Intrinsic Valuation of: DRREDDY
Free Cash Flow Average and Growth over past 5Y Key Statistics
Year FCF FCF (FCF/Revenue)
2020 - - EPS (FY) 50 Market Cap ₹1,113B
2021 - - (-) P/E Ratio 27 Total Asset ₹493B
2022 ₹9B - (-) Net Income ₹57B Total Debt ₹4B
2023 ₹40B 341.6% (285.1%) EBITDA ₹97B Total Liab ₹156B
2024 ₹18B -55.0% (-60.4%) Opr Margin 22.12 Debt/Equity 0.01
2025 ₹12B -33.2% (-42.7%) PreTax Margin 21.25 BV/Share 270
5Y Average FCF ₹20B 15.0% (60.7%)
Overall Market Assumptions:
Assumptions: P/E for No-Growth Company: 7.0
Perpetual Growth Rate (g): 2.48% Historical US Bond Yield: 4.40%
Discount Rate (WACC): 7.01% Current US Bond Yield: 3.48%
Forcasting Future Free Cash Flow for next 6Y Modified Benjamin Graham's Intrinsic Value
Year FCF Projection (15.0%)
2026 ₹17B MBG Intrinsic Value ₹450
2027 ₹19B
2028 ₹20B
2029 ₹22B
2030 ₹23B
2031 ₹24B
Terminal Value ₹534B Net Worth/Share ₹405
DCF Valuation DCF Valuation "What If" Scenario Table
Enterprise Value ₹453B Growth Rate
(+) Cash & Cash Equivalents ₹15B ₹557 1.5% 2.0% 2.5% 3.0% 3.5%
(-) Total Debt ₹4B WACC 6.5% 525 570 627 701 798
Equity Value ₹464B 7.1% 466 501 543 595 661
Shares Outstanding 832,594,805 7.8% 420 447 480 518 566
8.4% 382 404 429 459 494
DCF Intrinsic Value ₹557 9.0% 350 368 388 411 439
Analyzed by QuantJuice (2025)