INDIAN EMULSIFIERS LTD Valuation

IEML · Chemicals · Current price ₹40.5

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DocStoX fair value
₹178
low confidence
Current price
₹41
Upside
+339.4%
P/E ratio
4.6x
P/B ratio
0.6x
Verdict
Strong Buy
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Is INDIAN EMULSIFIERS LTD undervalued?

DocStoX estimates the fair value of INDIAN EMULSIFIERS LTD at ₹178 per share, versus the current market price of ₹41. That puts the stock about +339.4% 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 (₹400), Graham floor (₹126). 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 ₹90 (bear) to ₹178 (base) to ₹400 (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

INDIAN EMULSIFIERS LTD trades at a P/E of 4.6x and a P/B of 0.6x, 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 INDIAN EMULSIFIERS 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.