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Indo Rama Synthetics (India) Limited (INDORAMA) Fair Value & Analysis

Consumer Cyclical · IN · Market cap ₹11.9B

IR Indo Rama Synthetics (India) Limited INDORAMA · NSE
Price₹54.76
Fair Value₹86.71
Upside+58.4%
Quality63/100
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Healthy Growth
Thin margins · 3.1% net margin
Moderate debt · generates free cash flow
Ranks above peers (11/13)
Moderate moat 53/100
Evidence: High Range ₹46.94 – ₹137.27 Share as image

Fair value as of: Aug 15, 2026

From 23 valuation models · updated 3 days ago

Share price +9.4% over the past month.

A solid business, screening 58% undervalued on our models.

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What matters now

  • The model range is unusually wide (₹46.94 to ₹137.27). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid quality (63/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

₹83.90 ₹30.09 Fair Value ₹86.71 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 15, 2026.

How to read this chart

60‑month range ₹30.09 – ₹83.90 · fair‑value band ₹46.94 – ₹137.27 · the ₹54.76 price screens below the ₹86.71 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 15, 2026.

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Analysis

Indo Rama Synthetics (India) Limited (INDORAMA) currently trades at ₹54.76, while our model-based Fair Value estimate is ₹86.71, implying the stock looks roughly 58.4% undervalued today. The Quality Score stands at 63/100 (solid quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Indo Rama Synthetics (India) Limited generated revenue of ₹49.1B at a net margin of 3.1%. Revenue grew 0.3% year over year. It earns a return on equity of 33.9%. Net debt stands at ₹11.2B. Fundamentals as of Aug 15, 2026

Our scenario range runs from ₹46.94 (bear case) to ₹137.27 (bull case); at ₹54.76, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 27% below its 52-week high and 89% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -7% fair-value upside, at 58%, INDORAMA screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF ₹30.73 ₹51.01 ₹79.18 80
Residual Income ₹38.98 ₹53.78 ₹360.96 76
Rev-Margin DCF ₹63.73 ₹116.57 ₹174.17 74
All 23 models by family
DCF Models
FCF DCF ₹29.58 ₹51.80 ₹84.26 38
Owner Earnings ₹56.33 ₹91.47 ₹142.83 31
5Y Revenue Exit ₹63.73 ₹117.00 ₹184.28 39
5Y EBITDA Exit ₹68.14 ₹124.99 ₹189.91 41
5Y P/E Exit ₹53.74 ₹98.90 ₹144.89 38
10Y Revenue Exit ₹47.57 ₹92.96 ₹152.14 36
10Y EBITDA Exit ₹53.43 ₹98.41 ₹156.31 37
10Y P/E Exit ₹44.36 ₹80.60 ₹122.95 35
Earnings-Based
Graham-Dodd ₹39.12 ₹102.48 ₹133.75 54
PEG = 1.0 ₹19.57 ₹27.96 ₹36.35 46
EPV ₹79.35 ₹95.30 ₹109.26 59
Multiples
P/E Multiple ₹94.92 ₹126.56 ₹158.20 63
P/S Multiple ₹73.35 ₹97.80 ₹122.24 58
P/B Multiple ₹59.65 ₹79.53 ₹99.41 55
EV/EBIT ₹139.52 ₹191.49 ₹243.45 53
EV/EBITDA ₹104.01 ₹144.14 ₹184.27 54
EV/Revenue ₹88.71 ₹133.75 ₹178.78 43
Asset-Based
NCAV (Graham) ₹9.94 ₹13.32 ₹19.88 50
Growth DCF
Growth DCF ₹30.73 ₹51.01 ₹79.18 80
Rev-Margin DCF ₹63.73 ₹116.57 ₹174.17 74
Economic Profit
Residual Income ₹38.98 ₹53.78 ₹360.96 76
ROIC Compounder ₹84.14 ₹107.20 ₹132.06 72
Growth Earnings
Growth-Adj P/E ₹73.91 ₹105.59 ₹137.27 68

Widest divergence: Multiples (₹126.56) versus Asset-Based (₹13.32). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) ₹49.1B
Revenue growth (YoY) +0.3%
Net margin 3.1%
Return on equity 33.9%
Free cash flow ₹1.1B FY2026
P/E ratio 9.5
More key figures
Operating margin 8.8%
EPS (TTM) ₹5.75
EPS growth (YoY) +25.5%
Net debt ₹11.2B FY2026

Figures from reported company fundamentals · as of Aug 15, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 63/100

Of which business quality 57 · Market factors (momentum, volatility) 61

Profitability 65
Margins and returns on capital today
Quality Growth 78
Are margins and returns improving?
Cashflow 38
Earnings quality: real cash, not paper profit
Fin. Strength 12
Balance sheet, leverage, solvency risk
Investment 90
Disciplined investing over empire-building
Low Volatility 58
Calm price path (market factor)
Momentum 72
Price trend over the last 3–12 months (market factor)
52W Momentum 46
Distance to the 52-week high (market factor)
Net Issuance 92
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Indo Rama Synthetics (India) Limited manufactures and trades polyester products in India, Turkey, Nepal, and internationally. It provides various polyester products, including polyester staple fiber, partially oriented yarn, polyester filament yarn, draw texturized yarn, fully drawn yarn, and polyester chips.

