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Model Note · DR. REDDY S LABORATORIES · 11 September 2026Page 1 of 2
Model Note
Prepared by the reader · not a MarketPing document
DR. REDDY S LABORATORIES Discounted cash flow · base FY26
DR. REDDY S LABORATORIES
Value per share, this model₹441
CMP 2026-09-10₹1,165.50
Difference(62.2)%
Growth the CMP implies45.0%/yr
This note states the assumptions and the arithmetic of one model of DR. REDDY S LABORATORIES, built on its filed FY26 consolidated statements. The value is the outcome of the assumptions below and nothing else; it is not a fair value, a target or a recommendation.
Assumptions
Input
This model
Filed reference
Revenue growth, 5 years
3% a year
FY26 3.2% · 5-yr CAGR 12.1%
EBITDA margin
19.1%
FY26 19.1% · 5-yr average 23.4%
Depreciation · capex, % of revenue
6.1% · 6.9%, fading to 1.2× depreciation
FY26 6.1% · 6.9%
Working capital, % of added revenue · tax
43.7% · 23%
160 working-capital days · effective 23.0%
Discount rate
11.00%
1-yr beta 0.52
After FY31
5% flat · mid-year discounting
—
Net debt · non-controlling interest · non-operating investments
₹4,757 · ₹0 · ₹0 cr
FY26 net debt ₹4,757 cr
Shares
83.50 crore
83.50 crore today
Source: SEBI results XBRL as filed with BSE/NSE, exchange prices; the reader's assumptions.
Projected cash flow to the firm
₹ crore
FY26
FY27
FY28
FY29
FY30
FY31
Revenue
33,700
34,711
35,753
36,825
37,930
39,068
growth %
3.2
3.0
3.0
3.0
3.0
3.0
EBITDA
6,454
6,630
6,829
7,034
7,245
7,462
Depreciation
(2,059)
(2,117)
(2,181)
(2,246)
(2,314)
(2,383)
NOPAT
3,384
3,475
3,579
3,686
3,797
3,911
less capex
(2,331)
(2,395)
(2,504)
(2,618)
(2,737)
(2,860)
less working-capital build
—
(442)
(455)
(469)
(483)
(497)
Free cash flow to firm
—
2,755
2,800
2,846
2,891
2,937
Present value
2,615
2,394
2,192
2,006
1,836
Source: the model; base year as filed.
Every figure is the reader's model over filed numbers · No rating, target or fair value is expressedmarketping.in
Model Note · DR. REDDY S LABORATORIES · 11 September 2026Page 2 of 2
From enterprise to equity
PV of the 5 explicit years
11,044
PV of the terminal value (73% of EV)
30,500
Enterprise value
41,544
less net debt
(4,757)
less non-controlling interest
0
add non-operating investments
0
Equity value
36,787
÷ 83.50 crore shares
₹441
Source: the model.
Sensitivity, ₹ per share
WACC ↓ · terminal growth →
4.0%
4.5%
5.0%
5.5%
6.0%
10.0%
457
493
537
590
657
10.5%
418
449
484
527
580
11.0%
385
411
441
476
518
11.5%
357
379
404
433
467
12.0%
332
351
372
396
425
Source: the model; n/a where terminal growth reaches the discount rate.
Statement
This note is the reader's own model over publicly filed information: SEBI results XBRL filed with BSE and NSE and exchange price data, assembled by MarketPing software; every assumption above is the reader's. It contains no research recommendation, no price target and no opinion by MarketPing on the merits of any security, and is not a research report within the meaning of the SEBI (Research Analysts) Regulations, 2014, Regulation 2(1)(w)(vii). Historical per-share figures are on the current share count. Where a figure is unavailable the table shows a dash rather than an estimate. Nothing here constitutes investment advice, an offer or a solicitation.
Every figure is the reader's model over filed numbers · No rating, target or fair value is expressedmarketping.in
