Reverse DCF
What growth does the market imply for DRREDDY?
Working backwards from the current price to find the FCF growth assumption baked in.
aggressive
15.4% implied annual FCF growth
The market is pricing in above-average growth. Achievable for a high-quality business but leaves limited margin for error — any slowdown could hurt the price.
Current Price
₹1,272
Historical Growth
7.7%
FCF Yield
1.73%
Price / FCF
57.8x
Plain English
To justify today's price of ₹1271.70, DRREDDY.NS needs to grow its free cash flow at 15.4% per year for the next 10 years. That is 7.7% faster than its historical growth rate of 7.7%. This is optimistic but not impossible for a high-quality business. The stock leaves little room for error — any slowdown could hurt the price.
Adjust Assumptions
Growth Scenarios
What the stock is worth at different growth assumptions
| Scenario | FCF Growth | Implied IV | MoS vs Price |
|---|---|---|---|
| Half implied | 7.7% | ₹636 | -50.0% |
| Historical | 7.7% | ₹638 | -49.9% |
| GDP rate | 10.0% | ₹790 | -37.9% |
| Implied | 15.4% | ₹1,272 | +0.0% |
At Historical Growth Rate
DCF horizon: 10 years. At 7.7% growth, the model values DRREDDY at ₹638, below today's ₹1,272.
See full DCF analysis
Bear/base/bull scenarios, sensitivity heatmap, reverse DCF, and more.
Run Full Analysis →This is an analytical tool, not investment advice. Implied growth is a mathematical inversion of the DCF model and depends on WACC and terminal growth assumptions. YieldIQ is not registered with SEBI as an investment adviser.