Rajapalayam Mills Intrinsic Value

RAJPALAYAM • Textiles
Current Stock Price
₹824.20
Primary Intrinsic Value
₹912.00
Market Cap
₹741.8 Cr
+11.2% Upside
Median Value
₹916.11
Value Range
₹486 - ₹2097
Assessment
Trading Below Median Value
Safety Margin
10.0%

RAJPALAYAM Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹912.00 ₹729.60 - ₹1094.40 +10.7% EPS: ₹76.00, Sector P/E: 12x
Book Value Method asset ₹2060.50 ₹1854.45 - ₹2266.55 +150.0% Book Value/Share: ₹2571.11, P/B: 1.0x
Revenue Multiple Method revenue ₹874.67 ₹787.20 - ₹962.14 +6.1% Revenue/Share: ₹1093.33, P/S: 0.8x
EBITDA Multiple Method earnings ₹916.11 ₹824.50 - ₹1007.72 +11.2% EBITDA: ₹184.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹1750.74 ₹1400.59 - ₹2100.89 +112.4% CF Growth: 15.0%, Discount: 15%
PEG Ratio Method growth ₹486.40 ₹437.76 - ₹535.04 -41.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹626.24 ₹563.62 - ₹688.86 -24.0% Revenue Growth: 6.0%, Adj P/E: 8.2x
Graham Defensive Method conservative ₹2096.81 ₹1887.13 - ₹2306.49 +154.4% EPS: ₹76.00, BVPS: ₹2571.11
Method Types: Earnings Asset DCF Growth Dividend Conservative

Want to compare with current market value? Check RAJPALAYAM share price latest .

Valuation Comparison Chart

RAJPALAYAM Intrinsic Value Analysis

What is the intrinsic value of RAJPALAYAM?

Based on our comprehensive analysis using 8 different valuation methods, the estimated intrinsic value of Rajapalayam Mills (RAJPALAYAM) is ₹916.11 (median value). With the current market price of ₹824.20, this represents a +11.2% variance from our estimated fair value.

The valuation range spans from ₹486.40 to ₹2096.81, indicating ₹486.40 - ₹2096.81.

Is RAJPALAYAM undervalued or overvalued?

Based on our multi-method analysis, Rajapalayam Mills (RAJPALAYAM) appears to be trading below median value by approximately 11.2%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 0.87 Industry Standard: 2.0+ Below 1.5 Measures short-term liquidity capacity
Debt to Equity Ratio 1.55 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 2.9% Industry Standard: 15%+ Below 10% Measures shareholder return efficiency
Operating Margin 17.0% Industry Standard: 20%+ Above 10% Indicates operational efficiency level
Asset Turnover Ratio 0.27x Industry Standard: 1.0x+ Below 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹116 Cr ₹91 Cr Positive Free Cash Flow 8/10
March 2024 ₹149 Cr ₹126 Cr Positive Free Cash Flow 8/10
March 2023 ₹-46 Cr ₹-198 Cr Negative Cash Flow 3/10
March 2022 ₹4 Cr ₹-72 Cr Positive Operating Cash Flow 6/10
March 2021 ₹34 Cr ₹22 Cr Positive Free Cash Flow 8/10