Investor Diary Expert Stock Analysis Excel (V-3)

http://www.investordiary.in/

HOW TO USE THIS SPREADSHEET?

Step 1 - This spreadsheet works only on Screener.in. The first step is to create a free account here - https://www.screener.in/register/

Step 2 - After creating your account, while you are logged in to Screener.in website, visit this page - https://www.screener.in/excel/ -
and upload this excel file.
Step 3 - Visit the home page of Screener.in and choose a company of your choice. Once you do that, you will see details of your
chosen company. Scroll down and come to the first financial statement table called "Quarterly Results" and click on "View
Consolidated". Now, all data you see for this company will be consolidated.

Step 4 - Scroll back to the top of the page, and you will see a button "Export to Excel" on the right side. Click the button and the
company's financial data will be exported in an excel file in the exact format as "Investor Diary Stock Analysis Excel".
Now onwards, any excel you export for any company on Screener.in will be downloaded in this very format.

IMPORTANT INSTRUCTIONS?
1. All financial data of your chosen company will be automatically updated in the sheet you download.
2. You may update the sheet and add your own analysis, formulae etc. and then upload again to Screener.in site using the Step 2 mentioned
above. But DON'T touch the sheet titled "Data Sheet" because this will cause errors in your future downloads.
3. I have added Comments and Instructions wherever necessary so as to explain the concepts. Read those carefully before working on the sheet.
4. This sheet is not a replacement of the work required to read annual reports as part of the analysis process. So please do that along with working
on this sheet. You may sometime find some discrepancy in numbers (though rare), but you will know this only when you read annual reports.
5. I could not find a bug/errors in this spreadsheet, but if you notice some, please email me at - inverstordiary.vishnu@gmail.com - and I will try to
fix the same and update the sheet
6. This excel won't work for banking and financial services companies.

Note: All data is sourced from Screener.in

click here for the explanation
Most investors in the stock market wonder in which stock they should invest because remember we have almost 6000 stocks
So you can use my Winner's list of stocks to generate your Investment Ideas.

Let's make this process simple for you:

Step-1: Click Here To Get Multi-Bagger List Of Stocks

Step-2: Kick out stocks that are out of your circle of competence. Don't worry if you have to kick ou

Step-3: With the remaining stocks, do the complete Stock Analysis by using this excel sheet.

Tip-1: You can Register your Email id with screener.in and can get updates by Email
Tip-2: In the search query, you can customize it as per your requirements, for example I used Market Capitalization > 500 (in

Click Here: List Of 52-Week Low Stocks In India

Click Here: IPO Historic Table

(High Quality Stocks)---List Of Stocks That Passed Our 2-Minute Test In India

3M India Cera Sanitary. Gulf Oil Lubric. Orient Refrac. Tide Water Oil
Abbott India Colgate-Palm. Hawkins Cookers P & G Hygiene TTK Prestige
Accelya Kale CRISIL Honeywell Auto P I Inds. V-Guard Inds.
AIA Engg. Cummins India ICRA Page Industries Vinati Organics
Ajanta Pharma Cyient Indraprastha Gas Persistent Sys VST Inds.
Akzo Nobel DFM Foods Jyothy Lab. Poly Medicure Whirlpool India
Alembic Pharma Dhanuka Agritech Kajaria Ceramics Relaxo Footwear Zensar Tech.
Amara Raja Batt. Divi's Lab. Kansai Nerolac Sanofi India Zydus Wellness
Amrutanjan Healt Dr Lal Pathlabs Kewal Kir.Cloth. Sheela Foam Galaxy Surfactant
Astral Poly eClerx Services L & T Infotech Solar Inds. Asian Paints
Atul Auto Elantas Beck La Opala RG Sonata Software Avenue Super.
Avanti Feeds Endurance Tech. Marico Sun TV Network Bajaj Auto
Berger Paints FDC Mayur Uniquote Supreme Inds. Britannia Inds.
Bombay Burmah Foseco India Mindtree Swaraj Engines Dabur India
Cadila Health. G M Breweries MRF Symphony Eicher Motors
CARE Ratings Gabriel India Navneet Educat. Syngene Intl. Godrej Consumer
Castrol India Gillette India NESCO Tata Elxsi HCL Technologies
Century Ply. GlaxoSmith C H L Oracle Fin.Serv. Thyrocare Tech. Hero Motocorp

Financial Services Companies Are Not Included In This List

 http://www.investordiary.in/

r we have almost 6000 stocks to select from.

y if you have to kick out a lot of stocks in the process.

this excel sheet.

Market Capitalization > 500 (in crores), you can feed in, higher or lower figure.

n India

Hind. Unilever
Hind.Zinc
Infosys
ITC
Maruti Suzuki
Nestle India
pidilite industries
TCS
Tech Mahindra
Titan Company
Wipro
Assoc.Alcohols
Control Print
Cupid
Jenburkt Pharma
Aurabindo Pharma
Balkrishna Ind
CCL Products
 Investor Diary Stock Analysis Excel
http://www.investordiary.in/
Basic Company Details
Parameters Details
Company DR REDDYS LABORATORIES LTD
Current Stock Price (Rs) 4460
Face Value (Rs) 5
No. of Shares (Crore) 17
Market Capitalization (Rs Crore) 74257

Key Financials - Trend

Parameters Details

Sales Growth (9-Year CAGR) 6.89%

Profit Before Tax Growth (9-Year CAGR) 3.93%

Net Profit Growth (8-Year CAGR) 4.05%
Average Debt/Equity (5-Years, x) 0.23
Average Return on Equity (5-Years) 11.30%
Average P/E (5-Years, x) 31.39
Latest P/E (x) 23.88
 DR REDDYS LABORATORIES LTD
http://www.investordiary.in/ 2-MINUTE TEST PASS

1 Does the firm pass minimum quality hurdle? YES

Avoid low market cap (minimum 500 crores) and IPO companies

2 Has the firm ever made an operating profit? YES

3 Does the company generate consistent cash flow from operations? YES

4 Are returns on equity consistently above 15% with reasonable leverage? YES

5 Is earnings growth consistent or erratic? CONSISTENT

6 How clean is the balance sheet? LOW-DEBT

If financial leverage ratio above 4 or debt-to-equity ratio above 1
a Is the firm in a stable business? CONSISTENT

b Has debt been going down or up as a percantage of total assets? GOING DOWN

c Do you understand the debt? YES

7 Does the firm generate free cash flow? YES

8 How much other is there?(One-time charges, etc) NONE

9 Has the number of shares outstanding increased markedly over the past several years? NO
Assuming no big acquisitions, if shares outstanding are consistently increasing around
by more than 2% per year, think long and hard before investing the firm
 ENTER MANUALLY
PASS click here for the explanation
FAIL

Market Capitalization (Rs Crore) 74257

Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
2265 2773 3008 2941 1617 1429 2425 1984 2981 3157

1378 1970 2524 3263 2144 1803 2870 2984 3570 2811

24% 25% 24% 17% 11% 8% 14% 13% 11% 11%

29% 19% -9% -39% -27% 106% 4% -4% 12%

NET PROFITS CAGR 3-YR 4% 5-YR 11% 7-YR -1% 10-YR 4%

FINANCIAL LEVERAGE= 1.54 DEBT TO EQUITY RATIO= 0.1747064 ICR 37.35

0.28 0.28 0.23 0.16 0.23 0.23 0.17 0.10 0.11 0.11

FREE CASH FLOW TO SALES 10.34%

658.5 1137.2 894.5 -1802.2 542.5 2049.6 3560.1 956.1 2001.5

Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
NSI -3535444 %change 0.16% 0.16% 0.13% -2.85% 0.10% 0.09% 0.06% 0.08% 0.07%
No. of Equity Shares 16.98 17.01 17.04 17.06 16.57 16.59 16.61 16.62 16.63 16.64
New Bonus Shares 0 0 0 0 0 0 0 0 0 0
Face value 5 5 5 5 5 5 5 5 5 5
 NONE
FEW
A LOT
CONSISTENT
CYCLICAL
ERRATIC

