Dr. Reddy’s Laboratory

Industry Profile  :. Indian Pharmaceutical sector is among fastest growing market and it is third largest market by volume and thirteen by value. It is expected that Indian pharma industry will grow with 15% CAGR in between 2015-20. The Indian pharmaceutical industry is expected to become $55 billion by value till 2020 emerging as sixth largest pharmaceutical market by absolute size. India is largest suppler of generic drug global exports with 20% by volume. 80% of Anti retro-viral drugs used against AIDS all over world are supplied by Indian companies.

India maintain its lead over china in pharmaceutical export with 11.44% year on year growth to $12.91 billion. drug approval to Indian pharma from US FDA is also increase by nearly double but with substantial inspections, which is biggest problem for many Indian companies now.

All due to support from govt of India, the sector is thriving and surviving against global competition. The farmaceutical sector is permitted to receive 100% FDI under automatic rout and so the sector attracts FDI inflows about $ 14.53 billion in between April 2000 and December 2016. many Global companies like Abbott, GSK are investing in India.  UN backed Medicine Patent pool signed six sub license with Aurobindo, Cipla Disano, Emcure, Hetero Labs and Laurus Labs for manufacturing anti AIDS medicine for 112 developing countries.

Company Profile. :.   Hyderabad telengana based Multinational Pharmaceutical company. Founded in 1984 the company is having six plants. the company is linked with GSK. The company manufacturing and market 190 medication 60 API in 100 countries including UK, US, Russia, Germany, Brazil . Today the company is among top 3 API manufacture all over the world. Largest Player in Customs Pharmaceutical services segment.

Shareholding Pattern  :  Total 5 promoter entities hold 32.05% stake out of which part is pledged. Foreign Investors hold 38.75%. Mutual Funds hold 5.72%. Insurance companies hold 6.57%, 0.34% hold by Financials institutions. Remaining is held by public. so yes. company is Largely owned by institutional investors.

Financials and Ratios :

 2010-112011-122012-132013-14204-152015-162016-17
Revenue 5,424.106,821.508,575.709,879.5010,233.8010,452.5010,311.00
Net profit893.4912.401,265.501,932.81,679.401,354.501,384.10
Net profit Margin16.8413.531519.8616.7713.2614.24
EPS52.5153.56741139879.1482.88
Book Vale Per Share355.80396.10458.39548.12624.06680.27699.67
Dividend per share11.2513.751518202020
Dividend pay out21.3125.5420.1315.8420.2925.1324.22
ROE14.8413.5816.2520.7115.7911.6711.93
ROCE13.4112.5315.98 18.5914.2510.6111.35
ROA9.648.8210.5513.3210.207.718.41
Debt to equity0.240.230.200.290.290.270.20
Asset Turn Over57.2665.1770.3467.0560.8358.1359.09

Future Prospects.  : The company held by mainly Financial institutions. Promoter holding is low. But just like other pharma companies, the company is also facing actions from USFDA. though the future of generic medicine is good but strict actions from regulator is bad for company.

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About Ashutosh Tilak

Tracking Indian Capital Market since 2010. Finance Student, On this blog I am writing about finance and Investing. You can contact me analystashu@gmail.com or @androidashu & @InsideFinanc on twitter