Dr. Reddy's Laboratories Stock Analysis, Valuation (NYSE:RDY)

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$34.07 $0.18 (0.53%) RDY stock closing price Jun 22, 2018 (Closing)

View the Dr. Reddy's Laboratories stock analysis video on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for RDY stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Dr.Reddy's Laboratories Ltd (ADR) Stock Rating 3.2/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for RDY stock analysis. Dr. Reddy's Laboratories valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Based on a company's historical fundamentals we arrive at Dr. Reddy's Laboratories stock rating which is indicative of the company's financial performance.

Should you buy RDY stock?

  • Dr. Reddy's Laboratories had a healthy average operating margin of 10.06 over the last 4 quarters.
  • Net margins came in at average 6.9% for Dr. Reddy's Laboratories over the last twelve months.
  • RDY stock is trading at a favorable price to sales multiple of 2.6 as against the Medical sector average multiple of 6.5.
  • Dr. Reddy's Laboratories has an attractive ROIC (Return on Invested Capital) of 5.9
  • Dr. Reddy's Laboratories has a good Return On Equity (ROE) of 7.9.

Should you sell RDY stock?

  • Dr. Reddy's Laboratories had a low YoY revenue growth of 0.2% in the 2018-03.
  • Long term revenue growth of 0.6 over the past 5 years has been disappointing.
  • Dr. Reddy's Laboratories is debt laden and has a high debt/equity ratio of 0.56.

Comments on this video and Dr. Reddy's Laboratories stock

Amigobulls Dr. Reddy's Laboratories stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of RDY stock. Company's fundamentals remain one of the key driver of RDY stock and helps investors in making good buy and sell decision.

Dr. Reddy's Laboratories revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. One can also combine technical analysis and fundamental analysis to get a holistic picture about RDY stock.