CONSISTENT
CYCLICAL
ERRATIC
 DEBT-FREE
LOW-DEBT
MODERATELY-LOW DEBT
MODERATE DEBT
MODERATELY-HIGH DEBT
HIGH-DEBT

CONSISTENT

YES
NO
 BALANCE SHEET ANALYSIS WITH FLOW-CHART
SHAREHOLDERS EQUITY AND LIABILITIES
http://www.investordiary.in/
STEP-1 STEP-2 STEP-3 STEP-4
Borrowings BS
Borrowings CFA
Financial Leverage
Debt to Equity ratio
Equity Share Capital Reserves BS Int. Coverage ratio OTH Liabilities BS
ESC. CFA Reserves CFA T.Assets/T.Liabilities OTH Liabilities CFA
2 minute test T.Debt/T.Assets
T.Debt/T.Equity
Int. coverage ratio
T.Debt/Cash Flow
T.Debt/F.Cash Flow

IT’S AMOST A
NO DILUTION GOOD INCREASED
DEBTFREE COMPANY

AVANTI FEEDS IS A DEBTFREE COMPANY AND IS NOT SELLING ANY ADDITIONAL SHARES. ITS RESERVES ARE INCREASING
ASSETS IS 51%, WHERE AS ITS NET TANGIBLE ASSETS + CWIP (CAPITAL WORK IN PROGRESS) IS ONLY 19%. ITS ACCOU

STRONG FINANCIAL HEALT

 BALANCE SHEET ANALYSIS WITH FLOW-CHART
ASSETS

STEP-5 STEP-6 STEP-7 STEP-8

Net Block BS
CWIP BS
Net Block CFA Invt BS OTH Assets BS A/R BS
CWIP CFA Invt CFA OTH Assets CFA A/R CFA
F.Asset Turnover Cash&Bank CFA A/R DAYS

IT’S A LOW CAPITAL CASH AS % OF

A/R IS 5
INTENSIVE TOTAL ASSETS IS DECREASED
DAYS
BUSINESS AROUND 51%

RESERVES ARE INCREASING CONSISTENTLY. IT'S RUNNING A LOW CAPITAL INTENSIVE BUSINESS, i.e., CASH AS A % OF TOTAL
ESS) IS ONLY 19%. ITS ACCOUNTS RECEIVABLE DAYS AND INTENTORY DAYS IMPROVED SIGNIFICANTLY OVER THE YEARS.

STRONG FINANCIAL HEALTH

 STEP-9

INV BS
INV CFA
INV Turnover
Days in INV

INV DAYS IS 40

e., CASH AS A % OF TOTAL

TLY OVER THE YEARS.
STRONG FINANCIAL HEALTH
AVERAGE FINANCIAL HEALTH
WEAK FINANCIAL HEALTH
 Balance Sheet http://www.investordiary.in/
DR REDDYS LABORATORIES LTD GOOD
Rs Cr Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 BAD
Equity Share Capital 85 85 85 85 83 83 83 83 83 83
Reserves 6,284 7,780 9,768 12,485 12,179 12,489 13,994 15,616 17,755 19,289
Borrowings 3,682 4,477 4,314 3,352 4,919 5,071 3,838 2,210 3,031 3,385
Other Liabilities 3,329 3,563 4,290 4,409 4,474 4,706 4,503 5,314 5,719 6,989
Total 13,380 15,906 18,457 20,330 21,655 22,349 22,418 23,223 26,588 29,746
click here for the explanation
Net Block 4,051 4,641 5,377 6,563 6,931 6,968 7,191 6,850 8,206 8,122
Capital Work in Progress 565 639 529 772 3,325 3,471 2,934 1,535 1,565 1,293
Investments 197 1,067 2,248 3,833 2,110 2,298 2,587 2,678 2,212 2,616
Other Assets 8,567 9,559 10,303 9,162 9,290 9,613 9,707 12,160 14,605 17,715
Total 13,380 15,906 18,457 20,330 21,655 22,349 22,418 23,223 26,588 29,746

Working Capital 5,238 5,996 6,013 4,754 4,816 4,906 5,204 6,846 8,887 10,726
Receivables 3,180 3,325 4,101 4,125 3,799 4,053 3,987 5,028 4,964 6,676
Inventory 2,171 2,419 2,570 2,558 2,853 2,909 3,358 3,507 4,541 5,088
USE COMMON FORM ANALYSIS AND FINANCIAL HEALTH WORKSHEET TO ANALYSE THE BALANCE SHEET
 Common Form Balance Sheet
Rs Cr Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
Equity Share Capital 1% 1% 0% 0% 0% 0% 0% 0% 0%
Reserves 47% 49% 53% 61% 56% 56% 62% 67% 67%
Borrowings 28% 28% 23% 16% 23% 23% 17% 10% 11%
Other Liabilities 25% 22% 23% 22% 21% 21% 20% 23% 22%
Total Liabilities 100% 100% 100% 100% 100% 100% 100% 100% 100%
Net Block 30% 29% 29% 32% 32% 31% 32% 29% 31%
Capital Work in Progress 4% 4% 3% 4% 15% 16% 13% 7% 6%
Investments 1% 7% 12% 19% 10% 10% 12% 12% 8%
Other Assets 64% 60% 56% 45% 43% 43% 43% 52% 55%
Total Assets 100% 100% 100% 100% 100% 100% 100% 100% 100%
Receivables 24% 21% 22% 20% 18% 18% 18% 22% 19%
Inventory 16% 15% 14% 13% 13% 13% 15% 15% 17%
Cash & Bank 15% 14% 10% 2% 2% 1% 1% 1% 8%

http://www.investordiary.in/
 AVG MIN MAX
Mar-22
0% 0% 0% 1%
65% 58% 47% 67%
11% 19% 10% 28%
23% 22% 20% 25%
100% 100% 100% 100%
27% 30% 27% 32%
4% 8% 3% 16%
9% 10% 1% 19%
60% 52% 43% 64%
100% 100% 100% 100%
22% 20% 18% 24%
17% 15% 13% 17%
8% 6% 1% 15%
 DR REDDYS LABORATORIES LTD GOOD
FINANCIAL HEALTH BAD
FINANCIAL LEVERAGE= 1.54 MORE THAN 4 IS RISKY
DEBT TO EQUITY RATIO= 0.17 LESS THAN 1 IS GOOD
INTEREST COVERAGE RATIO= 37.35 HIGHER IS BETTER (atleast greater than 10)

Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19

INVENTORY TURNOVER 5.45 5.55 5.85 6.09 4.98 4.91 4.60
DAYS IN INVENTORY 66.96 65.81 62.44 59.97 73.35 74.35 79.34
DAYS IN RECEIVABLES 98.11 90.47 99.64 96.71 97.67 103.58 94.20
FIXED ASSET TURNOVER 2.92 2.89 2.79 2.37 2.05 2.05 2.15
Total assets/Total liabilities= 1.91 1.98 2.15 2.62 2.31 2.29 2.69
Total debt/Total assets= 0.28 0.28 0.23 0.16 0.23 0.23 0.17
Total debt/Total equity= 0.58 0.57 0.44 0.27 0.40 0.40 0.27
Interest coverage ratio= 22.58 21.89 27.80 35.61 25.51 18.14 27.27
CFFO/capital expenditures= 1.5 1.8 1.4 0.5 1.4 3.5
Depreciation/CFFO= 39.9% 32.9% 30.1% 28.8% 47.9% 59.7% 39.5%
Capital expenditures/Depreciation= 2.03 1.82 2.52 3.84 1.17 0.72
TOTAL DEBT / CASH FLOW = 2.67 2.27 1.71 1.03 2.29 2.81 1.34
TOTAL DEBT / FREE CASH FLOW = 6.80 3.79 3.75 -2.73 9.35 1.87

click here for the explanation

 http://www.investordiary.in/

Mar-20 Mar-21 Mar-22 AVG MIN MAX

5.00 4.19 4.23 5.08 4.19 6.09
73.07 87.02 86.20 72.85 59.97 87.02
104.76 95.13 113.11 99.34 90.47 113.11
2.56 2.32 2.65 2.48 2.05 2.92
3.09 3.04 2.87 2.49 1.91 3.09
0.10 0.11 0.11 0.19 0.10 0.28
0.14 0.17 0.17 0.34 0.14 0.58
20.18 30.73 32.96 26 18 36
1.4 3.5 1.9 0.5 3.5
39.0% 34.4% 41.5% 39.4% 28.8% 59.7%
-0.50 2.13 0.69 1.60 -0.50 3.84
0.74 0.85 1.20 1.69 0.74 2.81
0.62 3.17 1.69 3.15 -2.73 9.35
LESS THAN 3 IS BEST
 INCOME STATEMENT
Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
SALES 11833 13415 15023 15568 14196 14281 15448 17517 19048 21545
% of Growth YoY 13% 12% 4% -9% 1% 8% 13% 9% 13%
COST OF GOODS SOLD 4,776 5248 5275.7 5292.8 5125.3 6198.3 6809.5 7267.2 9554.8 10142.7
GROSS PROFIT 7057 8,167 9,748 10,276 9,071 8,083 8,639 10,250 9,493 11,403
SELLING,GENERAL&ADMINISTRATIVE EXP 4,725 5,556 6,351 6,882 6,845 5,815 6,011 7,725 7,200 8,343
OPERATING INCOME BEFORE DEPRECIATION 2815 3421 3768 3880 2644 2506 3560 3147 4209 4322
DEPRECIATION,DEPLETION&AMORTIZATION 550 648 760 939 1027 1077 1135 1163 1229 1165
OPERATING PROFIT 2265 2,773 3,008 2,941 1,617 1,429 2,425 1,984 2,981 3,157
OTHER INCOME 147 170 260 295 172 155 381 670 335 555
INTEREST EXPENSE 100 127 108 83 63 79 89 98 97 96
PRETAX INCOME 2165 2,646 2,900 2,859 1,554 1,350 2,336 1,886 2,884 3,061
% of Growth YoY 22% 10% -1% -46% -13% 73% -19% 53% 6%
TOTAL TAXES 638 683 563 751 297 438 386 -140 932 879
NET PROFIT 1527 1,963 2,336 2,131 1,292 947 1,950 2,026 1,952 2,183
% of Growth YoY 29% 19% -9% -39% -27% 106% 4% -4% 12%
EPS 89.9 115 137 125 78 57 117 122 117 131
% of Growth YoY 28% 19% -9% -38% -27% 106% 4% -4% 12%
PRICE TO EARNINGS 19.6 22.2 25.4 24.3 33.8 36.5 23.7 25.6 38.5 32.7
PRICE 1767 2,564 3,489 3,035 2,632 2,081 2,780 3,121 4,516 4,295
DIVIDEND PAYOUT RATIO 16.7% 15.6% 14.6% 16.0% 25.7% 35.1% 17.0% 20.5% 21.3% 22.9%
MARKET CAP 29995 43,612 59,448 51,781 43,618 34,516 46,180 51,867 75,101 71,476
RETAINED EARNINGS 1272 1657 1996 1789 961 615 1618 1611 1536 1683
BUFFETT'S $1 TEST 2.8

EXPENSES
Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22

COST OF MATERIALS CONSUMED 3,622 3,581 3,842 3,854 3,820 4,081 4,770 5,531 6,869 7,796
POWER AND FUEL 335 320 339 315 330 329 329 315 321 391
OTHER MANUFACTURING EXPENSES 650 1,028 1,039 1,028 852 1,747 1,435 1,445 1,574 1,602
SELLING AND ADMIN 2,526 2,793 3,100 2,999 3,280 2,100 2,227 2,173 2,389 2,964
CHANGES IN INVENTORY 169 320 56 96 123 42 275 -24 791 354
EMPLOYEE BENEFIT EXPENSES 1,935 2,483 2,953 3,125 3,114 3,221 3,364 3,391 3,639 3,898
FINANCE COSTS 100 127 108 83 63 79 89 98 97 96
DEPRECIATION 550 648 760 939 1,027 1,077 1,135 1,163 1,229 1,165
OTHER EXPENSES 265 279 298 757 451 494 420 2,161 1,171 1,481
 GOOD INCOME STATEMENT
Trailing BAD Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19
22378 % % % % % % %
SALES 100% 100% 100% 100% 100% 100% 100%
COST OF GOODS SOLD 40.36% 39.12% 35.12% 34.00% 36.10% 43.40% 44.08%
GROSS MARGINS 59.64% 60.88% 64.88% 66.00% 63.90% 56.60% 55.92%
SELLING,GENERAL&ADMINISTRATIVE EXP 39.93% 41.41% 42.28% 44.20% 48.22% 40.71% 38.91%
EBITDA MARGINS 23.79% 25.50% 25.08% 24.92% 18.62% 17.55% 23.04%
DEPRECIATION,DEPLETION&AMORTIZATION 4.65% 4.83% 5.06% 6.03% 7.23% 7.54% 7.35%
4,433 OPERATING MARGINS 17.90% 19.41% 18.29% 17.00% 10.18% 8.92% 13.23%
1,125 OTHER INCOME/EXPENSE 1.24% 1.26% 1.73% 1.89% 1.21% 1.09% 2.47%
119 INTEREST EXPENSE 0.85% 0.94% 0.72% 0.53% 0.45% 0.55% 0.58%
4,315 PBT MARGINS 18.29% 19.73% 19.30% 18.36% 10.94% 9.46% 15.12%
TOTAL TAXES 5.39% 5.09% 3.75% 4.82% 2.09% 3.07% 2.50%
NET MARGINS 12.90% 14.63% 15.55% 13.69% 9.10% 6.63% 12.62%
3,110 EFFECTIVE TAX RATE 29.47% 25.81% 19.42% 26.27% 19.08% 32.43% 16.52%

187

23.9
click here for the explanation
4,460
Mar-20 Mar-21 Mar-22
% % %
100% 100% 100% AVG MIN MAX
41.49% 50.16% 47.08% 41.09% 34.00% 50.16%
58.51% 49.84% 52.92% 58.91% 49.84% 66.00%
44.10% 37.80% 38.72% 41.63% 37.80% 48.22%
17.97% 22.10% 20.06% 21.86% 17.55% 25.50%
6.64% 6.45% 5.41% 6.12% 4.65% 7.54%
7.50% 13.89% 12.08% 13.84% 7.50% 19.41%
3.82% 1.76% 2.57% 1.90% 1.09% 3.82%
0.56% 0.51% 0.44% 0.61% 0.44% 0.94%
10.76% 15.14% 14.21% 15.13% 9.46% 19.73%
-0.80% 4.89% 4.08% 3.49% -0.80% 5.39%
11.57% 10.25% 10.13% 11.71% 6.63% 15.55%
-7.44% 32.32% 28.71% 22.26% -7.44% 32.43%

