$Dr Reddy's Laboratories Ltd (RDY.US)$It's an Indian company...

Revenue has continued to grow in the past 5 years, with an average growth rate of 11.7%. Operating profit grew very fast in the first 2 years, and surged 138% in 2023. Net profit was affected by profit and loss from the sale of securities and asset impairment. Net profit fell 11.6% at one point in 2021, and increased for the rest of the 4 years, reaching 91.3% in 2023.

The income statement shows that despite a 14.7% increase in revenue in 2023, costs fell sharply by 57%, causing a sharp increase in gross profit and a 51% increase in operating expenses. This is a bad sign because a large percentage exceeds revenue growth. Once gross margin returns to the previous level, net profit will immediately be hit.

Interest expenses account for 1.7% of operating profit, and the interest burden is very light. Other expenses account for 27% of operating profit and fluctuate greatly from year to year, which is a risk point.

The balance ratio has declined from 37.8% to 27.9% over the past 5 years.

The balance sheet shows goodwill of 5.5 billion dollars, which accounts for a very low proportion. There are few short-term loans, no long-term loans, and the risk of debt is very low.

Accounts receivable have declined from 2021, but still reached 29% of revenue, which is too high. The inventory ratio is normal.

The net operating amount has continued to be higher than net investment over the past 5 years, and there is a certain shareholders' surplus.

The current price-earnings ratio is 16.8, and there is a certain discount compared to the profit growth rate, so you can choose carefully (⭐️)