Bihar Sponge Iron Ltd Valuation

BIHSPONG · Commodities · Current price ₹12.51

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DocStoX fair value
₹18
low confidence
Current price
₹13
Upside
+43.9%
P/E ratio
10.9x
P/B ratio
-1.6x
Verdict
Buy
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Is Bihar Sponge Iron Ltd undervalued?

DocStoX estimates the fair value of Bihar Sponge Iron Ltd at ₹18 per share, versus the current market price of ₹13. That puts the stock about +43.9% 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 1 independent method: Relative P/E (₹18). 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 ₹18 (base) to ₹21 (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

Bihar Sponge Iron Ltd trades at a P/E of 10.9x and a P/B of -1.6x, with a dividend yield of 0.0%. 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 Bihar Sponge Iron 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.