Ramco Industries Limited DCF Valuation
RAMCOIND · Construction Materials · Current price ₹294.2
Ramco Industries Limited cash-flow valuation
Our residual income (excess return on book) values Ramco Industries Limited at ₹439 per share. Book value plus the present value of returns earned above the 10.6% cost of equity. It carries 100% of the weight in our published estimate of ₹439. A discounted cash flow is only as good as the cash-flow path it assumes, so the assumptions behind it are listed in full below.
Try your own assumptions
Prefer to build the discounted cash flow yourself? The DCF calculator below opens pre-filled with Ramco Industries Limited's reported free cash flow, net debt and share count, so you can set your own growth and discount rate.
How we got this fair value
Every number below is part of the same estimate for Ramco Industries Limited. Nothing here is a target price or a forecast of where the share price will go.
Workable, with real gaps. Weigh it alongside your own view rather than on its own.
Estimate range ₹395 – ₹483
Why this method for this business
The residual income model is appropriate for a capital-intensive construction materials business with a low moat, while the relative P/E approach captures market sentiment and sector dynamics.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
Book value plus the present value of returns earned above the 10.6% cost of equity
- dcf: Not suitable for a cyclical commodity business with erratic cash flows
- book-value residual income: Not applicable for an asset-heavy business
What was missing
- Forward-looking analyst estimates
- Detailed capital allocation data
- Long-term demand trends for construction materials
What drives it
5 inputs, grouped by how strong each claim is
- ROE (normalized)
- 4.4%
- Book value / share
- 521 ₹
computed
reported
- Cost of equity
- 10.6%
building-block
- Moat
- None
- Excess-return horizon
- 3 yrs
computed
computed
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for Ramco Industries Limited: which models suit the business, the moat, the growth and margin assumptions. It does not produce the number. The fair value itself is computed in Python by a deterministic engine (version 2026.08.1) from those inputs, so the same inputs always give the same result and every figure above can be traced to a source.
Estimated 15 Sept 2026. Re-run as new financials and news arrive.
How we value stocks
We estimate what a business is worth from its own economics: cash flows, returns on capital, and a multiple justified by its quality, rather than from where the share price has been. A fair value estimate is a view, not a verdict, and it is only as good as the inputs listed above.
Read the full fair-value methodologyMore on Ramco Industries Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.