Gagan Gases Ltd Valuation

GAGAN · Commodities · Current price ₹19.63

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DocStoX fair value
₹7
medium confidence
Current price
₹20
Upside
-65.9%
P/E ratio
32.7x
P/B ratio
2.6x
Verdict
Avoid
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Is Gagan Gases Ltd undervalued?

DocStoX estimates the fair value of Gagan Gases Ltd at ₹7 per share, versus the current market price of ₹20. That puts the stock about -65.9% 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 2 independent methods: Residual income (₹7), Graham floor (₹6). 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 ₹6 (bear) to ₹7 (base) to ₹8 (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

Gagan Gases Ltd trades at a P/E of 32.7x and a P/B of 2.6x, 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 Gagan Gases 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.