NIRLON LTD Fair Value
NIRLON · Commercial Services · Current price ₹649.85
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹300 | 74% ROE fading to 15% over ~20 yrs, on ₹52 book |
| Relative P/E | ₹1,254 | EPS × 32.7 peer-median P/E |
| Graham floor | ₹212 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | — | No analyst coverage |
Is NIRLON LTD undervalued?
DocStoX estimates the fair value of NIRLON LTD at ₹555 per share, versus the current market price of ₹650. That puts the stock about -14.7% above our fair-value estimate, which we read as "Fairly Valued". Our confidence in this estimate is low.
How this fair value is calculated
This estimate blends 3 independent methods: Residual income (₹300), Relative P/E (₹1,254), Graham floor (₹212). 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 ₹212 (bear) to ₹555 (base) to ₹1,254 (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 NIRLON 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.