RAM RATNA WIRES LIMITED Valuation

RAMRAT · Capital Goods · Current price ₹571.45

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DocStoX fair value
₹164
low confidence
Current price
₹571
Upside
-71.3%
P/E ratio
49.8x
P/B ratio
6.6x
Verdict
Avoid
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Is RAM RATNA WIRES LIMITED undervalued?

DocStoX estimates the fair value of RAM RATNA WIRES LIMITED at ₹164 per share, versus the current market price of ₹571. That puts the stock about -71.3% 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 (₹68), Relative P/E (₹377), Graham floor (₹127). 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 ₹68 (bear) to ₹164 (base) to ₹377 (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

RAM RATNA WIRES LIMITED trades at a P/E of 49.8x and a P/B of 6.6x, with a dividend yield of 0.4%. 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 RAM RATNA WIRES 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.