Full company description

Indo Rama Synthetics (India) Limited manufactures and trades polyester products in India, Turkey, Nepal, and internationally. It provides various polyester products, including polyester staple fiber, partially oriented yarn, polyester filament yarn, draw texturized yarn, fully drawn yarn, and polyester chips. It involved in the trading of spun yarn and operations of converting flakes into chips. The company's products are used in a range of product applications, such as apparel and sportswear, home furnishings and textiles, hygiene and non-woven, automotive, and bottle for water, beverages, etc. Indo Rama Synthetics (India) Limited was incorporated in 1986 and is based in Gurugram, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Indo Rama Synthetics (India) Limited reported revenue of ₹49.1B in FY2026 versus ₹40.4B in FY2022, a compound +5.0%/yr. Reported net income was ₹1.5B in FY2026, compounding −13.6%/yr from FY2022.

Growth Quality 90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
₹49.1B
Latest YoY
+15.3%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.7%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+19.2%
Avg. growth/yr (21Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.7%
Revenue +5.0%/yr
FY22 ₹40.4B
FY23 ₹39.3B
FY24 ₹37.0B
FY25 ₹42.6B
FY26 ₹49.1B
Net income −13.6%/yr
FY22 ₹2.7B
FY23 −₹246M
FY24 −₹2.0B
FY25 ₹14.0M
FY26 ₹1.5B

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Cite: Fair Value Calculator (2026). "Indo Rama Synthetics (India) Limited Fair Value". https://www.fairvalue-calculator.com/stock/INDORAMA

Peer Group

Textile Manufacturing · 317 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 63 · Top 25%
Fair Value upside +58% · Top 25%
Return on equity (TTM) 34% · Top 25%
Return on assets 6% · Top 25%
Net margin (TTM) 3% · Above median
Operating margin (TTM) 9% · Above median
Revenue growth 0% · Above median
Debt / equity 0.86× · Higher than 75% of peers

Valuation Multiples vs Textile Manufacturing median · lower = cheaper

P/E (TTM) 9.5× · Cheaper than 75% of peers
P/B 2.30× · Pricier than 75% of peers
P/S (TTM) 0.24× · Cheaper than median
P/FCF 0.1× · Cheaper than 75% of peers
EV/EBITDA 4.7× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 8
FUTURE 2 · sector 0
PAST 100 · sector 15
HEALTH 57 · sector 95
DIVIDEND 0 · sector 35

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Textile Manufacturing stocks, each showing price versus our Fair Value estimate (as of Aug 15, 2026).

Stock Price Fair Value vs Fair Value
Shenzhou International Group 2313 HK$42.10 HK$68.24 +62%
Tongkun Group 601233 ¥22.67 ¥14.53 -36%
Inner Mongolia ERDOS Resources Co 600295 ¥12.79 ¥14.35 +12%
Far Eastern New Century Corporation 1402 27.55 TWD 25.64 TWD -7%
K.P.R. Mill Limited KPRMILL ₹1,089 ₹467.49 -57%
HMT (Xiamen) New Technical Materials Co 603306 ¥71.55 ¥11.85 -83%
Vardhman Textiles Limited VTL ₹591.90 ₹437.53 -26%
Isiklar Enerji ve Yapi Holding IEYHO 174.20 TRY 324.31 TRY +86%
Ruentex Industries Ltd 2915 54.10 TWD 133.24 TWD +146%
Welspun Living Limited WELSPUNLIV ₹165.23 ₹47.77 -71%

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Frequently asked questions

Is Indo Rama Synthetics (India) Limited (INDORAMA) overvalued or undervalued?
As of Aug 15, 2026, our model estimates a fair value of ₹86.71 versus a price of ₹54.76, about +58% (undervalued).
What is the fair value of INDORAMA?
Our model-based fair value for Indo Rama Synthetics (India) Limited is ₹86.71 (as of Aug 15, 2026), built from audited fundamentals. The current price is ₹54.76.
What is the quality score of INDORAMA?
Indo Rama Synthetics (India) Limited has a Quality Score of 63/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Indo Rama Synthetics (India) Limited (INDORAMA)?
Indo Rama Synthetics (India) Limited reported trailing-twelve-month revenue of about ₹49.1B (latest available figure, as of Aug 15, 2026).
What is the net profit margin of INDORAMA?
The net profit margin of Indo Rama Synthetics (India) Limited is about 3.1%, meaning it keeps roughly 3.1% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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