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 Common Form P&L
Rs Cr Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
Sales 100% 100% 100% 100% 100% 100% 100% 100% 100%
Raw Material Cost 31% 27% 26% 25% 27% 29% 31% 32% 36%
Change in Inventory 1% 2% 0% 1% 1% 0% 2% 0% 4%
Power and Fuel 3% 2% 2% 2% 2% 2% 2% 2% 2%
Other Mfr. Exp 5% 8% 7% 7% 6% 12% 9% 8% 8%
Employee Cost 16% 19% 20% 20% 22% 23% 22% 19% 19%
Selling and Admin Cost 21% 21% 21% 19% 23% 15% 14% 12% 13%
Other Expenses 2% 2% 2% 5% 3% 3% 3% 12% 6%
Operating Profit 20% 19% 23% 22% 16% 16% 17% 14% 12%
Other Income 1% 1% 2% 2% 1% 1% 2% 4% 2%
Depreciation 5% 5% 5% 6% 7% 8% 7% 7% 6%
Interest 1% 1% 1% 1% 0% 1% 1% 1% 1%
Profit Before Tax 18% 20% 19% 18% 11% 9% 15% 11% 15%
Tax 5% 5% 4% 5% 2% 3% 2% -1% 5%
Net Profit 13% 15% 16% 14% 9% 7% 13% 12% 10%
Dividend Amount 2% 2% 2% 2% 2% 2% 2% 2% 2%
 GOOD
Mar-22 BAD AVG MIN MAX
100% 100% 100% 100%
36% 30% 25% 36% A common-size financial statement is displays line
items as a percentage of one selected or common
2% 1% 0% 4% figure. Creating common-size financial statements
2% 2% 2% 3% makes it easier to analyze a company over time and
7% 8% 5% 12% compare it with its peers. Using common-size
financial statements helps investors spot trends that a
18% 20% 16% 23% raw financial statement may not uncover.
14% 17% 12% 23%
7% 5% 2% 12%
14% 17% 12% 23%
3% 2% 1% 4%
5% 6% 5% 8%
0% 1% 0% 1%
14% 15% 9% 20%
4% 3% -1% 5%
10% 12% 7% 16%
2% 2% 2% 2%
ancial statement is displays line
age of one selected or common
mmon-size financial statements
nalyze a company over time and
ts peers. Using common-size
helps investors spot trends that a
tatement may not uncover.
 DR REDDYS LABORATORIES LTD
Rs Cr Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
Net Fixed Asset Turnover 3.1 3.0 2.6 2.1 2.1 2.2 2.5 2.5 2.6
NET MARGINS 13% 15% 16% 14% 9% 7% 13% 12% 10% 10%
DIVIDEND PAYOUT RATIO 17% 16% 15% 16% 26% 35% 17% 21% 21% 23%
Depreciation as % of NFA 14% 14% 14% 14% 15% 15% 16% 17% 15% 14%

SELF-SUSTAINABLE GROWTH RATE (SSGR) 21.72% 12.27% 1.60% -0.55% 1.40% 6.26% 5.90%

TRENDS: 3 YEARS 5 YEARS 7 YEARS 10 YEARS

SALES GROWTH RATE (CAGR) 11.7% 8.7% 5.3% 6.9%
PBT Growth (CAGR) 9.4% 14.5% 0.8% 3.9%
Net Profit Growth (CAGR) 3.8% 11.1% -1.0% 4.0%

Price to Earning 32.3 31.4 30.7 28.2

Receivables (CAGR) 18.8% 11.9% 7.2% 8.6%
Inventory (CAGR) 14.9% 12.3% 10.3% 9.9%
Check for long term vs short term trends here. Check if the growth over past 3 or
5 years has slowed down / improved compared to long term (7 to 10 years)
growth numbers.
 http://www.investordiary.in/

NFAT
NPM
DPR
DEP

FORMALA FOR SSGR = NFAT*NPM*(1-DPR)-DEP

click here for the explanation

 DR REDDYS LABORATORIES LTD
Rs Cr Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18
SALES 11833 13415 15023 15568 14196 14281
NET PROFIT 1527 1963 2336 2131 1292 947
NET MARGINS 13% 15% 16% 14% 9% 7%
DEPRECIATION,DEPLETION& 550 648 760 939 1027 1077
NFA 4051 4641 5377 6563 6931 6968
Depreciation as % of NFA 14% 14% 14% 14% 15% 15%
Net Fixed Asset Turnover 3.1 3.0 2.6 2.1 2.1
DIVIDEND PAYOUT RATIO 17% 16% 15% 16% 26% 35%
(1-DPR) 0.83 0.84 0.85 0.84 0.74 0.65
LTD
Mar-19 Mar-20 Mar-21 Mar-22
15448 17517 19048 21545
1950 2026 1952 2183
13% 12% 10% 10%
1135 1163 1229 1165
7191 6850 8206 8122
16% 17% 15% 14%
2.2 2.5 2.5 2.6
17% 21% 21% 23%
0.83 0.79 0.79 0.77
 Cash Flow Statement 2,000
DR REDDYS LABORATORIES LTD
1,500
Rs Cr Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Total
Cash from Operating Activity (CFO) 1,378 1,970 2,524 3,263 2,144 1,803 2,870 2,984 3,570 2,811 25,317 1,000
% Growth YoY 43% 28% 29% -34% -16% 59% 4% 20% -21% 500
Cash from Investing Activity -1,437 -1,604 -2,370 -1,610 -1,890 -1,483 -769 -495 -2,255 -2,565 -16,476
Cash from Financing Activity -157 -24 -433 -1,700 -369 -444 -2,133 -2,516 -30 -242 -8,048 -
CFFO
Net Cash Flow -216 342 -280 -47 -114 -124 -31 -27 1,286 3 792 Jan-13 Jan-15 Jan-17 Jan-19 Jan-21
-500 Cf-invest
CFO/Sales 12% 15% 17% 21% 15% 13% 19% 17% 19% 13% Cf-finance
-1,000
CFO/Net Profit 90% 100% 108% 153% 166% 190% 147% 147% 183% 129% 141.43%
Capex 1,311 1,386 2,368 3,947 1,261 821 -576 2,614 809 -1,500
FCF 659 1,137 895 -1,802 543 2,050 3,560 956 2,002 9,998 -2,000
Average FCF (3 Years) 2,173 -2,500 CFFO (Good, i.e., business is generating cash)
FCF Growth YoY 73% -21% -301% -130% 278% 74% -73% 109% CFI (Bad, i.e, instead of reinvesting in business, they are liquidating it)
-3,000
FCF/Sales 5% 8% 6% -13% 4% 13% 20% 5% 9%
FCF/Net Profit 34% 49% 42% -139% 57% 105% 176% 49% 92% 4,000
Cf-finance Cf-invest CFFO Net Profit CFFO Cash Flow From Operating Activities
3,500
Some Important Questions to Ask while Analysing Mar-22 -242 -2,565 2,811 Mar-22 2,183 2,811 Cash Flow From Investing Activities
the Cash Flow Statement of the Company Mar-21 -30 -2,255 3,570 Mar-21 1,952 3,570 3,000
Cash Flow From Financing Activities
What are the major sources of cash? Mar-20 -2,516 -495 2,984 Mar-20 2,026 2,984 2,500 Multiple Sources
Cash Flow From Operating Activities Mar-19 -2,133 -769 2,870 Mar-19 1,950 2,870 2,000 Net Profit
Is cffo sufficient to cover cap ex? Mar-18 -444 -1,483 1,803 Mar-18 947 1,803 CFFO Cash Flow From Operating Activities
1,500
YES Mar-17 -369 -1,890 2,144 Mar-17 1,292 2,144 1,000 Cash Flow From Investing Activities
Relationship between Net Profit & CFFO for past 10yrs? Mar-16 -1,700 -1,610 3,263 Mar-16 2,131 3,263 Cash Flow From Financing Activities
500
Consistent Mar-15 -433 -2,370 2,524 Mar-15 2,336 2,524 Multiple Sources
Mar-14 -24 -1,604 1,970 Mar-14 1,963 1,970 0
click here for the explanation Jan-13 Jan-15 Jan-17 Jan-19 Jan-21
Mar-13 -157 -1,437 1,378 Mar-13 1527 1,378 Consistent
In-Consistent
 DR REDDYS LABORATORIES LTD
PROFITABILITY
YEAR Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
RETURN ON CAPITAL EMPLOYED% 22.5% 22.5% 21.2% 18.5% 9.4% 8.1% 13.5% 11.1% 14.3% 13.9%

