LUMAX INDUSTRIES LTD Fair Value

LUMAXIND · Automobiles · Current price ₹5,186.5

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DocStoX fair value
₹3,100
low confidence
Current price
₹5,187
Upside to fair value
-40.2%
Verdict
Avoid
Quality score
4.8 / 10
Valuation methods
MethodFair valueStatus
Residual income₹1,28122% ROE fading to 15% over ~10 yrs, on ₹982 book
Relative P/E₹7,699EPS × 41.7 peer-median P/E
Graham floor₹2,019Conservative floor: √(22.5 × EPS × book value/share)
Analyst targetNo analyst coverage
Model it yourself — Margin of Safety Calculator
Opens pre-filled with LUMAX INDUSTRIES LTD's latest numbers.

Is LUMAX INDUSTRIES LTD undervalued?

DocStoX estimates the fair value of LUMAX INDUSTRIES LTD at ₹3,100 per share, versus the current market price of ₹5,187. That puts the stock about -40.2% 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 (₹1,281), Relative P/E (₹7,699), Graham floor (₹2,019). 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 ₹1,281 (bear) to ₹3,100 (base) to ₹7,699 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.

More on LUMAX INDUSTRIES 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.