DRREDDY.NS Dr. Reddy's Laboratories Limited
INR·Price 1273.40·Mkt cap 1.06TComputed from the latest reported financials and the current market price.
Who's the real player?
A genuine play on this theme — most of its business sits right here.
Is the business healthy?
A mixed picture — real strengths, but soft spots in cash flow, returns or debt.
- ⚠Weak FCF conversion (<50% of net income turns into free cash)
- Strong growth quality
- Healthy balance sheet
- Positive Piotroski score
Are the smart people buying?
No ownership-change data for this stock. Conviction is judged from capex and buyback signals alone.
- High institutional holding
- Capex growth indicates belief in future
What is management saying?
No earnings-call transcript or filings found for this stock.
Is the price right?
Intrinsic value 128.44 vs price 1273.40 — screens expensive on a cash-flow DCF (-89.9% to intrinsic). The base FCF growth assumption of 0% is not believable for a long-term DCF model.
| Intrinsic / share | 128.44 |
| Price | 1273.40 |
| Upside to intrinsic | -89.9% |
| Reverse-DCF implied g | 26.1% |
Base FCF 16.12B · growth 0.0% · discount 12.0% · terminal 5.0%.
Sensitivity — intrinsic value / share
Each cell is the intrinsic value at that growth (across →) and discount rate (down ↓). Center ★ is the base case. Cells green = above price (cheap), red = below (expensive).
| Growth rate → | |||||
|---|---|---|---|---|---|
| Disc ↓ ╲ g | -4% | -2% | 0% | 2% | 4% |
| 10% | 128.49 | 161.92 | 201.25 | 247.44 | 301.62 |
| 11% | 99.78 | 126.99 | 158.89 | 196.21 | 239.85 |
| 12% | 79.02 | 101.82 | ★ 128.44 | 159.49 | 195.68 |
| 13% | 63.24 | 82.76 | 105.46 | 131.85 | 162.51 |
| 14% | 50.8 | 67.79 | 87.47 | 110.27 | 136.69 |
Through the masters' eyes
Each investor's numeric rules, checked against this stock's metrics: exact math, no guesswork. Tap one to see which rules pass, fail, and what to judge yourself.
▶
Passes 2 of 2 of Peter Lynch's numeric checks. Still judge the non-numeric criteria below for yourself.
- Manageable debt (D/E ≤ 1.0) — now 0.21
- Solid liquidity (current ratio ≥ 1.5) — now 1.8
- A simple business you understand
- Which 'type' it is (fast grower, stalwart, cyclical…)
- A believable growth story
Couldn't check from available data: PEG ≤ 1 (growth cheap vs price) — not available; Earnings growth ≥ 15% — not available
▶
Passes 3 of 4 of Radhakishan Damani's numeric checks. Still judge the non-numeric criteria below for yourself.
- Very low debt (D/E ≤ 0.5) — now 0.21
- Consistent revenue (consistency ≥ 80%) — now 94.3%
- Positive net margin — now 12.8%
- High returns on capital (ROCE ≥ 18%) — now 12.2%
- A durable consumer franchise
- Pricing power
- A long runway, bought patiently
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Passes 2 of 3 of Rakesh Jhunjhunwala's numeric checks. Still judge the non-numeric criteria below for yourself.
- Net margin ≥ 10% — now 12.8%
- Conservative leverage (D/E ≤ 1.0) — now 0.21
- ROE ≥ 18% — now 11.4%
- A large, scalable opportunity
- Trustworthy, ambitious management
- Conviction to hold through volatility
Couldn't check from available data: Earnings growth ≥ 15% — not available
▶
Passes 3 of 5 of Warren Buffett's numeric checks. Still judge the non-numeric criteria below for yourself.
- Net margin ≥ 10% — now 12.8%
- Positive free cash flow — now 5.5%
- Conservative leverage (D/E ≤ 1.0) — now 0.21
- ROE ≥ 15% — now 11.4%
- Trades below intrinsic value (margin of safety ≥ 0) — now -891.4%
- A business you can understand
- A durable competitive moat
- Honest, capable management
▶
Passes 3 of 6 of Benjamin Graham's numeric checks. Still judge the non-numeric criteria below for yourself.
- Strong liquidity (current ratio ≥ 1.5) — now 1.8
- Debt below equity (D/E ≤ 1.0) — now 0.21
- Financially safe (Altman Z ≥ 3) — now 4.66
- P/E ≤ 15 — now 24.8
- P/B ≤ 1.5 — now 2.82
- Graham number: P/E × P/B ≤ 22.5 — now 69.9
- A long record of stable earnings
- An uninterrupted dividend history
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Passes 1 of 2 of Raamdeo Agrawal's numeric checks. Still judge the non-numeric criteria below for yourself.
- Longevity: revenue consistency ≥ 70% — now 94.3%
- Quality: ROCE ≥ 18% — now 12.2%
- Durability of the growth (longevity)
- Quality and honesty of management
Couldn't check from available data: Growth: earnings CAGR ≥ 15% — not available; Price: PEG ≤ 2 — not available
▶
Passes 1 of 2 of Vijay Kedia's numeric checks. Still judge the non-numeric criteria below for yourself.
- Manageable debt (D/E ≤ 1.0) — now 0.21
- ROE ≥ 15% — now 11.4%
- Ambitious, capable management
- A small company with a large opportunity
- Patience to hold for years
Couldn't check from available data: Strong earnings growth ≥ 20% — not available
▶
Passes 1 of 4 of Charlie Munger's numeric checks. Still judge the non-numeric criteria below for yourself.
- Conservative leverage (D/E ≤ 1.0) — now 0.21
- High returns on capital (ROCE ≥ 15%) — now 12.2%
- ROE ≥ 15% — now 11.4%
- Trades below intrinsic value (margin of safety ≥ 0) — now -891.4%
- A high-quality, understandable business
- A durable moat
- Management of integrity
Financial statements (INR)
↗ sourceCash-flow lines highlighted — we trust cash over reported profit.
| Line | 2026 | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|---|
| Revenue | 335.93B | 325.54B | 279.16B | 245.88B | — |
| Operating income | 50.12B | 72.01B | 65.31B | 59.05B | — |
| EBITDA | 79.16B | 96.67B | 88.42B | 74.43B | — |
| Net income | 42.85B | 56.54B | 55.68B | 45.07B | — |
| Operating cash flow | 56.76B | 46.43B | 45.43B | 58.88B | — |
| Capex | -38.42B | -34.40B | -27.43B | -18.87B | — |
| Free cash flow | 18.33B | 12.03B | 18.00B | 40.01B | — |
| Total assets | 579.35B | 492.99B | 387.52B | 321.85B | — |
| Total equity | 377.06B | 333.39B | 280.55B | 230.99B | — |
| Total debt | 77.34B | 46.77B | 20.02B | 13.47B | — |
| Cash & equivalents | 15.37B | 14.65B | 7.11B | 5.78B | — |