DUPONT-ANALYSIS
YEAR Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22

NET MARGIN% 12.9% 14.6% 15.6% 13.7% 9.1% 6.6% 12.6% 11.6% 10.2% 10.1%

ASSET TURNOVER 0.9 0.8 0.8 0.8 0.7 0.6 0.7 0.8 0.7 0.7

RETURN ON ASSETS% 11.41% 12.34% 12.66% 10.48% 5.97% 4.24% 8.70% 8.72% 7.34% 7.34%

FINANCIAL LEVERAGE 2.10 2.02 1.87 1.62 1.77 1.78 1.59 1.48 1.49 1.54

RETURN ON EQUITY% 24.0% 25.0% 23.7% 17.0% 10.5% 7.5% 13.9% 12.9% 10.9% 11.3%

FREE CASH FLOW TO SALES ANALYSIS

FREE CASH FLOW = CASHFLOW FROM OPERATIONS-CAPITAL SPENDING

YEAR Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22

CFFO (CASH FLOW STATEMENT) 1969.7 2523.5 3262.6 2144.4 1803 2870.4 2984.1 3570.3 2810.8

CAPITAL EXPENDITURE 1311.2 1386.3 2368.1 3946.6 1260.5 820.8 -576 2614.2 809.3

OWNER'S EARNINGS(FCFE) 658.5 1137.2 894.5 -1802.2 542.5 2049.6 3560.1 956.1 2001.5
 FREE CASH FLOW/SALES(%) 4.91% 7.57% 5.75% -12.70% 3.80% 13.27% 20.32% 5.02% 9.29%
MINIMUM 5% IS GOOD

PROFITABILITY MATRIX

FREE CASH FLOW TO SALES 10.34% HIGH LESS RISKY COMPANY

ROE<15% AND FREE CASH FLOW>5% ROE>15% AND FREE CASH FLOW>5%
RETURN ON EQUITY % 11.3%
GOOD FREE CASH FLOW BUT BAD ROE GREAT COMPANY
FREE CASH FLOW 5%

HIGH RISK COMPANY

ROE<15% AND FREE CASH FLOW<5% ROE>15% AND FREE CASH FLOW<5%

WORST COMPANY GOOD ROE BUT BAD FREE CASH FLOW

LOW
15%
RETURN ON EQUITY

PROTABILITY MATRIX GREAT COMPANY

PRICING POWER MOAT NONE STRENGTH

COST ADVANTAGE MOAT NONE NO MOAT
 COMPETETIVE ADVANTAGE PERIOD
FAVORABLE
LONG CAP LONGEST CAP

FAVORABLE COMPANY STRATEGY FAVORABLE COMPANY STRATEGY

BUT AND
UNFAVORABLE INDUSTRY STRUCTURE FAVORABLE INDUSTRY STRUCTURE

COMPANY STRATEGY

SHORTEST CAP SHORT CAP

1. PRICING POWER
2. LOW-COST
3. BOTH UNFAVORABLE COMPANY STRATEGY FAVORABLE INDUSTRY STRUCTURE
4. NONE AND BUT
UNFAVORABLE INDUSTRY STRUCTURE UNFAVORABLE COMPANY STRATEGY

UNFAVORABLE
UNFAVORABLE INDUSTRY STRUCTURE FAVORABLE

COMPETETIVE ADVANTAGE MATRIX SHORTEST CAP

GROWTH ADVANTAGE PERIOD

HIGH
HIGH PAT GROWTH HIGHEST PAT GROWTH
 HIGH COMPANY GROWTH MINDSET HIGH COMPANY GROWTH MINDSET
BUT AND
LOW INDUSTRY GROWTH HIGH INDUSTRY GROWTH

COMPANY GROWTH
MINDSET
LOWEST PAT GROWTH LOWER PAT GROWTH
1. AGGRESSIVE CAPACITY EXPANSION
2. INORGANIC GROWTH STRATEGY
3. OPERATING/FINANCIAL LEVERAGE LOW COMPANY GROWTH MINDSET LOW COMPANY GROWTH MINDSET
AND BUT
LOW INDUSTRY GROWTH HIGH INDUSTRY GROWTH

LOW
LOW INDUSTRY GROWTH HIGH

GROWTH ADVANTAGE MATRIX HIGHEST PAT GROWTH

MOAT GROWTH ADVANTAGE PERIOD

HIGH
GROWTH TRAP TRUE WEALTH CREATOR

HIGH GROWTH HIGH GROWTH

BUT AND
WEAK MOAT HIGH MOAT

TRANSITORY MULTIBAGGER ENDURING MULTIBAGGER

GROWTH
 GROWTH
WEALTH DESTROYER QUALITY TRAP

LOW GROWTH HIGH MOAT

AND BUT
WEAK MOAT LOW GROWTH

PERMANENT LOSS OF CAPITAL UNDERPERFORMER

WEAK
WEAK MOAT HIGH

MOAT GROWTH MATRIX TRUE WEALTH CREATOR

GOOD click here for the explanation
BAD

AVG MIN MAX

15.50% 8.10% 22.53%

AVG MIN MAX %ROE

11.7% 6.6% 15.6% 74.74%

0.7 0.6 0.9 -17.80%

8.9% 4.2% 12.7%

1.7 1.5 2.1 43.1%

15.7% 7.5% 25.0% 100%

`
GREAT COMPANY
GOOD FREE CASH FLOW B
GOOD ROE BUT BAD FREE
WORST COMPANY
GREAT COMPANY
GOOD FREE CASH FLOW BUT BAD ROE
GOOD ROE BUT BAD FREE CASH FLOW
WORST COMPANY
 DR REDDYS LABORATORIES LTD
RELATIVE VALUATION
CHEAP

1. EARNINGS YIELD
EXPENSIVE

☹
EARNINGS YIELD 4.19%

10 YEAR GOVT BOND YIELD 6.68% click here to know govt bond yield
click here for
YIELD SPREAD -2.49%

2. CASH RETURN

☹
CASH RETURN 2.99%

10 YEAR GOVT BOND YIELD 6.68%

YIELD SPREAD -3.69%

3. HISTORICAL PRICE TO EARNINGS RATIO

Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
P/E RATIO 19.6 22.2 25.4 24.3 33.8 36.5 23.7 25.6 38.5 32.7

☺
3 YR AVG P/E RATIO 32.3
5 YR AVG P/E RATIO 31.4
10 YR AVG P/E RATIO 28.2

TRAILING P/E RATIO 23.88

4. HISTORICAL PRICE TO SALES RATIO

Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
P/S RATIO 2.5 3.3 4.0 3.3 3.1 2.4 3.0 3.0 3.9 3.3
 ☹
3 YR AVG P/S RATIO 3.4
5 YR AVG P/S RATIO 3.1
10 YR AVG P/S RATIO 3.2

