How does DR. REDDY'S LABORATORIES-ADR (NYSE:RDY) stack up against Peter Lynch’s investment principles?

Peter Lynch was known for finding hidden gems in the market before they became mainstream. Is DR. REDDY'S LABORATORIES-ADR (NYSE:RDY) one of those under-the-radar stocks that fits his legendary strategy?

Evaluating DR. REDDY'S LABORATORIES-ADR (NYSE:RDY) using Peter Lynch’s legendary strategy

• RDY exhibits a strong Return on Equity (ROE) of 17.36%, indicating the company's ability to generate solid returns on shareholder investments. This metric reflects the company's efficient utilization of equity capital and its profitability.
• With a current Debt-to-Equity ratio at 0.02, RDY showcases its disciplined capital structure. The company's prudent management of debt obligations contributes to its financial stability and long-term sustainability.
• The 5-year EPS growth of RDY (24.21) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• RDY boasts a PEG ratio of 0.73, indicating a reasonable valuation relative to its earnings growth.
• A Current Ratio of 1.92 suggests that RDY has sufficient assets to cover its short-term liabilities.

What is the full fundamental picture of RDY telling us.

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.

We assign a fundamental rating of 6 out of 10 to RDY. RDY was compared to 197 industry peers in the Pharmaceuticals industry. While RDY has a great profitability rating, there are some minor concerns on its financial health. RDY has a correct valuation and a medium growth rate.

For an up to date full fundamental analysis you can check the fundamental report of RDY

More Affordable Growth stocks can be found in our Peter Lynch screener.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.