InCred Equities - Dr Reddy's Laboratories Ltd

	Mar-24A	Mar-25A	Mar-26F	Mar-27F
Revenue (Rsm)	279,163	325,535	354,680	331,089
Operating EBITDA (Rsm)	78,384	84,544	90,403	79,097
Net Profit (Rsm)	55,683	56,545	57,598	47,868
Core EPS (Rs)	66.8	67.8	69.1	57.4
Core EPS Growth	23.6%	1.5%	1.9%	(16.9%)
FD Core P/E (x)	19.77	19.47	19.11	23.00
DPS (Rs)	40.0	8.0	8.0	8.0
Dividend Yield	3.03%	0.61%	0.61%	0.61%
EV/EBITDA (x)	13.19	12.75	11.71	12.65
P/FCFE (x)	15.73	36.64	16.44	8.32
Net Gearing	(22.0%)	(3.5%)	(7.7%)	(20.4%)
P/BV (x)	3.92	3.30	2.86	2.58
ROE	21.8%	18.4%	16.0%	11.8%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-24A	Mar-25A	Mar-26F	Mar-27F
Total Net Revenues	279,163	325,535	354,680	331,089
Gross Profit	163,606	190,428	204,550	180,853
Operating EBITDA	78,384	84,544	90,403	79,097
Depreciation And Amortisation	(14,855)	(17,059)	(18,273)	(20,273)
Operating EBIT	63,529	67,485	72,130	58,824
Financial Income/(Expense)	(1,711)	(2,829)	(2,300)	(2,000)
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)	9,904	11,911	6,000	6,000
Profit Before Tax (pre-EI)	71,722	76,567	75,830	62,824
Exceptional Items
Pre-tax Profit	71,722	76,567	75,830	62,824
Taxation	(16,186)	(19,538)	(18,958)	(15,706)
Exceptional Income - post-tax
Profit After Tax	55,536	57,029	56,873	47,118
Minority Interests	147	(484)	725	750
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	55,683	56,545	57,598	47,868
Recurring Net Profit	55,683	56,545	57,598	47,868
Fully Diluted Recurring Net Profit	55,683	56,545	57,598	47,868

(Rs mn)	Mar-24A	Mar-25A	Mar-26F	Mar-27F
EBITDA	78,384	84,544	90,403	79,097
Cash Flow from Invt. & Assoc.
Change In Working Capital	(20,182)	(29,989)	(26,093)	11,309
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense
Other Operating Cashflow	68,394	66,683	70,310	96,406
Net Interest (Paid)/Received	(1,711)	(2,829)	(2,300)	(2,000)
Tax Paid	(21,250)	(17,426)	(21,933)	(18,956)
Cashflow From Operations	45,433	46,428	46,078	75,450
Capex	(15,339)	(26,992)	(25,000)	(15,000)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments		(53,413)
Other Investing Cashflow	(11,032)	(6,894)
Cash Flow From Investing	19,062	(40,871)	21,078	60,450
Debt Raised/(repaid)	5,493	24,490	(194)	(3,641)
Proceeds From Issue Of Shares	805	(1,196)
Shares Repurchased
Dividends Paid	(6,648)	(6,662)	(6,661)	(6,661)
Preferred Dividends
Other Financing Cashflow	(102)	1,065	3,700	4,000
Cash Flow From Financing	(452)	17,697	(3,155)	(6,302)
Total Cash Generated	18,610	(23,174)	17,923	54,148
Free Cashflow To Equity	69,988	30,047	66,961	132,259
Free Cashflow To Firm	66,206	8,386	69,455	137,900

(Rs mn)	Mar-24A	Mar-25A	Mar-26F	Mar-27F
Total Cash And Equivalents	81,639	58,465	76,388	130,536
Total Debtors	80,298	90,420	102,857	96,016
Inventories	63,552	71,085	81,576	76,150
Total Other Current Assets	26,278	30,142	35,468	33,109
Total Current Assets	251,767	250,112	296,290	335,811
Fixed Assets	76,886	97,761	104,488	99,216
Total Investments	5,255	15,202	15,202	15,202
Intangible Assets	41,204	108,613	108,613	108,613
Total Other Non-Current Assets	12,406	21,301	21,301	21,301
Total Non-current Assets	135,751	242,877	249,604	244,332
Short-term Debt	14,030	38,902	38,902	38,902
Current Portion of Long-Term Debt
Total Creditors	30,919	35,523	32,778	31,617
Other Current Liabilities	51,090	55,967	60,874	58,717
Total Current Liabilities	96,039	130,392	132,554	129,236
Total Long-term Debt	5,990	7,864	7,670	4,029
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities	4,939	17,567	17,567	17,567
Total Non-current Liabilities	10,929	25,431	25,237	21,596
Total Provisions
Total Liabilities	106,968	155,823	157,791	150,832
Shareholders Equity	280,550	333,388	385,050	427,007
Minority Interests		3,778	3,053	2,303
Total Equity	280,550	337,166	388,103	429,310

	Mar-24A	Mar-25A	Mar-26F	Mar-27F
Revenue Growth	13.5%	16.6%	9.0%	(6.7%)
Operating EBITDA Growth	22.7%	7.9%	6.9%	(12.5%)
Operating EBITDA Margin	28.1%	26.0%	25.5%	23.9%
Net Cash Per Share (Rs)	73.93	14.04	35.77	105.10
BVPS (Rs)	336.59	399.99	461.97	512.31
Gross Interest Cover	37.13	23.85	31.36	29.41
Effective Tax Rate	22.6%	25.5%	25.0%	25.0%
Net Dividend Payout Ratio
Accounts Receivables Days	99.88	95.71	99.45	109.62
Inventory Days	177.23	181.87	185.58	191.60
Accounts Payables Days	90.59	89.75	83.03	78.22
ROIC (%)	21.7%	15.4%	15.0%	12.8%
ROCE (%)	23.3%	19.7%	17.6%	13.0%
Return On Average Assets	16.0%	13.4%	11.3%	8.6%

(91) 22 4161 1566 yogesh.soni@incredresearch.com

More Reports

Market Data

Source: Bloomberg