Dr Reddys Laboratories's intrinsic value using Intellectual Capital analysis

Dr Reddys Laboratories

BSE : 500124

|

NSE : DRREDDY

Industry : Pharmaceuticals

|

ISIN : INE089A01023

|

FreeFloat : 75.00%

|

FnO : Yes

|

LotSize : 125

BSE SENSEX | BSE SENSEX 50 | Nifty 50 | Nifty50 Equal Weight | BSE 100 | BSE 100 Largecap TMC | BSE 200 | BSE 250 LargeMidcap | BSE Largecap | BSE LargeMidcap | Nifty 100 | Nifty 200 | Nifty LargeMidcap 250 | Nifty100 Equal Weight | Nifty Alpha Low Volatility 30 | Nifty Alpha Quality Low Volatility 30 | Nifty Alpha Quality Value Low Voltlty 30 | Nifty Pharma | BSE Dividend Stability | BSE Low Volatility | Nifty Alpha 50 | Nifty Growth Sectors 15 | Nifty Low Volatility 50 | Nifty100 Alpha 30 | Nifty100 Low Volatility 30 | Nifty200 Momentum 30 | BSE 100 ESG | BSE CARBONEX | BSE GREENEX | Nifty100 Enhanced ESG | Nifty100 ESG | BSE India Manufacturing

Intellectual Capital (IC)	33,450.08
Net Worth (NW)	16,667.40
Intrinsic Worth (IW)	50,117.48
Market Cap (MC)	86,257.17
Economic Value Added	275.77

Discount Rate	%
Liquidity Premium	%

Knowledge Basis (IC/IW)	66.74%
IC Gross Margin (EBITDA/IC)	12.23%
IC Net Margin (NPT/IC)	7.94%
Knowledge Turnover (Sales/IC)	0.57
Market to Intrinsic Value (MC/IW)	1.72

As Of	Intrinsic Value	Market Price
30 Sep 2020	Rs. 3,014.24	Rs. 5,187.80
22 Jan 2021	-	Rs. 5,036.90

Fundamental - medium term		Technical - near term		Combined outlook
EVA > 0 : Yes	Buy	10 DMA : Rs. 5,189.31	Sell	Avoid
KB > 50% : Yes		50 DMA : Rs. 5,055.44
0 < M2IV < 1 : No		Vol-Price trend : Falling

Question 3 - Is this stock undervalued?

Question 2 - Does this business have significant knowledge assets?

Question 1 - Is this business generating enough profits to cover its cost of capital?

* EVA is a registered trademark of Stern Stewart and Co.

Quarterly Results (Rs. Cr)

Quarter

Type*

Sales

Income

EBITDA

EBIT

PBT

PAT

NPT

Dec-17
C
3834.10
3877.10
835.70
564.20
547.00
294.20
184.10

Mar-18
C
3553.90
3598.80
608.50
332.20
314.40
272.10
291.90

Jun-18
C
3736.50
3786.90
819.20
540.50
521.00
476.10
415.80

Sep-18
C
3817.50
3945.70
618.04
590.18
588.10
507.40
528.60

Dec-18
C
3864.60
3966.90
906.90
616.60
592.50
491.40
463.70

Mar-19
C
4029.60
4112.90
902.20
615.00
590.50
455.40
433.20

Jun-19
C
3858.20
4288.30
1188.10
899.10
869.30
676.50
647.20

Sep-19
C
4812.80
4866.80
1129.50
816.40
786.10
1106.80
1152.00

Dec-19
C
4397.10
4464.40
-203.80
-490.70
-505.90
-538.40
-493.00

Mar-20
C
4448.90
4522.50
1033.30
759.20
736.20
781.10
654.80

Jun-20
C
4426.50
4513.60
1216.10
923.80
900.50
594.60
672.80

Sep-20
C
4910.90
4962.10
1214.60
898.10
872.90
771.80
783.80

* C - Consolidated, S - Standalone