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

Consumer Cyclical · IN · Market cap ₹14.9B (≈ $158M) · ISIN INE156A01012

What is Indo Rama Synthetics (India) Limited really worth?

IR Indo Rama Synthetics (India) Limited INDORAMA · BSE
Price₹73.21
Fair Value₹112.37
Upside+53.5%
Quality58/100

A solid business, trading 35% below our fair value of ₹112.37.

As of Aug 21, 2026, the fair value of Indo Rama Synthetics (India) Limited is ₹112.37 per share against a price of ₹73.21, so the fair value sits 53% above the price. A model estimate blended from multiple valuation models, recalculated regularly.

Strengths

Moderate debt · generates free cash flow

Risks

!Mixed Growth (revenue 5y +19.9 %/yr)
!Thin margins · 2.8% net margin
!Moderate moat 45/100
!Evidence only low, so the estimate is less certain
Evidence: Low Range ₹55.21 – ₹157.96

Fair value as of: Aug 21, 2026

From 24 valuation models · updated 16 days ago

Share price +16.8% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The model range is unusually wide (₹55.21 to ₹157.96). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • Solid quality (58/100) at a price below fair value, the discount is the argument here, not the business quality.

Price vs Fair Value (5 years)

₹84.00 ₹29.98 Fair Value ₹112.37 May 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 21, 2026.

How to read this chart

60‑month range ₹29.98 – ₹84.00 · fair‑value band ₹55.21 – ₹157.96 · the ₹73.21 price screens below the ₹112.37 fair value. Dashed = 300-day average. As of Aug 21, 2026.

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Analysis

Indo Rama Synthetics (India) Limited (INDORAMA) currently trades at ₹73.21, while our model-based Fair Value estimate is ₹112.37, implying the stock looks roughly 34.8% undervalued today. The Quality Score stands at 58/100 (solid quality), in the Consumer Cyclical sector. Bull case: the DCF Models group reads highest at a median of ₹137.20 per share, and 22 of the 24 models we run sit above the ₹73.21 price. Bear case: the Asset-Based group reads lowest at ₹13.32, and 2 of the 24 models stay below the price. Evidence for this calculation is low.

Over the trailing twelve months, Indo Rama Synthetics (India) Limited generated revenue of ₹49.1B at a net margin of 2.8%. Revenue grew 1.4% year over year. It earns a return on equity of 37.8%. Net debt stands at ₹11.1B. Fundamentals as of Aug 21, 2026

Our scenario range runs from ₹55.21 (bear case) to ₹157.96 (bull case); at ₹73.21, 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 2% below its 52-week high and 155% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at −36% fair-value upside, at 53%, INDORAMA screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly ₹2.29 per share, which is 2.6 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

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
FCF DCF ₹40.44 ₹91.97 ₹185.61 75
EPV ₹82.60 ₹99.10 ₹113.54 74
Growth DCF ₹39.54 ₹85.45 ₹165.79 74
All 24 models by family
DCF Models
FCF DCF ₹40.44 ₹91.97 ₹185.61 75
Owner Earnings ₹73.51 ₹155.02 ₹303.16 72
5Y Revenue Exit ₹73.77 ₹159.33 ₹280.22 69
5Y EBITDA Exit ₹78.79 ₹170.02 ₹288.67 72
5Y P/E Exit ₹62.40 ₹135.11 ₹221.16 68
10Y Revenue Exit ₹58.67 ₹137.20 ₹266.74 62
10Y EBITDA Exit ₹65.79 ₹145.18 ₹274.04 64
10Y P/E Exit ₹54.78 ₹119.12 ₹215.71 61
Earnings-Based
Graham-Dodd ₹39.12 ₹202.04 ₹279.35 64
Lynch FV ₹55.21 ₹78.87 ₹102.53 61
PEG = 1.0 ₹55.21 ₹78.87 ₹102.53 57
EPV ₹82.60 ₹99.10 ₹113.54 74
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 66
EV/EBITDA ₹104.01 ₹144.14 ₹184.27 67
EV/Revenue ₹88.71 ₹133.75 ₹178.78 53
Asset-Based
NCAV (Graham) ₹9.94 ₹13.32 ₹19.88 54
Growth DCF
Growth DCF ₹39.54 ₹85.45 ₹165.79 74
Rev-Margin DCF ₹73.77 ₹155.43 ₹264.63 70
Economic Profit
Residual Income ₹39.61 ₹54.62 ₹380.54 64
ROIC Compounder ₹97.30 ₹136.05 ₹185.22 71
Growth Earnings
Growth-Adj P/E ₹84.90 ₹121.29 ₹157.68 67

Widest divergence: DCF Models (₹137.20) versus Asset-Based (₹13.32). Highest evidence: FCF DCF (75).

