DR REDDYS LABORATORIES LTD

RDYdata completeness 88%8 fiscal years on file

Data notes: no data for concept 'totalDebt'; no data for concept 'interestExpense'

The thesis, from the filings

DR REDDYS LABORATORIES LTD earns about 17% on invested capital, comfortably above its ~9% cost of capital, but has diluted owners by 402% over 5 years — a real edge showing up in the numbers. The estimate methods put fair value between $6.41 and $6.81 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$2.59B1$2.83B2$2.99B3$3.35B4$3.81B5
Net income$236M6$311M7$548M8$668M9$663M10
Operating cash flow$488M11$370M12$716M13$545M14$545M15
Capital expenditure$133M16$193M17$138M18$197M19$322M20
Free cash flow (derived)$355M11$177M12$578M13$348M14$223M15
Total debt
Cash & equivalents$203M21$196M22$70M23$85M24$172M25
Diluted shares166.3M166.4M166.5M166.8M834.5M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$46.77
your share of equity
Profit it earned you last year
$7.95
Free cash flow it threw off
$2.67
Debt you’d be carrying

10 shares is a claim on $46.77 of net worth that earned you $7.95 and generated $2.67 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
17% avg · 5y
FY21 11%FY22 13%FY23 20%FY24 20%FY25 18%

It earned about 17% on invested capital against a ~9% cost of capital — comfortably above the cost of funding, a moderate advantage.

seeing a moat in the numbers →
Management signal · capital allocation
+402% shares · 5y

Share count is up 402% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $6.41 and $6.81 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$6.41
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth1.6%
  • fcfBase$348M
DCF · Growth Exit 5Y
$6.59
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth1.6%
  • fcfBase$348M
Earnings Power Value
$6.81
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$548M
  • growthAssumed0.0%
Graham Number
$9.12
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years1.6%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $6.59
The three cases
Bear0.0%$6.16
Base1.6%$6.59
Bull6.6%$8.12

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 1.6%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 20-F · period ending 2021-03-31 · accession 0001575872-21-000138 (Revenue)
  2. 20-F · period ending 2022-03-31 · accession 0001575872-22-000576 (Revenue)
  3. 20-F · period ending 2023-03-31 · accession 0001575872-23-000951 (Revenue)
  4. 20-F · period ending 2024-03-31 · accession 0001575872-24-000660 (Revenue)
  5. 20-F · period ending 2025-03-31 · accession 0001575872-25-000393 (Revenue)
  6. 20-F · period ending 2021-03-31 · accession 0001575872-21-000138 (ProfitLoss)
  7. 20-F · period ending 2022-03-31 · accession 0001575872-22-000576 (ProfitLoss)
  8. 20-F · period ending 2023-03-31 · accession 0001575872-23-000951 (ProfitLoss)
  9. 20-F · period ending 2024-03-31 · accession 0001575872-24-000660 (ProfitLoss)
  10. 20-F · period ending 2025-03-31 · accession 0001575872-25-000393 (ProfitLossAttributableToOwnersOfParent)
  11. 20-F · period ending 2021-03-31 · accession 0001575872-21-000138 (CashFlowsFromUsedInOperatingActivities)
  12. 20-F · period ending 2022-03-31 · accession 0001575872-22-000576 (CashFlowsFromUsedInOperatingActivities)
  13. 20-F · period ending 2023-03-31 · accession 0001575872-23-000951 (CashFlowsFromUsedInOperatingActivities)
  14. 20-F · period ending 2024-03-31 · accession 0001575872-24-000660 (CashFlowsFromUsedInOperatingActivities)
  15. 20-F · period ending 2025-03-31 · accession 0001575872-25-000393 (CashFlowsFromUsedInOperatingActivities)
  16. 20-F · period ending 2021-03-31 · accession 0001575872-21-000138 (PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities)
  17. 20-F · period ending 2022-03-31 · accession 0001575872-22-000576 (PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities)
  18. 20-F · period ending 2023-03-31 · accession 0001575872-23-000951 (PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities)
  19. 20-F · period ending 2024-03-31 · accession 0001575872-24-000660 (PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities)
  20. 20-F · period ending 2025-03-31 · accession 0001575872-25-000393 (PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities)
  21. 20-F · period ending 2021-03-31 · accession 0001575872-21-000138 (CashAndCashEquivalents)
  22. 20-F · period ending 2022-03-31 · accession 0001575872-22-000576 (CashAndCashEquivalents)
  23. 20-F · period ending 2023-03-31 · accession 0001575872-23-000951 (CashAndCashEquivalents)
  24. 20-F · period ending 2024-03-31 · accession 0001575872-24-000660 (CashAndCashEquivalents)
  25. 20-F · period ending 2025-03-31 · accession 0001575872-25-000393 (CashAndCashEquivalents)