Dr. Reddy's Laboratories Ltd
Find Ratings ReportsDR REDDY'S LABORATORIES LTD's gross profit margin for the third quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its subsector this quarter as compared to the same quarter a year ago. DR REDDY'S LABORATORIES LTD has strong liquidity. Currently, the Quick Ratio is 1.83 which shows the ability to cover short-term cash needs.
During the same period, stockholders' equity ("net worth") has increased by 20.90% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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Income Statement | Q3 FY23 | Q3 FY22 |
---|---|---|
Net Sales ($mil) | 863.79 | 794.32 |
EBITDA ($mil) | 241.55 | 242.65 |
EBIT ($mil) | 196.42 | 204.4 |
Net Income ($mil) | 165.03 | 145.96 |
Balance Sheet | Q3 FY23 | Q3 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 871.62 | 586.03 |
Total Assets ($mil) | 4479.32 | 3737.33 |
Total Debt ($mil) | 238.49 | 213.43 |
Equity ($mil) | 3217.95 | 2661.6 |
Profitability | Q3 FY23 | Q3 FY22 |
---|---|---|
Gross Profit Margin | 60.82 | 61.7 |
EBITDA Margin | 27.96 | 30.54 |
Operating Margin | 22.74 | 25.73 |
Sales Turnover | 0.73 | 0.77 |
Return on Assets | 14.11 | 11.62 |
Return on Equity | 19.64 | 16.33 |
Debt | Q3 FY23 | Q3 FY22 |
---|---|---|
Current Ratio | 2.55 | 2.3 |
Debt/Capital | 0.07 | 0.07 |
Interest Expense | 4.72 | 4.92 |
Interest Coverage | 41.63 | 41.59 |
Share Data | Q3 FY23 | Q3 FY22 |
---|---|---|
Shares outstanding (mil) | 166.51 | 166.1 |
Div / share | 0.0 | 0.0 |
EPS | 0.99 | 0.88 |
Book value / share | 19.33 | 16.02 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 203991.0 | 269394.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 85.83 for the Chemical Manufacturing subsector and a discount compared to the S&P 500 average of 27.95. To use another comparison, its price-to-book ratio of 3.90 indicates a discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 19.07. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. Upon assessment of these and other key valuation criteria, DR REDDY'S LABORATORIES LTD proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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RDY 19.86 | Peers 85.83 | RDY 19.30 | Peers 38.76 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. RDY is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. RDY is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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RDY 0.22 | Peers 18.08 | RDY 0.00 | Peers 1.16 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. RDY is trading at a significant discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. RDY trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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RDY 3.90 | Peers 19.07 | RDY 45.03 | Peers 12.58 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. RDY is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. RDY is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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RDY 3.82 | Peers 84.44 | RDY 13.83 | Peers 42.35 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. RDY is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. RDY significantly trails its peers on the basis of sales growth. |
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