Magna Electro Castings Ltd Fair Value
MAGNAELQ · Industrials · Current price ₹1,149.2
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹449 | 18% ROE fading to 12% over ~10 yrs, on ₹343 book |
| Relative P/E | ₹1,496 | EPS × 35.0 peer-median P/E |
| Graham floor | ₹574 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | — | No analyst coverage |
Is Magna Electro Castings Ltd undervalued?
DocStoX estimates the fair value of Magna Electro Castings Ltd at ₹763 per share, versus the current market price of ₹1,149. That puts the stock about -33.6% 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 (₹449), Relative P/E (₹1,496), Graham floor (₹574). 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 ₹449 (bear) to ₹763 (base) to ₹1,496 (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 Magna Electro Castings 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.