Rathi Steel & Power Ltd Valuation

RATHIST · Industrials · Current price ₹23.54

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DocStoX fair value
₹15
high confidence
Current price
₹24
Upside
-38.1%
P/E ratio
14.5x
P/B ratio
1.5x
Verdict
Avoid
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Is Rathi Steel & Power Ltd undervalued?

DocStoX estimates the fair value of Rathi Steel & Power Ltd at ₹15 per share, versus the current market price of ₹24. That puts the stock about -38.1% above our fair-value estimate, which we read as "Avoid". Our confidence in this estimate is high.

How this fair value is calculated

This estimate blends 3 independent methods: Residual income (₹16), Relative P/E (₹12), Graham floor (₹14). 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 ₹12 (bear) to ₹15 (base) to ₹17 (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

Rathi Steel & Power Ltd trades at a P/E of 14.5x and a P/B of 1.5x, 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 Rathi Steel & Power 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.