Deepak Chemtex Ltd Valuation

DEEPAKCHEM · Commodities · Current price ₹74.76

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DocStoX fair value
₹130
low confidence
Current price
₹75
Upside
+73.9%
P/E ratio
6.5x
P/B ratio
1.3x
Verdict
Strong Buy
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Is Deepak Chemtex Ltd undervalued?

DocStoX estimates the fair value of Deepak Chemtex Ltd at ₹130 per share, versus the current market price of ₹75. That puts the stock about +73.9% below our fair-value estimate, which we read as "Strong Buy". Our confidence in this estimate is low.

How this fair value is calculated

This estimate blends 3 independent methods: Residual income (₹90), Relative P/E (₹250), Graham floor (₹85). 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 ₹85 (bear) to ₹130 (base) to ₹250 (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

Deepak Chemtex Ltd trades at a P/E of 6.5x and a P/B of 1.3x, 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 Deepak Chemtex 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.