While I've traded Dr. Reddy's Laboratories (RDY) in the past, I have not touched it in the past few years; however as we await for the new Market Vectors Indian Small Cap fund to launch I was poking my nose around Indian stocks this weekend since the Indian market has corrected quite a bit (and rebounded from oversold levels last week).  So this name came back onto my radar in the limited universe of Indian ADRs.  (full list of Indian stocks available at TickerSpy)



Other than Bucyrus (BUCY) I cannot find a better chart, and right now it's all about charts, momentum, and liquidity so let's start there.  Not much you can argue with here; you can see as Sensex took a big hit (large caps were hit hard in India) Dr. Reddy's downdraft was relatively limited.  Further, with today's move the stock has broken out to yet another new high which technicians love to see (and chase into).



As for fundamentals, Dr. Reddy's is a pharmaceutical company with a large emphasis on generic drugs; you might be familiar with Teva Pharmaceuticals (TEVA) which would be a larger fish in a similar pond.  If you pull up a 10 year chart on TEVA you essentially have 10 bagger; the stock has moved from $5 to $50 so you can see that while not a sexy space, it can be very profitable if you are a dominant franchise.  For Dr. Reddy's, in the last quarter generics were $264 of the $382M in revenue, or 69%.

Established in 1984, Dr.