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Key figures & financial health

P/E ratio 13.9
P/S ratio 0.43 P/E × margin
EPS (TTM) ₹5.25 price ÷ EPS = P/E 13.9
Net margin 3.1% FY2026
Return on equity 37.8% TTM
Return on assets (EBIT) 4.6% avg 5y
More key figures
Profitability
Operating margin 3.7% TTM
Growth
Revenue (TTM) ₹49.1B TTM
Revenue growth (YoY) +1.4% 3y avg +6.9%
EPS growth (YoY) −35.8%
Balance sheet & cash flow
Free cash flow ₹1.1B FY2026
Net debt ₹11.1B FY2026 · ≈ 10.1 yrs of FCF

Figures from reported company fundamentals · as of Aug 21, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 58/100

Of which business quality 53 · Market factors (momentum, volatility) 77

Profitability 65
Margins and returns on capital today
Quality Growth 63
Are margins and returns improving?
Cashflow 38
Earnings quality: real cash, not paper profit
Fin. Strength 13
Balance sheet, leverage, solvency risk
Investment 90
Disciplined investing over empire-building
Low Volatility 57
Calm price path (market factor)
Momentum 85
Price trend over the last 3–12 months (market factor)
52W Momentum 88
Distance to the 52-week high (market factor)
Net Issuance 82
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Indo Rama Synthetics (India) Limited trades in and manufactures of polyester products in India, Turkey, Nepal, and internationally. The company offers 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 trades in and manufactures of polyester products in India, Turkey, Nepal, and internationally. The company offers 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 applications, such as apparel and sportswear, home furnishings and textiles, hygiene and non-woven, automotive, and bottle for water, beverages, etc. The company 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 ₹39.1B in FY2022, a compound +5.9%/yr. Reported net income was ₹1.5B in FY2026, compounding −13.6%/yr from FY2022.

Growth Quality 90/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
₹49.1B
Latest YoY
+15.3%
Avg. revenue 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.
+6.9%
Avg. revenue 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.
+19.9%
Avg. revenue growth/yr (10Y) 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.
+5.8%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
−4.7% · in INR
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share−4.7%
Dividend yield0.0%
Operating margin (EBIT) Operating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.4.5% (2021) → 6.1% (2026) · rising
Worst earnings drop168% (2024) (loss year, drop beyond 100%) · in INR
Revenue +5.9%/yr
FY22 ₹39.1B
FY23 ₹40.2B
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.BSE

Peer Group

Textile Manufacturing · 331 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 58 · Above median
Fair Value upside +19% · Above median
Return on equity (TTM) 38% · Top 25%
Return on assets 6% · Top 25%
Net margin (TTM) 3% · Above median
Operating margin (TTM) 4% · Below median
Revenue growth 1% · Above median
Debt / equity 0.86× · Higher than 75% of peers

Valuation Multiples vs Textile Manufacturing median · lower = cheaper

P/E (TTM) 13.9× · Cheaper than median
P/B 2.88× · Pricier than 75% of peers
P/S (TTM) 0.31× · Cheaper than median
P/FCF 0.1× · Cheaper than median
EV/EBITDA 6.2× · Cheaper than median

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

Similar stocks

10 more Textile Manufacturing stocks, each showing price versus our Fair Value estimate (as of Aug 21, 2026).

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Albany International Corp AIN $59.92 $18.40 −69%
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Frequently asked questions

Is Indo Rama Synthetics (India) Limited (INDORAMA) overvalued or undervalued?
As of Aug 21, 2026, our model estimates a fair value of ₹112.37 versus a price of ₹73.21, about +53% upside (undervalued).
What is the fair value of INDORAMA?
Our model-based fair value for Indo Rama Synthetics (India) Limited is ₹112.37 (as of Aug 21, 2026), built from audited fundamentals. The current price: ₹73.21.
What is the quality score of INDORAMA?
Indo Rama Synthetics (India) Limited has a Quality Score of 58/100. 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 price target for Indo Rama Synthetics (India) Limited (INDORAMA)?
Our model-based price target is the fair value of ₹112.37 (as of Aug 21, 2026) from 24 valuation models. Cautious scenario ₹55.21, optimistic scenario ₹157.96. It is a calculation from audited fundamentals, not an analyst target.
What is the Indo Rama Synthetics (India) Limited stock forecast for 2026?
Our models put fair value at ₹112.37, about +53% upside versus a price of ₹73.21 (undervalued). Cautious scenario ₹55.21, optimistic scenario ₹157.96. The calculation is refreshed regularly with new filings.
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 21, 2026).
What is the net profit margin of INDORAMA?
The net profit margin of Indo Rama Synthetics (India) Limited is about 2.8%, meaning it keeps roughly 2.8% of revenue as net income. Based on the latest reported figures.
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