Today Dr Reddy Laboratories (RDY) Hits New Lifetime High

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 $10.8 million.
  • RDY has traded 13,138 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 24.9. Currently there are no analysts that rate 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 230,100 shares per day over the past 30 days. Dr Reddy has a market cap of $8.9 billion and is part of the health care sector and drugs industry. Shares are up 28.9% year-to-date as of the close of trading on Wednesday.

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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, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 9.8%. Since the same quarter one year prior, revenues slightly increased by 9.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The current debt-to-equity ratio, 0.39, 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 1.21, which illustrates the ability to avoid short-term cash problems.
  • Compared to its closing price of one year ago, RDY's share price has jumped by 26.09%, exceeding the performance of the broader market during that same time frame. 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's earnings per share declined by 16.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. 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 ($2.15 versus $2.10).

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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