Akar Auto Industries Ltd Valuation

AAIL · Automobiles · Current price ₹92

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DocStoX fair value
₹96
low confidence
Current price
₹92
Upside
+4.8%
P/E ratio
15.4x
P/B ratio
1.9x
Verdict
Expensive
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Is Akar Auto Industries Ltd undervalued?

DocStoX estimates the fair value of Akar Auto Industries Ltd at ₹96 per share, versus the current market price of ₹92. That puts the stock about +4.8% below our fair-value estimate, which we read as "Expensive". Our confidence in this estimate is low.

How this fair value is calculated

This estimate blends 3 independent methods: Residual income (₹46), Relative P/E (₹218), Graham floor (₹73). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.

Bear, base and bull scenarios

Our scenarios span ₹46 (bear) to ₹96 (base) to ₹218 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.

Valuation multiples

Akar Auto Industries Ltd trades at a P/E of 15.4x and a P/B of 1.9x, with a dividend yield of 0.7%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.

Understand the ratios

More on Akar Auto Industries Ltd

DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.