Oversold

RDY

Same as last week
Valuation50/ 100
Cash flow & growth33/ 100
Upside potential15/ 100
Risk potential57/ 100

RDY's valuation appears fair, fundamentals are below averages, while forward estimates point to earnings growth and improving margins, though analyst coverage is limited.

Valuation

Valuation stays neutral because earnings are difficult to compare across periods. Business trends, outlook and financial risk still contribute to the overall score.

Cash flow & growth

Business trends are weak. Over the past year: revenue -0.4%, earnings -41.6%, operating margin -10.8 percentage points. Free cash flow is 4.7% of revenue. The business score is 33.2/100. Growth, margins and cash generation drive the score. Missing or older data receives less weight.

Favorable scenario

Weaker business results limit upside support. Price history provides the reference because earnings are difficult to compare.

The calculation starts with the stock’s typical weekly price movements, adjusted for business performance and outlook. Unusually large jumps have less influence. The result is 15% upside, or about $13.68. This uses the 15% minimum allowance.

This is a scenario based on our model, not a forecast or probability.

Downside scenario

The 56.6% downside is driven by operating stress: the model assumes earnings fall 42.7% and the PE falls 24.3%. That gives $0.26 per share at a 20.2× PE, or about $5.16. Price swings alone suggest 21.1% downside.

This is a scenario based on our model, not a forecast or probability.

RDY vs Historical averages

MetricCurrentAverageRelative
PE27x10x156% higher
PE percentile995098% higher
EPS$0.45$1.7074% lower
FCF$171.2M$214.7M20% lower
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RDY’s earnings and cash flow are below their historical averages, while its earnings multiple is higher.

RDY Forward outlook

MetricOutlook
Forward valuationStrongly improving
Forward earningsStrong growth
Forward revenueStable
Forward profitabilityExpanding
Analyst coverageLimited
Estimate dispersionTight

RDY’s outlook is generally improving, though analyst coverage is limited.

RDY PE Valuation

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This table applies RDY's historical price-to-earnings (PE) landmarks to current earnings. The implied prices are valuation scenarios, not price forecasts or targets.

RDY Earnings Per Share

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This chart tracks RDY's trailing twelve-month diluted earnings per share, calculated from four consecutive reported quarters to reduce seasonal noise.

RDY Quarterly Revenue

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This chart tracks RDY's quarterly revenue over time and shows how sales are changing from year to year.

RDY Free Cash Flow

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This chart tracks RDY's free cash flow over time, showing whether the business is consistently generating cash after operating costs and capital spending.

RDY Total Shares

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This chart tracks changes in RDY's diluted share count. A rising count can dilute existing owners, while a falling count often reflects share repurchases.

RDY Net Leverage

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Quarterly Net Leverage uses the last 12 months of EBITDA. A falling multiple generally indicates less debt relative to earnings capacity. Negative values mean net cash; missing data or nonpositive LTM EBITDA are N/A. The table shows each period’s Net Leverage and status.

RDY PE vs Healthcare Sector

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This chart compares RDY's price-to-earnings (PE) ratio with the Healthcare sector average. A discount or premium can reflect differences in expected growth, profitability, or risk.

RDY Weekly Price

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This chart uses RDY's weekly closing prices to show the longer-term trend. The lower panes show weekly RSI and Stochastic momentum.

RDY Weekly Moving Averages

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This chart compares RDY's 8, 20, 50, 100, and 200-week moving averages from 2020 onward. Shorter averages react faster to price changes, while longer averages show the broader trend.

RDY Yearly ROI

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Each line starts at 0% using the year’s first dependable weekly close and tracks the return through December, or through the latest available week for the current year.