RAMA TELECOM LIMITED Valuation

RTL · Telecom · Current price ₹82.8

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DocStoX fair value
₹61
low confidence
Current price
₹83
Upside
-26.2%
P/E ratio
14.2x
P/B ratio
2.4x
Verdict
Avoid
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Is RAMA TELECOM LIMITED undervalued?

DocStoX estimates the fair value of RAMA TELECOM LIMITED at ₹61 per share, versus the current market price of ₹83. That puts the stock about -26.2% 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 (₹81), Relative P/E (₹33), Graham floor (₹40). 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 ₹33 (bear) to ₹61 (base) to ₹81 (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

RAMA TELECOM LIMITED trades at a P/E of 14.2x and a P/B of 2.4x, 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 RAMA TELECOM 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.