Rajasthan Tube Manufacturing Co Ltd Valuation

RAJTUBE · Industrial Products · Current price ₹10.19

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DocStoX fair value
₹3
low confidence
Current price
₹10
Upside
-65.8%
P/E ratio
92.6x
P/B ratio
4.7x
Verdict
Avoid
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Is Rajasthan Tube Manufacturing Co Ltd undervalued?

DocStoX estimates the fair value of Rajasthan Tube Manufacturing Co Ltd at ₹3 per share, versus the current market price of ₹10. That puts the stock about -65.8% above our fair-value estimate, which we read as "Avoid". Our confidence in this estimate is low.

How this fair value is calculated

This estimate blends 3 independent methods: Residual income (₹2), Relative P/E (₹6), Graham floor (₹4). 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 (bear) to ₹3 (base) to ₹6 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.

Valuation multiples

Rajasthan Tube Manufacturing Co Ltd trades at a P/E of 92.6x and a P/B of 4.7x, with a dividend yield of 0.0%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.

Understand the ratios

More on Rajasthan Tube Manufacturing Co 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.