TRAILING P/S RATIO 3.32

5. HISTORICAL PRICE TO BOOK RATIO

Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
P/B RATIO 4.7 5.5 6.0 4.1 3.6 2.7 3.3 3.3 4.2 3.7

☹
3 YR AVG P/B RATIO 3.7
5 YR AVG P/B RATIO 3.4
10 YR AVG P/B RATIO 4.1

TRAILING P/B RATIO 3.83

 CHEAP WOW, IT'S CHEAP! ☺
EXPENSIVE IT'S EXPENSIVE ☹
click here for the explanation
 Dicounted Cash Flow Valuation
DR REDDYS LABORATORIES LTD

Initial Cash Flow (Rs Cr) 2,173 35,597

Want to use my fundamental growth YES 74,257
Years 1-10 48%
FCF Growth Rate 15.00%
Discount Rate 12.00%
Terminal Growth Rate 3.75%
click here for the expla
Net Debt Level (Rs Cr) (1,651)

Year FCF Growth Present Value

1 2,361 8.69% 2,108
2 2,567 8.69% 2,046
3 2,790 8.69% 1,986
4 3,032 8.69% 1,927
5 3,295 8.69% 1,870
6 3,549 7.70% 1,798
7 3,787 6.71% 1,713
8 4,004 5.73% 1,617
9 4,194 4.74% 1,512
10 4,351 3.75% 1,401

If you don't like using past growth rates, then you can use fundamental growth rates which are more dynamic and forwardin
reinvestment ( i.e., how much money you retain in the business ) and return of equity (i.e., the return you generat

GROWTH RATE= (1- Payout Ratio) x Return on equity

ROE X (1- PAYOUT RATIO) = GROWTH

YEAR ROE (1-DPR) GROWTH
CURRENT 11.27% 77.13% 8.69%
1 11.27% 77.13% 8.69%
2 11.27% 77.13% 8.69%
3 11.27% 77.13% 8.69%
4 11.27% 77.13% 8.69%
5 11.27% 77.13% 8.69%
6 12.01% 66.70% 7.70%
7 12.76% 56.28% 6.71%
8 13.51% 45.85% 5.73%
9 14.25% 35.43% 4.74%
10 15.00% 25.00% 3.75%
TERMINAL (STABLE) 15.00% 25.00% 3.75%
What IF, Initial FCF Is Negative, Then Make Your Best Case Assumptions,

YEAR CFFO CAP EX FCF

CURRENT 2811 50% 1405
1 3055 50% 1528
2 3320 50% 1660
3 3609 50% 1805
4 3923 50% 1961
5 4263 50% 2132
6 4592 50% 2296
7 4900 50% 2450
8 5181 50% 2590
9 5426 50% 2713
10 5630 50% 2815

1. SIZE 74257
2. FINANCIAL HEALTH STRONG FINANCIAL HEALTH
3. EARNINGS GROWTH CONSISTENT
4. ECONOMIC MOAT NO MOAT
5. MANAGEMENT HIGH QUALITY MANAGEMENT
6. COMPLEXITY LOW

ESTIMATING THE RISKINESS IN CASH FLOWS (DISCOUNT RATE)

Valuation
IES LTD
GOOD
BAD
WOW, IT'S CHEAP! ☺
DCF Value (As calculated in cell B29)
Current Market Cap
DCF as % of Current Mkt Cap
IT'S EXPENSIVE
☹
click here for the explanation
Final Calculations

☹
Terminal Year 4,514
PV of Year 1-10 Cash Flows 17,979
Terminal Value 17,619
Total PV of Cash Flows 35,597
Current Market Cap (Rs Cr) 74,257
Share Price 4460
Value Per Share 2138

growth rates which are more dynamic and forwarding looking. Growth in net profit is the function of
ss ) and return of equity (i.e., the return you generate on incremental retained earnings).

TH RATE= (1- Payout Ratio) x Return on equity

EXPECTED DIVIDEND INCOME ANALYSIS (FUNDAMENTAL GROWTH)

YEAR EPS DPR Dividends Pr. Value
CURRENT 186.8 22.87% 42.72
1 203.0 22.87% 46.43 41.45
2 220.6 22.87% 50.46 40.23
3 239.8 22.87% 54.85 39.04
4 260.6 22.87% 59.61 37.89
5 283.3 22.87% 64.79 36.77
6 305.1 33.30% 101.59 51.47
7 325.6 43.72% 142.35 64.39
8 344.2 54.15% 186.39 75.28
9 360.5 64.57% 232.81 83.95
10 374.0 75.00% 280.53 90.32
Expected Dividend Income From This Stock In Next The 10 Years 1220 560.80

Current Share Price 4460

Estimated 10th Year Share Price 7481
Estimated 10th Year Share Price + Dividends 8701
 Total Return 6.91%

Investment Return = % EPS Growth + Dividend Income

Investment return = 7.19% 1.60%

Investment return = 8.80%

DIVIDENDS IN CRORES = 20310

Capital Gains + Dividends 188045

Estimated 10th Year Market Cap 124556

Discounted Estimated 10th Year Market Cap 40104

Discounted Dividends 561

Discounted Value 40664

Disounted Earnings Valuation 2442

 GROWTH RATE (MANUALLY INPUTTED)
ROE X (1- PAYOUT RATIO) = GROWTH EXPECTED DIVIDEND INCOME ANALYS
YEAR ROE (1-DPR) GROWTH YEAR
CURRENT 11.27% 133.14% 15.00% CURRENT
1 11.27% 133.14% 15.00% 1
2 11.27% 133.14% 15.00% 2
3 11.27% 133.14% 15.00% 3
4 11.27% 133.14% 15.00% 4
5 11.27% 133.14% 15.00% 5
6 11.27% 133.14% 15.00% 6
7 11.27% 133.14% 15.00% 7
8 11.27% 133.14% 15.00% 8
9 11.27% 133.14% 15.00% 9
10 11.27% 133.14% 15.00% 10
Expected Dividend Income From This Stock In Ne

Estimated 10th Y
Estimated 10th Year Share P
 Estimated 10th Y

Discounted Estimated 10th

Disounted Ea
IDEND INCOME ANALYSIS (MANUAL GROWTH)
EPS DPR Dividends Pr. Value
186.8 -33.14% -61.90
214.8 -33.14% -71.19 -63.56
247.0 -33.14% -81.86 -65.26
284.0 -33.14% -94.14 -67.01
326.6 -33.14% -108.26 -68.80
375.6 -33.14% -124.50 -70.65
432.0 -33.14% -143.18 -72.54
496.8 -33.14% -164.66 -74.48
571.3 -33.14% -189.35 -76.48
657.0 -33.14% -217.76 -78.53
755.5 -33.14% -250.42 -80.63
ome From This Stock In Next The 10 Years -1445 -717.93

Current Share Price 4460

Estimated 10th Year Share Price 7481
mated 10th Year Share Price + Dividends 6036
 Total Return 3.07%

Investment Return = % EPS Growth + Dividend Income

Investment return = 15.00% -2.24%

Investment return = 12.76%

DIVIDENDS IN CRORES = -24064

Capital Gains + Dividends 143671

Estimated 10th Year Market Cap 124556

counted Estimated 10th Year Market Cap 40104

Discounted Dividends -718

Discounted Value 39386

Disounted Earnings Valuation 2366

 Dhandho Intrinsic Value Calculation
Read the book - The Dhandho Investor by Mohnish Pabrai

