Rama Steel Tubes Intrinsic Value
RAMASTEEL Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹2.61 | ₹2.09 - ₹3.13 | -70.0% | EPS: ₹0.04, Sector P/E: 12x |
| Book Value Method | asset | ₹21.78 | ₹19.60 - ₹23.96 | +150.1% | Book Value/Share: ₹24.06, P/B: 1.0x |
| Revenue Multiple Method | revenue | ₹17.42 | ₹15.68 - ₹19.16 | +100.0% | Revenue/Share: ₹83.35, P/S: 0.8x |
| EBITDA Multiple Method | earnings | ₹10.84 | ₹9.76 - ₹11.92 | +24.5% | EBITDA: ₹28.00Cr, EV/EBITDA: 6x |
| Simple DCF (5Y) | dcf | ₹21.78 | ₹17.42 - ₹26.14 | +150.1% | CF Growth: 15.0%, Discount: 15% |
| PEG Ratio Method | growth | ₹2.61 | ₹2.35 - ₹2.87 | -70.0% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹2.61 | ₹2.35 - ₹2.87 | -70.0% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| Graham Defensive Method | conservative | ₹4.65 | ₹4.19 - ₹5.12 | -46.6% | EPS: ₹0.04, BVPS: ₹24.06 |
Want to compare with current market value? Check RAMASTEEL share price latest .
Valuation Comparison Chart
RAMASTEEL Intrinsic Value Analysis
What is the intrinsic value of RAMASTEEL?
Based on our comprehensive analysis using 8 different valuation methods, the estimated intrinsic value of Rama Steel Tubes (RAMASTEEL) is ₹10.84 (median value). With the current market price of ₹8.71, this represents a +24.5% variance from our estimated fair value.
The valuation range spans from ₹2.61 to ₹21.78, indicating ₹2.61 - ₹21.78.
Is RAMASTEEL undervalued or overvalued?
Based on our multi-method analysis, Rama Steel Tubes (RAMASTEEL) appears to be trading below calculated value by approximately 24.5%.
Financial Health Analysis
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Current Ratio | 69.56 | Industry Standard: 2.0+ | Above 2.0 | Measures short-term liquidity capacity |
| Debt to Equity Ratio | 2.03 | Industry Standard: <0.5 | Above 1.0 | Indicates financial leverage level |
| Return on Equity | 1.1% | Industry Standard: 15%+ | Below 10% | Measures shareholder return efficiency |
| Operating Margin | 2.0% | Industry Standard: 20%+ | Below 10% | Indicates operational efficiency level |
| Asset Turnover Ratio | 1.70x | Industry Standard: 1.0x+ | Above 1.0x | Measures asset utilization efficiency |
Related Pages for Rama Steel Tubes
Additional stock information and data for RAMASTEEL
Cash Flow Quality Analysis
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2025 | ₹51 Cr | ₹51 Cr | Positive Free Cash Flow | 8/10 |
| March 2024 | ₹18 Cr | ₹18 Cr | Positive Free Cash Flow | 8/10 |
| March 2023 | ₹-96 Cr | ₹-123 Cr | Negative Cash Flow | 3/10 |
| March 2022 | ₹-35 Cr | ₹-40 Cr | Negative Cash Flow | 3/10 |
| March 2021 | ₹25 Cr | ₹20 Cr | Positive Free Cash Flow | 8/10 |