DR.REDDYs LABORATORIES LTD
Q1 FY21 RESULTS REVIEW
DT 30 09 20
COMPANY OVERVIEW
Dr Reddy`s Laboratories core strength is Active Pharmaceutical Ingredients (API) having a wide range of portfolio.
The company also manufactures generic medicines with business spread across India, Russia, US and Germany as well as Proprietary Products which includes NCE research, biologics business and differentiated formulations conducted in the US.
Under this the company has launched Grafeel(Filgrastim) and Reditux(Rituximab).
MANAGEMENT
K Satish Reddy Chairman
G V Prasad Co-Chairman & Manag. Director
|
Dr Reddys Laboratories (in Rs. Cr.) |
Jun '20 |
Mar '20 |
Jun '19 |
YOY |
QOQ |
|
Net Sales |
4,418 |
4,432 |
3,844 |
14.93 |
-0.32 |
|
Other Operating Income |
9 |
17.1 |
14.6 |
-38.36 |
-47.37 |
|
Total Income From Operations |
4,426.50 |
4,448.90 |
3,858.20 |
14.73 |
-0.5 |
|
Consumption of Raw Materials |
1,143.90 |
745.3 |
736.4 |
55.34 |
53.48 |
|
Purchase of Traded Goods |
527.6 |
587.5 |
521.6 |
1.15 |
-10.2 |
|
Increase/Decrease in Stocks |
-351.9 |
198.3 |
-51.1 |
588.65 |
-277.46 |
|
Employees Cost |
872.4 |
855.5 |
861.5 |
1.27 |
1.98 |
|
Depreciation |
292.3 |
274.1 |
289 |
1.14 |
6.64 |
|
Other Expenses |
1,113.20 |
1,113.10 |
1,048.10 |
6.21 |
0.01 |
|
P/L Before Other Inc., Int., Excpt. Items & Tax |
829 |
675.1 |
452.7 |
83.12 |
22.8 |
|
Other Income |
87.1 |
73.6 |
430.1 |
-79.75 |
18.34 |
|
P/L Before Int., Excpt. Items & Tax |
916.1 |
748.7 |
882.8 |
3.77 |
22.36 |
|
Interest |
23.3 |
23 |
29.8 |
-21.81 |
1.3 |
|
P/L Before Tax |
892.8 |
725.7 |
853 |
4.67 |
23.03 |
|
Tax |
305.9 |
-44.9 |
192.8 |
58.66 |
-781.29 |
|
Net Profit/(Loss) For the Period |
586.9 |
770.6 |
660.2 |
-11.1 |
-23.84 |
|
Share Of P/L Of Associates |
7.7 |
10.5 |
16.3 |
-52.76 |
-26.67 |
|
Net P/L After M.I & Associates |
594.6 |
781.1 |
676.5 |
-12.11 |
-23.88 |
|
Equity Share Capital |
83.1 |
83.1 |
83.1 |
0 |
0 |
|
Basic EPS |
35.87 |
47.12 |
40.81 |
-12.1 |
-23.88 |
|
MP |
5084 |
||||
|
PE |
35.43351 |
||||
|
VOLUME |
14,29,998 |
52 Wk L/H 2497.6 5514.65
|
Annual |
Mar-20 |
Mar-19 |
Mar-18 |
Mar-17 |
Mar-16 |
|
Sales |
17,517 |
15,448 |
14,281 |
14,196 |
15,568 |
|
Other Income |
620 |
337 |
155 |
171 |
295 |
|
Total Income |
18,137 |
15,785 |
14,436 |
14,367 |
15,863 |
|
Total Expenditure |
16,209 |
13,404 |
13,007 |
12,750 |
12,921 |
|
EBIT |
1,927 |
2,380 |
1,429 |
1,617 |
2,941 |
|
Interest |
98 |
88 |
78 |
63 |
82 |
|
Tax |
-140 |
385 |
438 |
296 |
751 |
|
Net Profit |
1,969 |
1,906 |
912 |
1,257 |
2,107 |
|
Per Share Ratios |
Mar-20 |
Mar-19 |
Mar-18 |
Mar-17 |
Mar-16 |
|
Basic EPS (Rs.) |
122.22 |
117.53 |
57.08 |
77.53 |
124.93 |
|
Diluted Eps (Rs.) |
121.99 |
117.33 |
56.96 |
77.37 |
124.54 |
|
Book Value [Excl. Reval Reserve]/Share (Rs.) |
938.56 |
844.8 |
757.33 |
739.57 |
736.8 |
|
Dividend/Share (Rs.) |
25 |
20 |
20 |
20 |
20 |
|
Face Value |
5 |
5 |
5 |
5 |
5 |
|
Margin Ratios |
Mar-20 |
Mar-19 |
Mar-18 |
Mar-17 |
Mar-16 |
|
Gross Profit Margin (%) |
17.64 |
22.75 |
17.55 |
18.62 |
24.92 |
|
Operating Margin (%) |
11 |
15.41 |
10 |
11.39 |
18.89 |
|
Net Profit Margin (%) |
11.24 |
12.33 |
6.38 |
8.85 |
13.53 |
|
Return Ratios |
Mar-20 |
Mar-19 |
Mar-18 |
Mar-17 |
Mar-16 |
|
Return on Networth / Equity (%) |
12.98 |
13.9 |
7.53 |
10.53 |
16.95 |
|
ROCE (%) |
12.04 |
14.37 |
9.13 |
12.07 |
15.17 |
|
Return On Assets (%) |
8.72 |
8.67 |
4.19 |
5.92 |
10.45 |
|
Liquidity Ratios |
Mar-20 |
Mar-19 |
Mar-18 |
Mar-17 |
Mar-16 |
|
Current Ratio (X) |
1.75 |
1.88 |
1.52 |
1.15 |
1.86 |
|
Quick Ratio (X) |
1.26 |
1.31 |
1.1 |
0.81 |
1.46 |
|
Leverage Ratios |