DR REDDYS LABORATORIES LTD DR REDDYS LAB

Dhandho - Worst Case Dhandho -
Year FCF (Rs Cr) PV of FCF (Rs Cr) Assumed FCF Growth Year
0 Excess Cash (Latest) 5,035 Year 1-3 15% 0
1 FY18 2,498 2,231 Year 4-6 10% 1
2 FY19 2,873 2,291 Year 7-10 5% 2
3 FY20 3,304 2,352 Discount Rate 12% 3
4 FY21 3,635 2,310 4
5 FY22 3,998 2,269 Last 5-Years' CAGR 5
6 FY23 4,398 2,228 Sales 9% 6
7 FY24 4,618 2,089 PBT 15% 7
8 FY25 4,849 1,958 FCF -202% 8

☹
9 FY26 5,091 1,836 9
10 FY27 5,346 1,721 10
10 53,457 17,212 10
Intrinsic Value 43,531 Intrinsic Va
Current Mkt. Cap. 74,257 Current Mkt. C
Premium/(Discount) 71% Premium/(Discou
Value Per Share 2,614 Value Per Sh

You have to adjust the initial free cash flows in case if they are negative.
lue Calculation CHEAP EXPENSIVE
vestor by Mohnish Pabrai
WOW, IT'S CHEAP! ☺
DR REDDYS LABORATORIES LTD
Dhandho - Best Case
FCF (Rs Cr) PV of FCF (Rs Cr)
IT'S EXPENSIVE
Assumed FCF Growth
☹
Excess Cash (Latest) 5,035 Year 1-3 20%
FY18 2,607 2,328 Year 4-6 15%
FY19 3,128 2,494 Year 7-10 10%
FY20 3,754 2,672 Discount Rate 12%
FY21
FY22
4,317
4,965
2,744
2,817
click here for the explanation
FY23 5,710 2,893
FY24 6,281 2,841
FY25 6,909 2,790

☹
FY26 7,600 2,740
FY27 8,360 2,692
125,393 40,373
Intrinsic Value 72,419
Current Mkt. Cap. 74,257
Premium/(Discount) 3%
Value Per Share 4,350

they are negative.

 Total Returns Model
DR REDDYS LABORATORIES LTD
Particulars Mar/13 Mar/14 Mar/15 Mar/16 Mar/17 Mar/18 Mar/19 Mar/20 Mar/21 Mar/22
Net Profit (Rs Crore) 1,527 1,963 2,336 2,131 1,292 947 1,950 2,026 1,952 2,183
Net Profit Margin 13% 15% 16% 14% 9% 7% 13% 12% 10% 10%
Return on Equity 24% 25% 24% 17% 11% 8% 14% 13% 11% 11%
Calculations (Enter values only in black cells)
Estimated CAGR in Net Profit over next 10 years 7.19%
GOOD WOW, IT'S CHEAP! ☺
Estimated Net Profit after 10 years (Rs Cr)
Current P/E (x)
Exit P/E in the 10th year from now (x, Estimated)
6,228
23.9
20.0
BAD IT'S EXPENSIVE ☹
Esti. Market Cap (10th year from now; Rs Cr) 124,556
Cost of Capital/Discount Rate 12%

☹
Discounted Value (Rs Cr) 40,664
Current Market Cap (Rs Cr) 74,257

If you invest 1 lakh today, in 10 yrs it will grow into 188045

Investment Return from this stock in the next 10 years 8.80%
Speculative Return from this stock in the next 10 years -1.88%
Capital Gains 5.31%
Dividend Return 1.60% Total
+ Speculative Return =
Total Return = Investment Return + Speculative Return 6.91% Investment Return Return
PEG RATIO 3.32 7.19% 1.60% + -1.88% = 6.91%
7.2%
DANGER! DANGER! You have Inputted The Most Unrealistic And Irrational Growth Rate
ATTENTION PLEASE! Make Sure That Capital Gains Are Atleast 15%
CAGR (9-Yr) CAGR (5-Yr)
4% 11%

ATTENTION PLEASE!
Make Sure That Capital Gains Are Atleast
15%

Multi-Bagger Gains %

146%
 Intrinsic Value Range UNDER-VALUED
DR REDDYS LABORATORIES LTD OVER-VALUED
Market Cap Value Per Share
Lower Higher Lower Higher
Dhandho 43,531 72,419 2,614.49 4,349.56
DCF 35,597 2,138.00
Total Return 40,664 2,442.34
PE < G Price 22,365 1,343.26
Current Market Cap. 74,257 share price 4,459.95 W.Avg Intrinsic Value

ENTRY PRICE Implied PE ASSUMPTIONS

PHASE-1 2320 12.42 No.Of Shares Bought in Phase-1
PHASE-2 2062 11.04 No.Of Shares Bought in Phase-2
PHASE-3 1933 10.35 No.Of Shares Bought in Phase-3
Total No.Of Shares Bought
EXIT PRICE Implied PE
PHASE-1 5437 29.11 Capital Gains by selling in Phase-1
PHASE-2 5872 31.44 Capital Gains by selling in Phase-1
PHASE-3 6524 34.93 Capital Gains by selling in Phase-1
Total Capital Gains (PROFITS)
 LET'S CALCULATE THE RETURN YOU CAN GENERATE

YOUR INVESTMENT = 30,000

Phase-1 Phase-2 Phase-3

10000 10000 10000

2578

TIONS
ught in Phase-1 4
ught in Phase-2 5
ught in Phase-3 5
ares Bought 14

elling in Phase-1 15,976

elling in Phase-1 18,055
elling in Phase-1 21,172 Before 30,000
ins (PROFITS) 55,203 184.01% After 85203
 25976
28054.55
31172
85203

Total Return
 10,000

182%

2,105
5944
DR REDDYS LABORATORIES LTD
SCREENER.IN
Narration Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22
Sales 4,427 4,911 4,942 4,768 4,945 5,787 5,338 5,475 5,233 6,332
% Growth YOY 12% 18% 8% 15% 6% 9%
Expenses 3,305 3,755 4,403 3,715 4,211 4,427 4,123 5,024 4,292 4,433
Operating Profit 1,121 1,156 539 1,053 735 1,360 1,216 451 941 1,899
Other Income 95 59 86 101 125 230 74 132 863 55
Depreciation 292 317 311 309 284 294 294 293 302 309
Interest 23 25 19 30 19 23 22 32 35 31
Profit before tax 901 873 295 815 556 1,273 974 259 1,468 1,614
PBT Margin 20% 18% 6% 17% 11% 22% 18% 5% 28% 25%
% Growth YOY -38% 46% 230% -68% 164% 27%
Tax 306 101 267 258 175 277 265 162 279 499
Net profit 595 772 28 557 380 996 709 97 1,189 1,114
% Growth YOY -36% 29% 2442% -83% 213% 12%
OPM 25% 24% 11% 22% 15% 23% 23% 8% 18% 30%
 NEVER PLACE YOUR BUY ORDER WITHOUT GOING THROUGH THIS CHECKLIST

STUDY ITS PRODUCTS/SERVICES CAREFULLY,CHECK WHETHER THEY EXIST IN REAL WORLD AND WHAT
THEY CLAIM ABOUT THEIR PRODUCT/SERVICE IS TRUE OR MAKES SENSE.

READ ATLEAST 10 YEARS OF ANNUAL REPORTS SLOWLY AND SKEPTICALLY.

ARE YOU EXITED BY STORYLINE AND IGNORING WARNING SIGNS?

IS IT JUST LOW P/E OR LOW VALUATION THAT IS TEMPTING YOU TO INVEST? BUY CHEAP STOCKS, BUT
NOT CHEAP QUALITY STOCKS.

STAY AWAY FROM ACQUISITION HUNGRY COMPANIES.

IF YOU FIND ANY RED FLAGS IN YOUR ANALYSIS, NEVER IGNORE, DIG DEEPER.

