R M DRIP & SPRINK SYS LTD Valuation

RMDRIP · Capital Goods · Current price ₹21.01

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DocStoX fair value
₹12
low confidence
Current price
₹21
Upside
-42.6%
P/E ratio
25.6x
P/B ratio
7.4x
Verdict
Avoid
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Is R M DRIP & SPRINK SYS LTD undervalued?

DocStoX estimates the fair value of R M DRIP & SPRINK SYS LTD at ₹12 per share, versus the current market price of ₹21. That puts the stock about -42.6% 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 (₹3), Relative P/E (₹33), Graham floor (₹7). 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 ₹3 (bear) to ₹12 (base) to ₹33 (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

R M DRIP & SPRINK SYS LTD trades at a P/E of 25.6x and a P/B of 7.4x, with a dividend yield of 2.5%. 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 R M DRIP & SPRINK SYS 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.