AJANTA PHARMA LIMITED Fair Value
AJANTPHARM · Healthcare · Current price ₹3,505
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹1,017 | 27% ROE fading to 12% over ~20 yrs, on ₹362 book |
| Relative P/E | ₹3,306 | EPS × 39.1 peer-median P/E |
| Graham floor | ₹830 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | ₹3,701 | Street consensus 12-month target price |
Is AJANTA PHARMA LIMITED undervalued?
DocStoX estimates the fair value of AJANTA PHARMA LIMITED at ₹2,003 per share, versus the current market price of ₹3,505. That puts the stock about -42.9% above our fair-value estimate, which we read as "Avoid". Our confidence in this estimate is low.
How this fair value is calculated
This estimate blends 4 independent methods: Residual income (₹1,017), Relative P/E (₹3,306), Graham floor (₹830), Analyst target (₹3,701). 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 ₹830 (bear) to ₹2,003 (base) to ₹3,701 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.
More on AJANTA PHARMA LIMITED
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.