Modern Steels Ltd Valuation

MDRNSTL · Industrial Products · Current price ₹14

Full stock page
DocStoX fair value
₹19
medium confidence
Current price
₹14
Upside
+33.1%
P/E ratio
4.3x
P/B ratio
1.0x
Verdict
Buy
Model it yourself — Earnings Yield Calculator
Opens pre-filled with Modern Steels Ltd's latest numbers.

Is Modern Steels Ltd undervalued?

DocStoX estimates the fair value of Modern Steels Ltd at ₹19 per share, versus the current market price of ₹14. That puts the stock about +33.1% 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 (₹23), Relative P/E (₹14), Graham floor (₹14). 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 ₹14 (bear) to ₹19 (base) to ₹23 (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

Modern Steels Ltd trades at a P/E of 4.3x and a P/B of 1.0x, 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 Modern Steels 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.