RANE (MADRAS) LIMITED Fair Value
RML · Automobiles · Current price ₹1,179.2
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹294 | 16% ROE fading to 14% over ~10 yrs, on ₹272 book |
| Relative P/E | ₹1,623 | EPS × 41.7 peer-median P/E |
| Graham floor | ₹488 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | — | No analyst coverage |
Is RANE (MADRAS) LIMITED undervalued?
DocStoX estimates the fair value of RANE (MADRAS) LIMITED at ₹680 per share, versus the current market price of ₹1,179. That puts the stock about -42.3% 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 (₹294), Relative P/E (₹1,623), Graham floor (₹488). 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 ₹294 (bear) to ₹680 (base) to ₹1,623 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.
More on RANE (MADRAS) 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.