THE RAMCO CEMENTS LIMITED Fair Value
RAMCOCEM · Construction Materials · Current price ₹875
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹299 | 3% ROE fading to 14% over ~3 yrs, on ₹343 book |
| Relative P/E | ₹890 | EPS × 30.1 peer-median P/E |
| Graham floor | ₹478 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | ₹954 | Street consensus 12-month target price |
Is THE RAMCO CEMENTS LIMITED undervalued?
DocStoX estimates the fair value of THE RAMCO CEMENTS LIMITED at ₹569 per share, versus the current market price of ₹875. That puts the stock about -35.0% above our fair-value estimate, which we read as "Expensive". Our confidence in this estimate is low.
How this fair value is calculated
This estimate blends 4 independent methods: Residual income (₹299), Relative P/E (₹890), Graham floor (₹478), Analyst target (₹954). 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 ₹299 (bear) to ₹569 (base) to ₹954 (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 THE RAMCO CEMENTS 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.