Quick Look at Dr. Reddy's Laboratories (RDY)

By Kim Brooks • Friday, December 27 10:12 • Permanent Link

With gains of 2.8%, Dr. Reddy's Laboratories was one of the winners on Wall Street today. Its shares are now trading at $16.0 and have logged a -1.0% daily outperformance of the S&P 500. Don't join the feeding frenzy before checking some basic facts about this stock:

Dr. Reddy's Laboratories has moved 11.9% over the last year, and the S&P 500 logged a change of 26.6%
Its trailing earnings per share (EPS) is $0.78
Dr. Reddy's Laboratories has a trailing 12 month Price to Earnings (P/E) ratio of 20.5 while the S&P 500 average is 29.3
Its forward earnings per share (EPS) is $0.87 and its forward P/E ratio is 18.4
The company has a Price to Book (P/B) ratio of 0.04 in contrast to the S&P 500's average ratio of 4.74
Dr. Reddy's Laboratories is part of the Health Care sector, which has an average P/E ratio of 26.07 and an average P/B of 3.53
RDY has reported YOY quarterly earnings growth of -15.3% and gross profit margins of 0.6%
The company has a free cash flow of $7.55 Billion, which refers to the total sum of all its inflows and outflows of cash over the last quarter
Dr. Reddy's Laboratories Limited, together with its subsidiaries, operates as an integrated pharmaceutical company worldwide. It operates through Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Others segments. The company's Global Generics segment manufactures and markets prescription and over-the-counter finished pharmaceutical products that are marketed under a brand name or as a generic finished dosages with therapeutic equivalence to branded formulations, as well as engages in the biologics business. The PSAI segment manufactures and markets active pharmaceutical ingredients and intermediates, which are principal ingredients for finished pharmaceutical products. This segment also provides contract research services; and manufactures and sells active pharmaceutical ingredients and steroids in accordance with the specific customer requirements. The Others segment engages in developing therapies in the fields of oncology and inflammation; research and development of differentiated formulations; and provides digital healthcare and information technology enabled business support services. The company offers its products for various therapeutic categories primarily include gastro-intestinal, cardiovascular, anti-diabetic, dermatology, oncology, respiratory, stomatology, urology, and nephrology. Dr. Reddy's Laboratories Limited was incorporated in 1984 and is headquartered in Hyderabad, India.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.