NIRLON LTD Valuation

NIRLON · Commercial Services · Current price ₹649

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DocStoX fair value
₹555
low confidence
Current price
₹649
Upside
-14.6%
P/E ratio
16.9x
P/B ratio
11.9x
Verdict
Fairly Valued
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Is NIRLON LTD undervalued?

DocStoX estimates the fair value of NIRLON LTD at ₹555 per share, versus the current market price of ₹649. That puts the stock about -14.6% 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.

Valuation multiples

NIRLON LTD trades at a P/E of 16.9x and a P/B of 11.9x, with a dividend yield of 4.8%. 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 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.