Rane Madras Intrinsic Value
RML Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹372.96 | ₹298.37 - ₹447.55 | -53.0% | EPS: ₹31.08, Sector P/E: 12x |
| Book Value Method | asset | ₹419.38 | ₹377.44 - ₹461.32 | -47.2% | Book Value/Share: ₹419.38, P/B: 1.0x |
| Revenue Multiple Method | revenue | ₹1588.00 | ₹1429.20 - ₹1746.80 | +100.0% | Revenue/Share: ₹2307.50, P/S: 0.8x |
| EBITDA Multiple Method | earnings | ₹1194.03 | ₹1074.63 - ₹1313.43 | +50.4% | EBITDA: ₹324.00Cr, EV/EBITDA: 6x |
| Simple DCF (5Y) | dcf | ₹1985.00 | ₹1588.00 - ₹2382.00 | +150.0% | CF Growth: 15.0%, Discount: 15% |
| PEG Ratio Method | growth | ₹238.20 | ₹214.38 - ₹262.02 | -70.0% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹256.10 | ₹230.49 - ₹281.71 | -67.7% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹660.00 | ₹594.00 - ₹726.00 | -16.9% | ROE: 13.1%, P/E Multiple: 12x |
| Graham Defensive Method | conservative | ₹541.54 | ₹487.39 - ₹595.69 | -31.8% | EPS: ₹31.08, BVPS: ₹419.38 |
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Valuation Comparison Chart
RML Intrinsic Value Analysis
What is the intrinsic value of RML?
Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Rane Madras (RML) is ₹541.54 (median value). With the current market price of ₹794.00, this represents a -31.8% variance from our estimated fair value.
The valuation range spans from ₹238.20 to ₹1985.00, indicating ₹238.20 - ₹1985.00.
Is RML undervalued or overvalued?
Based on our multi-method analysis, Rane Madras (RML) appears to be trading above calculated value by approximately 31.8%.
Financial Health Analysis
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Current Ratio | 4.46 | Industry Standard: 2.0+ | Above 2.0 | Measures short-term liquidity capacity |
| Debt to Equity Ratio | 3.38 | Industry Standard: <0.5 | Above 1.0 | Indicates financial leverage level |
| Return on Equity | 13.1% | Industry Standard: 15%+ | Above 10% | Measures shareholder return efficiency |
| Operating Margin | 8.0% | Industry Standard: 20%+ | Below 10% | Indicates operational efficiency level |
| Asset Turnover Ratio | 1.63x | Industry Standard: 1.0x+ | Above 1.0x | Measures asset utilization efficiency |
Related Pages for Rane Madras
Additional stock information and data for RML
Cash Flow Quality Analysis
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2025 | ₹316 Cr | ₹243 Cr | Positive Free Cash Flow | 8/10 |
| March 2024 | ₹191 Cr | ₹117 Cr | Positive Free Cash Flow | 8/10 |
| March 2023 | ₹88 Cr | ₹35 Cr | Positive Free Cash Flow | 7/10 |
| March 2022 | ₹-6 Cr | ₹-68 Cr | Negative Cash Flow | 3/10 |
| March 2021 | ₹46 Cr | ₹6 Cr | Positive Free Cash Flow | 7/10 |