RAMKRISHNA FORGINGS LTD Valuation

RKFORGE · Automobile and Auto Components · Current price ₹753.15

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DocStoX fair value
₹223
low confidence
Current price
₹753
Upside
-70.3%
P/E ratio
190.7x
P/B ratio
3.2x
Verdict
Avoid
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Is RAMKRISHNA FORGINGS LTD undervalued?

DocStoX estimates the fair value of RAMKRISHNA FORGINGS LTD at ₹223 per share, versus the current market price of ₹753. That puts the stock about -70.3% 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 4 independent methods: Residual income (₹156), Relative P/E (₹139), Graham floor (₹127), Analyst target (₹615). 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 ₹127 (bear) to ₹223 (base) to ₹615 (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

RAMKRISHNA FORGINGS LTD trades at a P/E of 190.7x and a P/B of 3.2x, with a dividend yield of 0.1%. 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 RAMKRISHNA FORGINGS 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.