RAJAPALAYAM MILLS LTD. Fair Value
RAJPALAYAM · Textiles · Current price ₹810
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹2,297 | 5% ROE fading to 15% over ~3 yrs, on ₹2633 book |
| Relative P/E | ₹4,492 | EPS × 36.2 peer-median P/E |
| Graham floor | ₹2,711 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | — | No analyst coverage |
Is RAJAPALAYAM MILLS LTD. undervalued?
DocStoX estimates the fair value of RAJAPALAYAM MILLS LTD. at ₹2,979 per share, versus the current market price of ₹810. That puts the stock about +267.8% below our fair-value estimate, which we read as "Buy". Our confidence in this estimate is low.
How this fair value is calculated
This estimate blends 3 independent methods: Residual income (₹2,297), Relative P/E (₹4,492), Graham floor (₹2,711). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.
Bear, base and bull scenarios
Our scenarios span ₹2,297 (bear) to ₹2,979 (base) to ₹4,492 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.
More on RAJAPALAYAM MILLS LTD.
DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.