RAMA PHOSPHATES LIMITED Valuation

RAMAPHO · Chemicals · Current price ₹122.61

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DocStoX fair value
₹80
medium confidence
Current price
₹123
Upside
-34.8%
P/E ratio
31.7x
P/B ratio
1.3x
Verdict
Avoid
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Is RAMA PHOSPHATES LIMITED undervalued?

DocStoX estimates the fair value of RAMA PHOSPHATES LIMITED at ₹80 per share, versus the current market price of ₹123. That puts the stock about -34.8% above our fair-value estimate, which we read as "Avoid". Our confidence in this estimate is medium.

How this fair value is calculated

This estimate blends 3 independent methods: Residual income (₹84), Relative P/E (₹61), Graham floor (₹92). 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 ₹61 (bear) to ₹80 (base) to ₹92 (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

RAMA PHOSPHATES LIMITED trades at a P/E of 31.7x and a P/B of 1.3x, with a dividend yield of 0.6%. 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 RAMA PHOSPHATES LIMITED

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.