New Lifetime High For Dr. Reddy Laboratories (RDY)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Dr. Reddy Laboratories ( RDY) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Dr. Reddy Laboratories as such a stock due to the following factors:

  • RDY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.0 million.
  • RDY has traded 7,613 shares today.
  • RDY is trading at a new lifetime high.

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More details on RDY:

Dr. Reddy's Laboratories Limited operates as an integrated pharmaceutical company. It operates in three segments: Pharmaceutical services and Active Ingredients (PSAI), Global Generics, and Proprietary Products. The stock currently has a dividend yield of 0.5%. RDY has a PE ratio of 23.6. Currently there are 2 analysts that rate Dr. Reddy Laboratories a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Dr. Reddy Laboratories has been 202,200 shares per day over the past 30 days. Dr. Reddy has a market cap of $7.3 billion and is part of the health care sector and drugs industry. Shares are up 7% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Dr. Reddy Laboratories as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 2.8%. Since the same quarter one year prior, revenues rose by 19.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.58, is low and is below the industry average, implying that there has been successful management of debt levels.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 58.7% when compared to the same quarter one year prior, rising from $64.07 million to $101.66 million.
  • The gross profit margin for DR REDDY'S LABORATORIES LTD is rather high; currently it is at 60.44%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 17.48% trails the industry average.

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