THE RAMCO CEMENTS LIMITED Valuation

RAMCOCEM · Construction Materials · Current price ₹919.8

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DocStoX fair value
₹502
low confidence
Current price
₹920
Upside
-45.5%
P/E ratio
31.1x
P/B ratio
2.7x
Verdict
Avoid
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Is THE RAMCO CEMENTS LIMITED undervalued?

DocStoX estimates the fair value of THE RAMCO CEMENTS LIMITED at ₹502 per share, versus the current market price of ₹920. That puts the stock about -45.5% 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 (₹299), Relative P/E (₹928), Graham floor (₹478). 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 ₹502 (base) to ₹928 (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

THE RAMCO CEMENTS LIMITED trades at a P/E of 31.1x and a P/B of 2.7x, with a dividend yield of 0.3%. 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 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.