RAMCO SYSTEMS LTD. Intrinsic Value

RAMCOSYS · Information Technology · Current price ₹789.05

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DocStoX fair value
₹184
low confidence
Current price
₹789
Upside to fair value
-76.6%
Verdict
Avoid
Quality score
4.4 / 10
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Is RAMCO SYSTEMS LTD. undervalued?

DocStoX estimates the fair value of RAMCO SYSTEMS LTD. at ₹184 per share, versus the current market price of ₹789. That puts the stock about -76.6% 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 (₹124), Relative P/E (₹323), Graham floor (₹153). 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 ₹124 (bear) to ₹184 (base) to ₹323 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.

Margin of safety

Value investors demand a margin of safety — a discount to intrinsic value that protects against being wrong. At ₹789 versus an intrinsic value of ₹184, RAMCO SYSTEMS LTD. currently offers -76.6% of negative margin (i.e. a premium).

More on RAMCO SYSTEMS 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.