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 $13.9 million.
  • RDY has traded 17,516 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 in India. It operates in three segments: Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Proprietary Products. The stock currently has a dividend yield of 0.5%. RDY has a PE ratio of 24.5. Currently there is 1 analyst that rates Dr Reddy Laboratories a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Dr Reddy Laboratories has been 255,200 shares per day over the past 30 days. Dr Reddy has a market cap of $8.8 billion and is part of the health care sector and drugs industry. Shares are up 26.4% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Dr Reddy Laboratories as a buy. 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, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 4.7%. Since the same quarter one year prior, revenues rose by 22.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.43, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.30, which illustrates the ability to avoid short-term cash problems.
  • Powered by its strong earnings growth of 50.00% and other important driving factors, this stock has surged by 37.48% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, RDY should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • DR REDDY'S LABORATORIES LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, DR REDDY'S LABORATORIES LTD increased its bottom line by earning $2.10 versus $1.79 in the prior year. This year, the market expects an improvement in earnings ($2.28 versus $2.10).
  • 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 51.1% when compared to the same quarter one year prior, rising from $60.65 million to $91.64 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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