Raj Rayon Industries Intrinsic Value

RAJRILTD • Textiles
Current Stock Price
₹22.15
Primary Intrinsic Value
₹7.20
Market Cap
₹124.0 Cr
-0.9% Downside
Median Value
₹21.96
Value Range
₹7 - ₹55
Assessment
Trading Near Calculated Value
Safety Margin
-0.9%

RAJRILTD Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹7.20 ₹5.76 - ₹8.64 -67.5% EPS: ₹0.60, Sector P/E: 12x
Book Value Method asset ₹21.96 ₹19.76 - ₹24.16 -0.9% Book Value/Share: ₹21.96, P/B: 1.0x
Revenue Multiple Method revenue ₹44.30 ₹39.87 - ₹48.73 +100.0% Revenue/Share: ₹182.32, P/S: 0.8x
EBITDA Multiple Method earnings ₹44.30 ₹39.87 - ₹48.73 +100.0% EBITDA: ₹61.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹55.38 ₹44.30 - ₹66.46 +150.0% CF Growth: 5.0%, Discount: 15%
PEG Ratio Method growth ₹6.64 ₹5.98 - ₹7.30 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹6.64 ₹5.98 - ₹7.30 -70.0% Revenue Growth: 15.0%, Adj P/E: 8.6x
ROE Based Valuation profitability ₹44.30 ₹39.87 - ₹48.73 +100.0% ROE: 29.3%, P/E Multiple: 16x
Graham Defensive Method conservative ₹17.22 ₹15.50 - ₹18.94 -22.3% EPS: ₹0.60, BVPS: ₹21.96
Method Types: Earnings Asset DCF Growth Dividend Conservative

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Valuation Comparison Chart

RAJRILTD Intrinsic Value Analysis

What is the intrinsic value of RAJRILTD?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Raj Rayon Industries (RAJRILTD) is ₹21.96 (median value). With the current market price of ₹22.15, this represents a -0.9% variance from our estimated fair value.

The valuation range spans from ₹6.64 to ₹55.38, indicating ₹6.64 - ₹55.38.

Is RAJRILTD undervalued or overvalued?

Based on our multi-method analysis, Raj Rayon Industries (RAJRILTD) appears to be trading near calculated value by approximately 0.9%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 1.14 Industry Standard: 2.0+ Below 1.5 Measures short-term liquidity capacity
Debt to Equity Ratio 4.07 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 29.3% Industry Standard: 15%+ Above 15% Measures shareholder return efficiency
Operating Margin 6.0% Industry Standard: 20%+ Below 10% Indicates operational efficiency level
Asset Turnover Ratio 2.04x 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 ₹37 Cr ₹-5 Cr Positive Operating Cash Flow 6/10
March 2024 ₹79 Cr ₹24 Cr Positive Free Cash Flow 7/10
March 2023 ₹-75 Cr ₹-108 Cr Negative Cash Flow 3/10
March 2022 ₹-5 Cr ₹-8 Cr Negative Cash Flow 3/10
March 2021 ₹0 Cr ₹0 Cr Negative Cash Flow 3/10