ELGI EQUIPMENTS LTD Intrinsic Value

ELGIEQUIP · Capital Goods · Current price ₹581.7

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DocStoX fair value
₹283
low confidence
Current price
₹582
Upside to fair value
-51.3%
Verdict
Avoid
Quality score
4.5 / 10
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Is ELGI EQUIPMENTS LTD undervalued?

DocStoX estimates the fair value of ELGI EQUIPMENTS LTD at ₹283 per share, versus the current market price of ₹582. That puts the stock about -51.3% 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 (₹105), Relative P/E (₹716), Graham floor (₹147). 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 ₹105 (bear) to ₹283 (base) to ₹716 (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 ₹582 versus an intrinsic value of ₹283, ELGI EQUIPMENTS LTD currently offers -51.3% of negative margin (i.e. a premium).

More on ELGI EQUIPMENTS 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.