RANE (MADRAS) LIMITED Valuation
RML · Automobile and Auto Components · Current price ₹1,105
Is RANE (MADRAS) LIMITED undervalued?
DocStoX estimates the fair value of RANE (MADRAS) LIMITED at ₹672 per share, versus the current market price of ₹1,105. That puts the stock about -39.2% 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 (₹279), 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 ₹279 (bear) to ₹672 (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.
Valuation multiples
RANE (MADRAS) LIMITED trades at a P/E of 28.4x and a P/B of 4.4x, with a dividend yield of 1.4%. 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 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.