Mehul Colours Ltd Intrinsic Value

MEHUL · Chemicals · Current price ₹54

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DocStoX fair value
₹112
low confidence
Current price
₹54
Upside to fair value
+107.5%
Verdict
Strong Buy
Quality score
6.4 / 10
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Is Mehul Colours Ltd undervalued?

DocStoX estimates the fair value of Mehul Colours Ltd at ₹112 per share, versus the current market price of ₹54. That puts the stock about +107.5% 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 (₹90), Relative P/E (₹197), Graham floor (₹66). 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 ₹66 (bear) to ₹112 (base) to ₹197 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.

Margin of safety

Value investors demand a margin of safety — a discount to intrinsic value that protects against being wrong. At ₹54 versus an intrinsic value of ₹112, Mehul Colours Ltd currently offers +107.5% of margin.

More on Mehul Colours 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.