AXITA COTTON LIMITED Valuation

AXITA · Textiles · Current price ₹7.4

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DocStoX fair value
₹2
medium confidence
Current price
₹7
Upside
-75.1%
P/E ratio
246.7x
P/B ratio
4.4x
Verdict
Avoid
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Is AXITA COTTON LIMITED undervalued?

DocStoX estimates the fair value of AXITA COTTON LIMITED at ₹2 per share, versus the current market price of ₹7. That puts the stock about -75.1% above our fair-value estimate, which we read as "Avoid". Our confidence in this estimate is medium.

How this fair value is calculated

This estimate blends 3 independent methods: Residual income (₹2), Relative P/E (₹2), Graham floor (₹1). 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 ₹1 (bear) to ₹2 (base) to ₹2 (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

AXITA COTTON LIMITED trades at a P/E of 246.7x and a P/B of 4.4x, with a dividend yield of 2.7%. 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 AXITA COTTON 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.