IF RESULTS ARE GETTING DELAYED.STAY AWAY.

STAY AWAY FROM COMPANIES WHERE INSIDERS ARE SELLING LARGE STAKES.

PROMOTER SHARES ARE PLEDGED,THAT IS ALMOST EQUAL TO SELLING SHARES, SO BE WARY.

IF COMPANY IS FACING TROUBLES COLLECTING CASH (INCREASING RECEIVABLE DAYS).STAY AWAY.

ANALYSE RELATED PARTY TRANSACTIONS CAREFULLY, ESPECIALLY LOANS.

READ 10-YEARS OF REVENUE RECOGNITION POLICIES AND WATCH OUT FOR ANY POLICY CHANGES.

READ 10-YEARS OF AUDITOR REPORTS.

BE WARY WITH COMPANIES NOT CONDUCTING CONFERENCE CALLS AND NO CHAIRMANS LETTER IN THE
ANNUAL REPORT.

NO FINANCIAL DATA ABOUT ACQUIRED COMPANIES, WATCH OUT.

NEVER INVEST IN COMPANIES WITH HIGH POLITICAL CONNECTION.

COMPANY NAME DR REDDYS LABORATORIES LTD
LATEST VERSION 2.10 PLEASE DO NOT MAKE ANY CH
CURRENT VERSION 2.10

META
Number of shares 16.65
Face Value 5
Current Price 4459.95
Market Capitalization 74257.1

PROFIT & LOSS

Report Date Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18
Sales 11832.6 13415.3 15023.3 15568.3 14196.1 14281
Raw Material Cost 3,622.30 3,580.50 3,842.20 3,854.20 3,819.80 4,081.00
Change in Inventory 168.50 319.60 55.80 95.70 123.30 41.50
Power and Fuel 335.4 319.9 339.1 315.2 330.1 329.3
Other Mfr. Exp 649.8 1028 1038.6 1027.7 852.1 1746.5
Employee Cost 1934.7 2483.4 2952.6 3125.2 3114.2 3221
Selling and admin 2525.7 2793.4 3100.3 2999.2 3279.7 2100
Other Expenses 264.5 278.9 298.3 757.2 451.3 493.5
Other Income 146.5 169.7 259.7 295 171.5 155.2
Depreciation 550.2 647.5 759.9 938.9 1026.6 1077.2
Interest 100.3 126.7 108.2 82.6 63.4 78.8
Profit before tax 2164.7 2646.3 2899.6 2858.8 1553.7 1350.4
Tax 637.9 683.1 563.2 751.1 296.5 438
Net profit 1526.8 1963.2 2336.4 2130.6 1292.1 946.8
Dividend Amount 254.7 306.36 340.8 341.2 331.6 332

Quarters
Report Date Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21
Sales 4426.5 4910.9 4941.9 4768.2 4945.1 5786.9
Expenses 3305.2 3754.8 4402.6 3715 4210.6 4427.1
Other Income 94.8 58.5 85.6 100.5 124.5 230.2
Depreciation 292.3 316.5 311.2 308.8 283.9 294.1
Interest 23.30 25.20 18.80 29.70 19.30 23.40
Profit before tax 900.5 872.9 294.9 815.2 555.8 1272.5
Tax 305.9 101.1 267 257.9 175.4 276.7
Net profit 594.6 771.8 27.9 557.3 380.4 995.8
Operating Profit 1121.3 1156.1 539.3 1053.2 734.5 1359.8

BALANCE SHEET
Report Date Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18
Equity Share Capital 84.9 85.1 85.2 85.3 82.9 83
Reserves 6284.2 7780.1 9767.9 12484.5 12179.2 12488.6
Borrowings 3,682.20 4,477.00 4,314.10 3,352.10 4,918.50 5,071.40
Other Liabilities 3328.9 3563.3 4289.9 4408.5 4473.9 4706.3
Total 13380.2 15905.5 18457.1 20330.4 21654.5 22349.3
Net Block 4050.6 4640.8 5377 6563 6930.7 6968
Capital Work in Progress 565.3 638.8 529 772.2 3324.5 3470.5
Investments 197 1,066.80 2247.8 3833.1 2109.7 2298.3
Other Assets 8567.3 9559.1 10303.3 9162.1 9289.6 9612.5
Total 13380.2 15905.5 18457.1 20330.4 21654.5 22349.3
Receivables 3180.4 3325.3 4101.2 4125 3798.6 4052.7
Inventory 2,170.70 2,418.80 2,569.90 2,557.90 2,852.80 2,908.90
Cash & Bank 2017.1 2300.6 1872.4 492.1 386.5 263.8
No. of Equity Shares 169836675 170108870 170381170 170607853 165741913 165910907
New Bonus Shares
Face value 5 5 5 5 5 5

CASH FLOW:
Report Date Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18
Cash from Operating Activity 1377.9 1969.7 2523.5 3262.6 2144.4 1803
Cash from Investing Activity -1436.9 -1603.5 -2369.8 -1609.9 -1889.6 -1482.6
Cash from Financing Activity -156.8 -24.2 -433.2 -1700.1 -369.1 -444
Net Cash Flow -215.8 342 -279.5 -47.4 -114.3 -123.6

PRICE: 1766.5 2563.9 3488.75 3035.2 2632.35 2080.55

DERIVED:
Adjusted Equity Shares in Cr 16.98 17.01 17.04 17.06 16.57 16.59
DO NOT MAKE ANY CHANGES TO THIS SHEET

Mar-19 Mar-20 Mar-21 Mar-22

15448.2 17517 19047.5 21545.2
4,770.20 5,530.70 6,869.40 7,796.10
275.40 -23.70 790.50 353.90
329.1 314.8 320.5 390.5
1434.8 1445.4 1574.4 1602.2
3364.2 3391 3639 3897.9
2227.3 2173.4 2389.2 2964
419.8 2160.9 1171.4 1480.7
381.3 670 335.2 554.7
1134.8 1163.1 1228.8 1165.2
88.9 98.3 97.00 95.80
2335.8 1885.7 2883.5 3061.4
385.8 -140.3 931.9 878.9
1950 2026 1951.6 2182.5
332 415.5 416 499.2

Dec-21 Mar-22 Jun-22 Sep-22

5338.3 5474.9 5232.9 6331.8
4122.6 5023.9 4291.7 4432.9
74.3 132.4 863.3 54.8
294.2 293 301.8 309.2
21.60 31.50 34.70 30.90
974.2 258.9 1468 1613.6
264.9 161.9 279 499.4
709.3 97 1189 1114.2
1215.7 451 941.2 1898.9

Mar-19 Mar-20 Mar-21 Mar-22

 83 83.1 83.2 83.2
13994.1 15616.3 17755.2 19289.3
3,838.10 2,210.20 3,030.80 3,384.50
4503.1 5313.7 5718.7 6988.5
22418.3 23223.3 26587.9 29745.5
7191 6850.3 8205.7 8121.5
2933.5 1535.1 1565.1 1293.4
2587.1 2677.8 2211.8 2615.9
9706.7 12160.1 14605.3 17714.7
22418.3 23223.3 26587.9 29745.5
3986.9 5027.8 4964.1 6676.4
3,357.90 3,506.70 4,541.20 5,088.40
222.8 205.3 2078.8 2419.2
166065948 166172082 166301231 166425849

5 5 5 5

Mar-19 Mar-20 Mar-21 Mar-22

2870.4 2984.1 3570.3 2810.8
-769.2 -494.8 -2254.7 -2565.4
-2132.6 -2515.9 -29.8 -242.2
-31.4 -26.6 1285.8 3.2

2780.25 3120.75 4516 4295.45

16.61 16.62 16.63 16.64

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