Dr. Reddy's Lab Ltd.

Dr. Reddy's Lab Ltd. (RDY - Analyst Report) doubled its sales from last year in its most recently reported quarter, sending its share price higher by more than 100% in just the last 3 months.

Company Description

Dr. Reddy's, together with its subsidiaries, specializes in developing pharmaceutical and medical technology. The company focuses on drug discovery, generics and care products and has a market cap of $2.8 billion.

Fourth-Quarter Results

Dr. Reddy's reported fourth-quarter results on May 18 that were very solid but impaired by one-time charges.

Sales were up big, climbing 50% from last year to $407 million. When stripping out one-time items related to a German subsidiary, earnings came in at 48 cents per share, 15 cents ahead of the consensus.

Generics Drive Growth

The company noted that its sales growth was driven by a generic version of GlaxoSmithKlines migraine drug Imitrex.

Estimates

Estimates have been a bit volatile over the last few months but the general trend is higher. The current-year estimate is up 12 cents from 90 days ago to $94 cents per share. The next-year estimate is up 19 cents to $1.16, a 23% earnings growth projection.

The Chart

Shares of RDY have been locked into a fierce rally since bottoming out just above $7 in early March. Since then, shares have topped the $16 mark, an impressive short-term return of more than 100%. Take a look at the chart below.