Dr Reddys Laboratories Intrinsic Value
Dr Reddys Laboratories (DRREDDY) median intrinsic value is ₹1041.87 from 9 valuation models (range ₹346–₹2879), vs current price ₹1151.70 — -9.5% downside (Trading Near Calculated Value), margin of safety -10.5%. For current market price and key ratios, visit DRREDDY share price.
DRREDDY Valuation Methods Summary — DCF, Graham Number & P/E
Dr Reddys Laboratories intrinsic value across 9 models vs current price ₹1151.70 — upside/downside and value range per method. Analyse DRREDDY shareholder distribution to track promoter, FII and institutional holdings.
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹345.51 | ₹276.41 - ₹414.61 | -70.0% | EPS: ₹10.60, Sector P/E: 22x |
| Book Value Method | asset | ₹2879.25 | ₹2591.33 - ₹3167.18 | +150.0% | Book Value/Share: ₹4551.31, P/B: 2.0x |
| Revenue Multiple Method | revenue | ₹2303.40 | ₹2073.06 - ₹2533.74 | +100.0% | Revenue/Share: ₹3807.62, P/S: 2.0x |
| EBITDA Multiple Method | earnings | ₹2303.40 | ₹2073.06 - ₹2533.74 | +100.0% | EBITDA: ₹3328.00Cr, EV/EBITDA: 10x |
| Simple DCF (5Y) | dcf | ₹2879.25 | ₹2303.40 - ₹3455.10 | +150.0% | CF Growth: 15.0%, Discount: 15% |
| PEG Ratio Method | growth | ₹345.51 | ₹310.96 - ₹380.06 | -70.0% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹345.51 | ₹310.96 - ₹380.06 | -70.0% | Revenue Growth: 6.0%, Adj P/E: 15.5x |
| Graham Defensive Method | conservative | ₹1041.87 | ₹937.68 - ₹1146.06 | -9.5% | EPS: ₹10.60, BVPS: ₹4551.31 |
| Dividend Yield Method | dividend | ₹345.51 | ₹310.96 - ₹380.06 | -70.0% | DPS: ₹8.00, Target Yield: 2.5% |
DRREDDY Intrinsic Value vs Market Price — All Valuation Models
Dr Reddys Laboratories fair value range ₹346–₹2879 vs current market price ₹1151.70 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 ₹1151.70 — Trading Near Calculated Value by 9.5%, margin of safety -10.5%.
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 ₹1151.70, this represents a -9.5% variance from our estimated fair value.
The valuation range spans from ₹345.51 to ₹2879.25, indicating ₹345.51 - ₹2879.25.
Is DRREDDY undervalued or overvalued?
Based on our multi-method analysis, Dr Reddys Laboratories (DRREDDY) appears to be trading near calculated value by approximately 9.5%.
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 |
|---|---|---|---|---|
| Current Ratio | 9.60 | Industry Standard: 2.0+ | Above 2.0 | Measures short-term liquidity capacity |
| 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 |