Ajax Engineering Intrinsic Value

AJAXENGG • Automobiles
Current Stock Price
₹605.30
Primary Intrinsic Value
₹262.80
Market Cap
₹665.8 Cr
+18.9% Upside
Median Value
₹719.92
Value Range
₹188 - ₹1211
Assessment
Trading Below Median Value
Safety Margin
15.9%

AJAXENGG Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹262.80 ₹210.24 - ₹315.36 -56.6% EPS: ₹21.90, Sector P/E: 12x
Book Value Method asset ₹1051.82 ₹946.64 - ₹1157.00 +73.8% Book Value/Share: ₹1051.82, P/B: 1.0x
Revenue Multiple Method revenue ₹1210.60 ₹1089.54 - ₹1331.66 +100.0% Revenue/Share: ₹2051.82, P/S: 0.8x
EBITDA Multiple Method earnings ₹1210.60 ₹1089.54 - ₹1331.66 +100.0% EBITDA: ₹347.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹362.91 ₹290.33 - ₹435.49 -40.0% CF Growth: 5.0%, Discount: 15%
PEG Ratio Method growth ₹350.40 ₹315.36 - ₹385.44 -42.1% EPS Growth: 20.0%, Fair P/E: 16.0x
Growth Adjusted P/E growth ₹188.34 ₹169.51 - ₹207.17 -68.9% Revenue Growth: 15.0%, Adj P/E: 8.6x
ROE Based Valuation profitability ₹1210.60 ₹1089.54 - ₹1331.66 +100.0% ROE: 21.7%, P/E Multiple: 16x
Graham Defensive Method conservative ₹719.92 ₹647.93 - ₹791.91 +18.9% EPS: ₹21.90, BVPS: ₹1051.82
Method Types: Earnings Asset DCF Growth Dividend Conservative

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Valuation Comparison Chart

AJAXENGG Intrinsic Value Analysis

What is the intrinsic value of AJAXENGG?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Ajax Engineering (AJAXENGG) is ₹719.92 (median value). With the current market price of ₹605.30, this represents a +18.9% variance from our estimated fair value.

The valuation range spans from ₹188.34 to ₹1210.60, indicating ₹188.34 - ₹1210.60.

Is AJAXENGG undervalued or overvalued?

Based on our multi-method analysis, Ajax Engineering (AJAXENGG) appears to be trading below median value by approximately 18.9%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 103.08 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Debt to Equity Ratio 1.28 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 21.7% Industry Standard: 15%+ Above 15% Measures shareholder return efficiency
Operating Margin 14.0% Industry Standard: 20%+ Above 10% Indicates operational efficiency level
Asset Turnover Ratio 1.52x Industry Standard: 1.0x+ Above 1.0x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹43 Cr ₹26 Cr Positive Free Cash Flow 8/10
March 2024 ₹208 Cr ₹150 Cr Positive Free Cash Flow 8/10
March 2023 ₹185 Cr ₹89 Cr Positive Free Cash Flow 7/10
March 2022 ₹85 Cr ₹21 Cr Positive Free Cash Flow 7/10
March 2021 ₹72 Cr ₹69 Cr Positive Free Cash Flow 8/10