SHREE RAMA MULTI TECH LTD Valuation

SHREERAMA · Capital Goods · Current price ₹41.41

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DocStoX fair value
₹24
low confidence
Current price
₹41
Upside
-41.4%
P/E ratio
22.3x
P/B ratio
3.3x
Verdict
Avoid
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Is SHREE RAMA MULTI TECH LTD undervalued?

DocStoX estimates the fair value of SHREE RAMA MULTI TECH LTD at ₹24 per share, versus the current market price of ₹41. That puts the stock about -41.4% 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 (₹14), Relative P/E (₹45), Graham floor (₹24). 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 ₹14 (bear) to ₹24 (base) to ₹45 (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

SHREE RAMA MULTI TECH LTD trades at a P/E of 22.3x and a P/B of 3.3x, 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 SHREE RAMA MULTI TECH 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.