HINDUSTAN COMPOSITES LTD. Valuation

HINDCOMPOS · Automobile and Auto Components · Current price ₹404.85

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DocStoX fair value
₹715
medium confidence
Current price
₹405
Upside
+76.6%
P/E ratio
19.2x
P/B ratio
0.6x
Verdict
Buy
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Is HINDUSTAN COMPOSITES LTD. undervalued?

DocStoX estimates the fair value of HINDUSTAN COMPOSITES LTD. at ₹715 per share, versus the current market price of ₹405. That puts the stock about +76.6% below our fair-value estimate, which we read as "Buy". Our confidence in this estimate is medium.

How this fair value is calculated

This estimate blends 3 independent methods: Residual income (₹681), Relative P/E (₹879), Graham floor (₹606). 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 ₹606 (bear) to ₹715 (base) to ₹879 (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

HINDUSTAN COMPOSITES LTD. trades at a P/E of 19.2x and a P/B of 0.6x, with a dividend yield of 0.5%. 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 HINDUSTAN COMPOSITES 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.