Sri Ramakrishna Mills Intrinsic Value

SRMCL • Textiles
Current Stock Price
₹38.45
Primary Intrinsic Value
₹14.29
Market Cap
₹26.9 Cr
-28.7% Downside
Median Value
₹27.43
Value Range
₹14 - ₹96
Assessment
Trading Above Calculated Value
Safety Margin
-40.2%

SRMCL Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
Book Value Method asset ₹14.29 ₹12.86 - ₹15.72 -62.8% Book Value/Share: ₹14.29, P/B: 1.0x
Revenue Multiple Method revenue ₹27.43 ₹24.69 - ₹30.17 -28.7% Revenue/Share: ₹34.29, P/S: 0.8x
Simple DCF (5Y) dcf ₹96.12 ₹76.90 - ₹115.34 +150.0% CF Growth: 15.0%, Discount: 15%
Method Types: Earnings Asset DCF Growth Dividend Conservative

Valuation Comparison Chart

SRMCL Intrinsic Value Analysis

What is the intrinsic value of SRMCL?

Based on our comprehensive analysis using 3 different valuation methods, the estimated intrinsic value of Sri Ramakrishna Mills (SRMCL) is ₹27.43 (median value). With the current market price of ₹38.45, this represents a -28.7% variance from our estimated fair value.

The valuation range spans from ₹14.29 to ₹96.12, indicating ₹14.29 - ₹96.12.

Is SRMCL undervalued or overvalued?

Based on our multi-method analysis, Sri Ramakrishna Mills (SRMCL) appears to be trading above calculated value by approximately 28.7%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 3.12 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Return on Equity -80.0% Industry Standard: 15%+ Below 10% Measures shareholder return efficiency
Operating Margin -23.0% Industry Standard: 20%+ Below 10% Indicates operational efficiency level
Asset Turnover Ratio 0.41x 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 2021 ₹6 Cr ₹6 Cr Positive Free Cash Flow 8/10
March 2020 ₹-1 Cr ₹-1 Cr Negative Cash Flow 3/10
March 2019 ₹-1 Cr ₹-1 Cr Negative Cash Flow 3/10
March 2018 ₹2 Cr ₹2 Cr Positive Free Cash Flow 8/10
March 2017 ₹-3 Cr ₹-3 Cr Negative Cash Flow 3/10