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Why Quality Investors Should Delve into DR. REDDY'S LABORATORIES-ADR (NYSE:RDY) for Investment Opportunities.

By Mill Chart

Last update: Oct 24, 2023

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.

Why NYSE:RDY may be interesting for quality investors.

  • DR. REDDY'S LABORATORIES-ADR has shown strong performance in revenue growth over the past 5 years, with a 11.55% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • 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 favorable Debt/Free Cash Flow Ratio of 0.34, DR. REDDY'S LABORATORIES-ADR showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • With a robust Profit Quality (5-year) ratio of 94.04%, DR. REDDY'S LABORATORIES-ADR highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
  • DR. REDDY'S LABORATORIES-ADR has consistently achieved strong EBIT growth over the past 5 years, with a 32.94% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • DR. REDDY'S LABORATORIES-ADR has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

A complete fundamental analysis of NYSE:RDY

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

RDY gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 208 industry peers in the Pharmaceuticals industry. RDY has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. RDY is not valued too expensively and it also shows a decent growth rate. These ratings could make RDY a good candidate for quality investing.

Check the latest full fundamental report of RDY for a complete fundamental analysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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