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Dr Reddy's Laboratories Ltd
NSE:DRREDDY

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Dr Reddy's Laboratories Ltd
NSE:DRREDDY
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Price: 1 322.9 INR -0.52% Market Closed
Market Cap: ₹1.1T

EV/IC

2.4
Current
13%
Cheaper
vs 3-y average of 2.7

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
2.4
=
Enterprise Value
₹1T
/
Invested Capital
₹434.4B

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
2.4
=
Enterprise Value
₹1T
/
Invested Capital
₹434.4B

Valuation Scenarios

Dr Reddy's Laboratories Ltd is trading below its 3-year average

If EV/IC returns to its 3-Year Average (2.7), the stock would be worth ₹1 515.98 (15% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-6%
Maximum Upside
+39%
Average Upside
11%
Scenario EV/IC Value Implied Price Upside/Downside
Current Multiple 2.4 ₹1 322.9
0%
3-Year Average 2.7 ₹1 515.98
+15%
5-Year Average 2.3 ₹1 249.19
-6%
Industry Average 3.3 ₹1 843.37
+39%
Country Average 2.3 ₹1 254.68
-5%

Forward EV/IC
Today’s price vs future invested capital

Not enough data available to calculate forward EV/IC

Peer Comparison

All Multiples
EV/IC
P/E
All Countries
Close
Market Cap EV/IC P/E
IN
Dr Reddy's Laboratories Ltd
NSE:DRREDDY
1.1T INR 2.4 19.7
US
Eli Lilly and Co
NYSE:LLY
908.9B USD 8.9 36
US
Johnson & Johnson
NYSE:JNJ
547.1B USD 3.4 26
CH
Roche Holding AG
SIX:ROG
248.4B CHF 2.9 20.1
UK
AstraZeneca PLC
LSE:AZN
209.6B GBP 3.7 27.4
CH
Novartis AG
SIX:NOVN
221.1B CHF 2.9 20.7
US
Merck & Co Inc
NYSE:MRK
277.6B USD 2.6 31.1
IE
Endo International PLC
LSE:0Y5F
244.4B USD 56 -83.6
DK
Novo Nordisk A/S
CSE:NOVO B
1.2T DKK 2.7 12.1
US
Pfizer Inc
NYSE:PFE
149.7B USD 1 19.3
US
Bristol-Myers Squibb Co
NYSE:BMY
118.9B USD -9.1 4 516.9
P/E Multiple
Earnings Growth PEG
IN
Dr Reddy's Laboratories Ltd
NSE:DRREDDY
Average P/E: 472.9
19.7
-1%
N/A
US
Eli Lilly and Co
NYSE:LLY
36
32%
1.1
US
Johnson & Johnson
NYSE:JNJ
26
8%
3.3
CH
Roche Holding AG
SIX:ROG
20.1
14%
1.4
UK
AstraZeneca PLC
LSE:AZN
27.4
25%
1.1
CH
Novartis AG
SIX:NOVN
20.7
14%
1.5
US
Merck & Co Inc
NYSE:MRK
31.1
14%
2.2
IE
E
Endo International PLC
LSE:0Y5F
Negative Multiple: -83.6 N/A N/A
DK
Novo Nordisk A/S
CSE:NOVO B
12.1
0%
N/A
US
Pfizer Inc
NYSE:PFE
19.3
22%
0.9
US
Bristol-Myers Squibb Co
NYSE:BMY
4 516.9
648%
7

Market Distribution

In line with most companies in India
Percentile
52st
Based on 2 828 companies
52st percentile
2.4
Low
0 — 1.3
Typical Range
1.3 — 4.2
High
4.2 —
Distribution Statistics
India
Min 0
30th Percentile 1.3
Median 2.3
70th Percentile 4.2
Max 4 185.7

Dr Reddy's Laboratories Ltd
Glance View

In the bustling world of pharmaceuticals, Dr. Reddy's Laboratories Ltd. stands as a testament to innovation and resilience. Founded in 1984 by Dr. K. Anji Reddy, the company embarked on a journey to provide affordable and accessible medicine. Dr. Reddy's merged scientific rigor with a clear vision to eliminate health disparities worldwide. From creating complex generics and active pharmaceutical ingredients (APIs) to providing differentiated formulations, the company has built a strong foundation in both developed markets, like the United States and Europe, as well as in emerging markets such as India, Russia, and the CIS countries. This global footprint ensures that while many pharmaceutical companies are battling regulatory challenges and pricing pressures, Dr. Reddy's stays agile and competitive. The company's revenue streams primarily derive from its diverse portfolio of generic drugs, APIs, branded formulations, biologics, and proprietary products. Each sector is a strategic puzzle piece that enhances its market presence and ensures supply chain efficiency. Dr. Reddy's invests heavily in research and development to bolster its pipeline of future medications, aiming to address unmet medical needs and introduce value-added products. By leveraging strategic alliances and forging partnerships in development and distribution, the company adeptly navigates the complex landscape of the pharmaceutical industry, ensuring sustainable growth and reaffirming its commitment to affordable healthcare globally.

DRREDDY Intrinsic Value
871.39 INR
Overvaluation 34%
Intrinsic Value
Price ₹1 322.9
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