Rathi Steel & Power Intrinsic Value

RATHIST • Industrial Products
Current Stock Price
₹27.50
Primary Intrinsic Value
₹10.80
Market Cap
₹261.2 Cr
-47.6% Downside
Median Value
₹14.42
Value Range
₹8 - ₹48
Assessment
Trading Above Calculated Value
Safety Margin
-90.7%

RATHIST Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹10.80 ₹8.64 - ₹12.96 -60.7% EPS: ₹0.90, Sector P/E: 12x
Book Value Method asset ₹14.42 ₹12.98 - ₹15.86 -47.6% Book Value/Share: ₹14.42, P/B: 1.0x
Revenue Multiple Method revenue ₹47.83 ₹43.05 - ₹52.61 +73.9% Revenue/Share: ₹59.79, P/S: 0.8x
EBITDA Multiple Method earnings ₹14.53 ₹13.08 - ₹15.98 -47.2% EBITDA: ₹25.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹23.45 ₹18.76 - ₹28.14 -14.7% CF Growth: 5.0%, Discount: 15%
PEG Ratio Method growth ₹8.25 ₹7.42 - ₹9.08 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹8.25 ₹7.42 - ₹9.08 -70.0% Revenue Growth: 1.0%, Adj P/E: 8.0x
ROE Based Valuation profitability ₹13.75 ₹12.38 - ₹15.13 -50.0% ROE: 5.8%, P/E Multiple: 10x
Graham Defensive Method conservative ₹17.09 ₹15.38 - ₹18.80 -37.9% EPS: ₹0.90, BVPS: ₹14.42
Method Types: Earnings Asset DCF Growth Dividend Conservative

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Valuation Comparison Chart

RATHIST Intrinsic Value Analysis

What is the intrinsic value of RATHIST?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Rathi Steel & Power (RATHIST) is ₹14.42 (median value). With the current market price of ₹27.50, this represents a -47.6% variance from our estimated fair value.

The valuation range spans from ₹8.25 to ₹47.83, indicating ₹8.25 - ₹47.83.

Is RATHIST undervalued or overvalued?

Based on our multi-method analysis, Rathi Steel & Power (RATHIST) appears to be trading above calculated value by approximately 47.6%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 13.86 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Debt to Equity Ratio 1.93 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 5.8% Industry Standard: 15%+ Below 10% Measures shareholder return efficiency
Operating Margin 4.0% Industry Standard: 20%+ Below 10% Indicates operational efficiency level
Asset Turnover Ratio 2.14x 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 ₹-11 Cr ₹-25 Cr Negative Cash Flow 3/10
March 2024 ₹24 Cr ₹19 Cr Positive Free Cash Flow 8/10
March 2023 ₹105 Cr ₹102 Cr Positive Free Cash Flow 8/10
March 2022 ₹-12 Cr ₹-12 Cr Negative Cash Flow 3/10
March 2021 ₹196 Cr ₹196 Cr Positive Free Cash Flow 8/10