INDIAN HUME PIPE CO. LTD. Valuation

INDIANHUME · Capital Goods · Current price ₹398.05

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DocStoX fair value
₹1,554
low confidence
Current price
₹398
Upside
+290.5%
P/E ratio
3.8x
P/B ratio
1.2x
Verdict
Strong Buy
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Is INDIAN HUME PIPE CO. LTD. undervalued?

DocStoX estimates the fair value of INDIAN HUME PIPE CO. LTD. at ₹1,554 per share, versus the current market price of ₹398. That puts the stock about +290.5% 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 (₹915), Relative P/E (₹3,241), Graham floor (₹819). 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 ₹819 (bear) to ₹1,554 (base) to ₹3,241 (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 HUME PIPE CO. LTD. trades at a P/E of 3.8x and a P/B of 1.2x, with a dividend yield of 1.4%. 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 HUME PIPE CO. 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.