RAMCO SYSTEMS LTD. Valuation

RAMCOSYS · Information Technology · Current price ₹579.7

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DocStoX fair value
₹252
low confidence
Current price
₹580
Upside
-56.6%
P/E ratio
51.9x
P/B ratio
8.5x
Verdict
Avoid
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Is RAMCO SYSTEMS LTD. undervalued?

DocStoX estimates the fair value of RAMCO SYSTEMS LTD. at ₹252 per share, versus the current market price of ₹580. That puts the stock about -56.6% 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 4 independent methods: Residual income (₹102), Relative P/E (₹257), Graham floor (₹153), Analyst target (₹700). 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 ₹102 (bear) to ₹252 (base) to ₹700 (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

RAMCO SYSTEMS LTD. trades at a P/E of 51.9x and a P/B of 8.5x, with a dividend yield of 0.0%. 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 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.