18.9%.
What is the intrinsic value of DRREDDY?
Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Dr Reddys Laboratories (DRREDDY) is ₹1041.87 (median value). With the current market price of ₹1239.00, this represents a -15.9% variance from our estimated fair value.
The valuation range spans from ₹371.70 to ₹3097.50, indicating ₹371.70 - ₹3097.50.
Is DRREDDY undervalued or overvalued?
Based on our multi-method analysis, Dr Reddys Laboratories (DRREDDY) appears to be trading above median value by approximately 15.9%.
DRREDDY Financial Health — Key Ratios vs Industry Benchmarks
Dr Reddys Laboratories financial ratios — ROE, debt-to-equity, profit margins and liquidity vs industry benchmarks and their impact on intrinsic value.
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Return on Equity | 2.3% | Industry Standard: 15%+ | Below 10% | Measures shareholder return efficiency |
| Operating Margin | 5.0% | Industry Standard: 20%+ | Below 10% | Indicates operational efficiency level |
| Asset Turnover Ratio | 0.55x | Industry Standard: 1.0x+ | Above 0.5x | Measures asset utilization efficiency |
DRREDDY Cash Flow Quality — Operating & Free Cash Flow
Dr Reddys Laboratories operating cash flow, free cash flow, quality rating and sustainability score by period — key inputs to DCF intrinsic value calculation.
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2026 | ₹5,674 Cr | ₹2,462 Cr | Positive Free Cash Flow | 7/10 |
| March 2025 | ₹4,643 Cr | ₹1,751 Cr | Positive Free Cash Flow | 7/10 |
| March 2024 | ₹4,543 Cr | ₹2,526 Cr | Positive Free Cash Flow | 8/10 |
| March 2023 | ₹5,888 Cr | ₹3,834 Cr | Positive Free Cash Flow | 8/10 |
| March 2022 | ₹2,811 Cr | ₹1,529 Cr | Positive Free Cash Flow | 8/10 |