Based on the aggregated intelligence of 165,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Indian generic-drug maker Dr. Reddy's Laboratories (NYSE: RDY) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Dr. Reddy's and see what CAPS investors are saying about the stock right now.

Dr. Reddy's facts

Headquarters (Founded)

Hyderabad, India (1984)

Market Cap

$5.1 billion



Trailing-12-Month Revenue

$1.6 billion


CEO G. V. Prasad (since 2001)
CFO Umang Vohra (since 2009)

Return on Equity (Average, Past 3 Years)



Teva Pharmaceutical Industries (Nasdaq: TEVA)
Novartis (NYSE: NVS)
Mylan (Nasdaq: MYL)
Watson Pharmaceuticals (NYSE: WPI)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 95% of the 537 members who have rated Dr. Reddy's believe the stock will outperform the S&P 500 going forward. These bulls include tytymhorau and NHWeston.

A few months ago, tytymhorau informed Fools that Dr. Reddy's is "a global provider of generic drugs and related active ingredients." Our CAPS member continues: "Poised to profit from an increasing pipeline of drugs coming off patent, the insurance industry's increasing push toward generics in developed countries, and the cost effectiveness of generics for expanding health care in developing countries."

Dr. Reddy's might not be a household name in the U.S., but in India, it happens to be the country's most profitable pharmaceutical company. While it lacks the sheer scale and reputation of more established generic players like Teva, Novartis, Mylan, and Watson, there's a strong case to be made for Dr. Reddy's as the superior growth stock. Over the past one-year, two-year, and five-year time periods, shares of Dr. Reddy's have significantly outperformed each of those same rivals.

Of course, with a still relatively small size, access to cheaper labor, and growing exposure to emerging markets, CAPS members like NHWeston think the stock still has plenty of room to run:

Dr. Reddy's is a rapidly growing player in the global generics market. For now, they virtually own their domestic market in India and, although overshadowed by more flashy companies like Teva, they are gaining market share in Europe and Latin America. Less celebrated but also important is -- or so I'm told -- they're doing some interesting original work in melanoma, diabetes, and cholera.

What do you think about Dr. Reddy's, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!  

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Novartis and Dr. Reddy's are Motley Fool Global Gains picks. Try any of our Foolish newsletter services free for 30 days.

True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. The Fool's disclosure policy always gets a perfect score.