Dr Reddys Laboratories Intrinsic Value
DRREDDY • Healthcare
Current Stock Price
₹1196.10
Primary Intrinsic Value
₹1423.84
Market Cap
₹9928 Cr
+100.0%
Upside
Median Value
₹2392.20
Value Range
₹414 - ₹2990
Assessment
Trading Below Calculated Value
Safety Margin
50.0%
DRREDDY Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹1423.84 | ₹1139.07 - ₹1708.61 | +19.0% | EPS: ₹64.72, Sector P/E: 22x |
| Book Value Method | asset | ₹2990.25 | ₹2691.22 - ₹3289.28 | +150.0% | Book Value/Share: ₹4087.59, P/B: 2.0x |
| Revenue Multiple Method | revenue | ₹2392.20 | ₹2152.98 - ₹2631.42 | +100.0% | Revenue/Share: ₹4402.41, P/S: 2.0x |
| EBITDA Multiple Method | earnings | ₹2392.20 | ₹2152.98 - ₹2631.42 | +100.0% | EBITDA: ₹9268.00Cr, EV/EBITDA: 10x |
| Simple DCF (5Y) | dcf | ₹2990.25 | ₹2392.20 - ₹3588.30 | +150.0% | CF Growth: 6.8%, Discount: 15% |
| PEG Ratio Method | growth | ₹414.21 | ₹372.79 - ₹455.63 | -65.4% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹999.92 | ₹899.93 - ₹1099.91 | -16.4% | Revenue Growth: 6.0%, Adj P/E: 15.5x |
| ROE Based Valuation | profitability | ₹2392.20 | ₹2152.98 - ₹2631.42 | +100.0% | ROE: 15.8%, P/E Multiple: 14x |
| Graham Defensive Method | conservative | ₹2439.74 | ₹2195.77 - ₹2683.71 | +104.0% | EPS: ₹64.72, BVPS: ₹4087.59 |
Method Types:
Earnings
Asset
DCF
Growth
Dividend
Conservative
Valuation Comparison Chart
DRREDDY Intrinsic Value Analysis
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 ₹2392.20 (median value). With the current market price of ₹1196.10, this represents a +100.0% variance from our estimated fair value.
The valuation range spans from ₹414.21 to ₹2990.25, indicating ₹414.21 - ₹2990.25.
Is DRREDDY undervalued or overvalued?
Based on our multi-method analysis, Dr Reddys Laboratories (DRREDDY) appears to be trading below calculated value by approximately 100.0%.
Financial Health Analysis
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Current Ratio | 10.15 | Industry Standard: 2.0+ | Above 2.0 | Measures short-term liquidity capacity |
| Return on Equity | 15.8% | Industry Standard: 15%+ | Above 15% | Measures shareholder return efficiency |
| Operating Margin | 23.0% | Industry Standard: 20%+ | Above 20% | Indicates operational efficiency level |
| Asset Turnover Ratio | 0.74x | Industry Standard: 1.0x+ | Above 0.5x | Measures asset utilization efficiency |
Related Pages for Dr Reddys Laboratories
Additional stock information and data for DRREDDY
Cash Flow Quality Analysis
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| 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 |
| March 2021 | ₹3,570 Cr | ₹2,443 Cr | Positive Free Cash Flow | 8/10 |