Amarjothi Spinning Mills Ltd Valuation

AMARJOTHI · Consumer Discretionary · Current price ₹181.9

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DocStoX fair value
₹343
low confidence
Current price
₹182
Upside
+88.6%
P/E ratio
12.9x
P/B ratio
0.6x
Verdict
Buy
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Is Amarjothi Spinning Mills Ltd undervalued?

DocStoX estimates the fair value of Amarjothi Spinning Mills Ltd at ₹343 per share, versus the current market price of ₹182. That puts the stock about +88.6% below our fair-value estimate, which we read as "Buy". Our confidence in this estimate is low.

How this fair value is calculated

This estimate blends 3 independent methods: Residual income (₹270), Relative P/E (₹510), Graham floor (₹306). 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 ₹270 (bear) to ₹343 (base) to ₹510 (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

Amarjothi Spinning Mills Ltd trades at a P/E of 12.9x and a P/B of 0.6x, with a dividend yield of 1.2%. 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 Amarjothi Spinning Mills 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.