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The BSE, founded in 1875, is Asia's oldest stock exchange — it started under a banyan tree on Dalal Street, where the bronze bull stands today.
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The BSE, founded in 1875, is Asia's oldest stock exchange — it started under a banyan tree on Dalal Street, where the bronze bull stands today.
The BSE, founded in 1875, is Asia's oldest stock exchange — it started under a banyan tree on Dalal Street, where the bronze bull stands today.
Dr. Reddy’s Laboratories Limited is an India-based pharmaceutical company. Its products and services are spread across its core businesses of active pharmaceutical ingredients (APIs), generics, branded generics, biosimilars and over-the-counter (OTC) pharmaceutical products.…
Weekly engine runs — movement reflects the numbers, not analyst opinion.
A middling, stagnant business, priced for perfection.
Dr. Reddy's Laboratories is scored on the pharma / healthcare framework. It keeps a healthy 11.9% of every rupee of sales as net profit. Those profits are backed by real cash — operating cash flow runs 1.36× reported profit. Free cash flow is worth about -0.8% of its market value.
Over the last 3 years revenue compounded at 11%/yr and profit at -3%/yr. Book value itself has compounded 18%/yr — the hallmark of a genuine compounder. Return on equity is a weak 7.2%. In the latest quarter profit grew 110% versus the prior quarter.
At 27× earnings, the stock sits at the 99th percentile of its own 3.6-year range — the expensive end of where it has historically traded. Today's price already implies ~19%/yr earnings growth sustained for a decade — a demanding bar. The books come through clean — a forensic grade of A, and Altman puts distress risk in the safe zone.
A plain-English restatement of the figures on this page — rules-based, for education and research context, not investment advice or a recommendation.
| Ratio | Company | Sector | Read |
|---|---|---|---|
| P/E | 41.5 | — | — |
| P/B | 2.95 | 4.11 | better |
| EV/EBITDA | 19.25 | 19.15 | worse |
| ROE | 7.21 | — | — |
| ROCE | 8.58 | 6.87 | better |
| ROA | 4.79 | 1.26 | better |
| Quick Ratio | 1.35 | 4.8 | worse |
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Sun Pharmaceutical Industries | 40.6 | 5.0 | 13.8% |
| Divis Laboratories | 93.5 | 16.3 | 15.3% |
| Torrent Pharmaceuticals | 85.9 | 9.8 | 11.4% |
Revenue has grown every year across all 4 financial years shown. 11% CAGR over 3 years — steady double-digit compounder. Growth is decelerating — latest year grew slower than the year before.
Profit is on a 2-year growth streak. Revenue is outpacing profit (11% vs -3%) — costs are rising faster than the top line.
Operating margin has compressed from 24% to 15% — costs or competition are eating into profitability. Interest or tax burden is shrinking — more of the operating profit is reaching the bottom line.
ROE at 11% — modest; the capital isn't working hard. Capital efficiency declining — ROE down 8pp.
EPS dropped in the latest year despite possible profit changes — dilution or a profit dip could be at play. Profit grew faster than EPS (-3% vs -43%) — share dilution is eroding per-share value. -43% EPS CAGR — this is the rate at which each share's claim on earnings is compounding.
Operating cash flow has been positive every year — the business generates real cash, not just accounting profit. Cash conversion at 1.4× PAT — earnings are well-backed by cash; strong accrual quality. Investing outflows exceed operating cash — the company relies on external funding to finance expansion.
When operating cash keeps pace with reported profit, earnings are cash-backed; a persistent shortfall is a quality flag.
Revenue broadly flat QoQ — stable but not accelerating.
Profit jumped 110% QoQ — check if this is operating leverage or a one-off item. Quarterly margins are compressing (13% → 10%) — more revenue isn't translating to proportionally more profit.
How today's P/E compares to the stock's own historical range. Dashed line = the 3.6y median.
Promoters hold just 26.6% — widely held; sentiment-driven.
Produced by a rules-based engine over licensed exchange fundamentals — every sentence above is derived from the numbers shown, no analyst or AI opinion involved. Education and research context, not investment advice. We are not SEBI-registered as an Investment Adviser or Research Analyst.