Stock Updates

Is this Large Market Cap Stock target price reasonable for Dr. Reddy’s Laboratories Ltd. (NYSE:RDY)?

The company in question is,¬†Dr. Reddy’s Laboratories Ltd. (NYSE:RDY)¬†currently with a stock price of 45.28 (-1.18% today). The market cap for Dr. Reddy’s Laboratories Ltd. is 7980.47, and is in the sector Healthcare, and Drug Manufacturers – Other industry. The target price for Dr. Reddy’s Laboratories Ltd. is 48.95. Currently Dr. Reddy’s Laboratories Ltd. is trading with a P/E of 34.71, and a forward P/E of 20.7. Average volume for Dr. Reddy’s Laboratories Ltd. is 316.88 and so far today it is 85396.

Performance in the last year for Dr. Reddy’s Laboratories Ltd. has been -28.85%. For EPS growth, Dr. Reddy’s Laboratories Ltd. has seen a growth of -9.80%, and is looking to grow in the next year to 66.39%. More long term stats show that EPS growth has been 12.50% over the last five years and could be 21.10% for the next five years. Dr. Reddy’s Laboratories Ltd. has seen sales growth quarter over quarter at -13.90%, with EPS growth quarter over quarter at -79.20%. The 20-day simple moving average is -1.93%, with the 200-day simple moving average coming to -1.43%.

Since the IPO date for Dr. Reddy’s Laboratories Ltd. on the 04/11/2001, Dr. Reddy’s Laboratories Ltd. has seen performance year to date to be -0.46%. With Dr. Reddy’s Laboratories Ltd. trading at 45.28, the dividend yield is 0.65%, and the EPS is 1.32.

So could Dr. Reddy’s Laboratories Ltd., be undervalued? Well as said before P/E is 34.71. The PEG is 1.65, P/S is 3.56 and the P/B is at 4.43. The P/cash is 20.8, with P/free cash flow at 21.28.

Dr. Reddy’s Laboratories Ltd.¬†ability to deal with debt shows that the current ratio is 1.5, and the quick ratio is 1.1. This is with long term debt/equity at 0.1, and total debt/equity at 0.33.

In terms of margins, Dr. Reddy’s Laboratories Ltd. has a gross margin of 58.50%, an operating margin of 15.00% and a profit margin of 10.10%.Payout ratio for Dr. Reddy’s Laboratories Ltd. is 22.70%. Return on assets come to 7.40% with return on investment coming to 13.50%.

Insider ownership for Dr. Reddy’s Laboratories Ltd., is at 27.70% and institutional ownership comes to 17.10%. Outstanding shares are at 174.17. While shares float is 121.76. The float short is currently 3.62%, and short ratio is 13.9.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

Leave a Comment