AVATAR Industries Ltd Intrinsic Value

AVATAR · Automobile and Auto Components · Current price ₹172.3

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DocStoX fair value
₹23
low confidence
Current price
₹172
Upside to fair value
-86.9%
Verdict
Avoid
Quality score
3.1 / 10
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Is AVATAR Industries Ltd undervalued?

DocStoX estimates the fair value of AVATAR Industries Ltd at ₹23 per share, versus the current market price of ₹172. That puts the stock about -86.9% 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 3 independent methods: Residual income (₹29), Relative P/E (₹15), Graham floor (₹17). 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 ₹15 (bear) to ₹23 (base) to ₹29 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.

Margin of safety

Value investors demand a margin of safety — a discount to intrinsic value that protects against being wrong. At ₹172 versus an intrinsic value of ₹23, AVATAR Industries Ltd currently offers -86.9% of negative margin (i.e. a premium).

More on AVATAR 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.