Dr. Reddy's Laboratories operates as an integrated pharmaceutical company worldwide. It operates in three segments: Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Proprietary Products. The company was founded in 1984 and is based in Hyderabad, India.
RDY Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Dr Reddys Laboratories Ltd. To summarize, we found that Dr Reddys Laboratories Ltd ranked in the 95th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 4776.17%. As for the metrics that stood out in our discounted cash flow analysis of Dr Reddys Laboratories Ltd, consider:
The business' balance sheet reveals debt to be 3% of the company's capital (with equity being the remaining amount). Approximately only 10.74% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
RDY's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 50.45% of tickers in our DCF set.
As a business, Dr Reddys Laboratories Ltd experienced a tax rate of about 0% over the past twelve months; relative to its sector (Healthcare), this tax rate is higher than just 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Healthcare that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as RDY, try THC, VASO, DVCR, CORT, and FVE.
Dr. Reddy’s Laboratories (RDY) announces the launch of Over-the-Counter ((OTC)) Nicotine Polacrilex Lozenges, 2 mg and 4 mg in the U.S., the store brand version of GlaxoSmithKline's Nicorette Lozenges. The Nicotine Lozenges brands and store brand markets had total U.S. retail sales of ~$200M for the year ended May 17, according...
Dr. Reddy’s Laboratories Ltd. (BSE: 500124, NSE: DRREDDY, NYSE: RDY, along with its subsidiaries together referred to as "Dr. Reddy’s") today announced the launch of Over-the-Counter Nicotine Polacrilex Lozenges, 2 mg and 4 mg, the store brand version of Nicorette® Lozenges in the U.S. market.
Indian drugmaker Cipla Ltd has priced its generic version of Remdesivir, Cipremi, at 4,000 rupees ($53.34) per 100 mg vial, according to several sources, making it among the lowest priced versions of the COVID-19 treatment available so far globally. Cipla had earlier said pricing would not exceed 5,000 rupees. On Tuesday, Sovereign Pharma, which is manufacturing and packaging the drug for Cipla, said it had dispatched the first batch.
Dr Reddy's Laboratories expects its overall performance to be "quite volatile" in the current fiscal with uncertainties related to COVID-19 set to increase during the period, the company said in its Annual Report for 2019-20.