Mar-20 |
Mar-19 |
Mar-18 |
Mar-17 |
Mar-16 |
|
Debt to Equity (x) |
0.11 |
0.24 |
0.4 |
0.4 |
0.27 |
|
Interest Coverage Ratios (%) |
19.61 |
26.78 |
18.14 |
25.51 |
35.61 |
|
Turnover Ratios |
Mar-20 |
Mar-19 |
Mar-18 |
Mar-17 |
Mar-16 |
|
Asset Turnover Ratio (%) |
75.42 |
68.76 |
63.34 |
65.07 |
76.37 |
|
Inventory Turnover Ratio (X) |
5 |
4.6 |
4.91 |
4.98 |
6.09 |
|
Valuation Ratios |
Mar-20 |
Mar-19 |
Mar-18 |
Mar-17 |
Mar-16 |
|
P/E (x) |
1.61 |
2.73 |
4.38 |
3.78 |
1.55 |
|
P/B (x) |
3.32 |
3.28 |
2.75 |
3.56 |
4.12 |
|
EV/EBITDA (x) |
17.27 |
14.01 |
15.71 |
18.22 |
14.08 |
|
P/S (x) |
2.96 |
2.98 |
2.42 |
3.07 |
3.33 |
|
Growth Ratios |
Mar-20 |
Mar-19 |
Mar-18 |
Mar-17 |
Mar-16 |
|
3 Yr CAGR Sales (%) |
12.52 |
4.56 |
-4.25 |
-1.47 |
2.44 |
|
3 Yr CAGR Net Profit (%) |
127.64 |
-3.94 |
-35.31 |
-9.22 |
-16.29 |
|
Historical Prices |
|||
|
3YR BEF |
Current Price |
%Gain / Loss |
|
|
Open Price |
2307.5 |
5145 |
122.97 |
|
2YR BEF |
|||
|
Open Price |
2560 |
5145 |
100.98 |
|
1 YR BEF |
|||
|
Open Price |
2800 |
5145 |
83.75 |
|
3M BEF |
|||
|
Open Price |
4000 |
5145 |
28.63 |
Dividend Summary
For the year ending March 2020 Dr Reddys Laboratories has declared an equity dividend of 500.00% amounting to Rs 25 per share.
At the current share price of Rs 5089.70 this results in a dividend yield of 0.49%.
The company has a good dividend track report and has consistently declared dividends for the last 5 years
|
Share Holding Pattern in (%) |
||||
|
Standalone |
Jun-20 |
Mar-20 |
Jun-19 |
Mar-19 |
|
Promoters |
31.1 |
31.15 |
31.23 |
31.17 |
|
Pledged |
0 |
0 |
0 |
0 |
|
FII/FPI |
34.11 |
35.1 |
35.86 |
36.02 |
|
Total DII |
25.91 |
25.12 |
23.59 |
23.52 |
|
Fin.Insts |
0.1 |
0.17 |
0.27 |
0.24 |
|
Insurance Co |
5.17 |
6.22 |
5.72 |
5.73 |
|
MF |
11.59 |
10.19 |
10 |
10.61 |
|
Others DIIs |
9.05 |
8.54 |
7.6 |
6.94 |
|
Others |
8.88 |
8.64 |
9.3 |
9.29 |
|
Total |
100 |
100.01 |
99.98 |
100 |
STRENGTHS
ROA improving since last 2 year
Company with Low Debt
Strong cash generating ability from core business - Improving Cash Flow from operation for last 2 years
Company able to generate Net Cash - Improving Net Cash Flow for last 2 years
Annual Net Profits improving for last 2 years
Book Value per share Improving for last 2 years
Company with Zero Promoter Pledge
Strong Momentum: Price above short, medium and long term moving averages
WEAKNESSES
Decline in Net Profit with falling Profit Margin (QoQ)
Decline in Quarterly Net Profit with falling Profit Margin (YoY)
Promoter decreasing their shareholding
OPPORTUNITIES
Brokers upgraded recommendation or target price in the past three months
Highest Recovery from 52 Week Low
RSI indicating price strength
Insiders bought stocks
THREATS
Red Flags: Firms linked to ongoing regulatory investigations/legal cases
Company with negative growth and promoters decreasing shareholding
Increasing Trend in Non-Core Income
Stocks with high PE (PE > 40)
CHARTS
1YR CHARTS
Apr-2020 HIT LOWEST .THEN UPWARD PATH
2YR CHARTS
APRIL 2020 LOWEST. THEN UPWARD
5 YR CHART
U FORMATION.
Sep,2017, MAY 18 LOW POINTS. THEN RISING HIGH
6 MONTHS
FROMAPRIL 20, GOOD UPWARD CURVE
3 MONTHS
JULY 7TH ANOTHER LOWEST POINT
1 MONTH
SEP 14TH ONWARDS STEEP RISE
MONTHLY TECHNICAL RATING
Very Bullish
Valuation
Market Cap (Rs Cr.) 84,623.58
P/E 25.33
Book Value (Rs) 913.69
Dividend (%) 500
Industry P/E 37.08
EPS (TTM) 200.87
P/C 20.49
Price/Book 5.57
Dividend Yield.(%) 0.49
Face Value (RS) 5
Views
Accumulate Dr. Reddy's Laboratories; target of Rs 5648: Prabhudas Lilladher
Sep 24, 14:00
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