DCM SHRIRAM IND LTD Valuation

DCMSRIND · Consumer Goods · Current price ₹39.99

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DocStoX fair value
₹60
low confidence
Current price
₹40
Upside
+50.3%
P/E ratio
11.5x
P/B ratio
1.0x
Verdict
Expensive
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Is DCM SHRIRAM IND LTD undervalued?

DocStoX estimates the fair value of DCM SHRIRAM IND LTD at ₹60 per share, versus the current market price of ₹40. That puts the stock about +50.3% below our fair-value estimate, which we read as "Expensive". Our confidence in this estimate is low.

How this fair value is calculated

This estimate blends 3 independent methods: Residual income (₹40), Relative P/E (₹103), Graham floor (₹57). 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 ₹40 (bear) to ₹60 (base) to ₹103 (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

DCM SHRIRAM IND LTD trades at a P/E of 11.5x and a P/B of 1.0x, with a dividend yield of 1.0%. 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 DCM SHRIRAM IND 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.