Should you consider NYSE:RDY for quality investing?

In this article we will dive into DR. REDDY'S LABORATORIES-ADR (NYSE:RDY) as a possible candidate for quality investing. Investors should always do their own research, but we noticed DR. REDDY'S LABORATORIES-ADR showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

What matters for quality investors.

• DR. REDDY'S LABORATORIES-ADR has achieved substantial revenue growth over the past 5 years, with a 11.55% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• DR. REDDY'S LABORATORIES-ADR demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 27.92% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• With a Debt/Free Cash Flow Ratio of 0.34, DR. REDDY'S LABORATORIES-ADR exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• With a favorable Profit Quality (5-year) ratio of 94.04%, DR. REDDY'S LABORATORIES-ADR showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• With a robust 5-year EBIT growth of 32.94%, DR. REDDY'S LABORATORIES-ADR showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• DR. REDDY'S LABORATORIES-ADR has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Fundamental Analysis Observations

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

RDY gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 214 industry peers in the Pharmaceuticals industry. RDY gets an excellent profitability rating and is at the same time showing great financial health properties. RDY has a decent growth rate and is not valued too expensively. These ratings could make RDY a good candidate for quality investing.

Our latest full fundamental report of RDY contains the most current fundamental analsysis.

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.