Would Peter Lynch consider DR. REDDY'S LABORATORIES-ADR (NYSE:RDY) a winning stock?

Peter Lynch’s approach focused on identifying undervalued growth stocks with simple, scalable businesses. We examine whether DR. REDDY'S LABORATORIES-ADR (NYSE:RDY) fits the characteristics of a Lynch-approved investment.

Following Peter Lynch’s approach: Does DR. REDDY'S LABORATORIES-ADR (NYSE:RDY) fit the bill?

• RDY has a healthy Return on Equity(ROE) of 17.36%. This demonstrates the company's efficient utilization of capital and indicates its commitment to driving profitability.
• RDY exhibits a favorable Debt-to-Equity ratio at 0.02. This highlights the company's ability to limit excessive debt levels and maintain a strong equity base, demonstrating its financial stability and risk management practices.
• Over the past 5 years, RDY has demonstrated 24.21 growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• With a PEG ratio of 0.74, RDY presents a compelling case for growth at a fair price.
• With a Current Ratio of 1.92, RDY appears well-positioned to meet its near-term financial obligations.

Zooming in on the fundamentals.

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 6 out of 10. The analysis compared the fundamentals against 192 industry peers in the Pharmaceuticals industry. While RDY belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. RDY is not valued too expensively and it also shows a decent growth rate.

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

Our Peter Lynch screener lists more Affordable Growth stocks and is updated daily.

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.