NEWMALAYALAM STEEL LTD Intrinsic Value
NMSTEEL · Capital Goods · Current price ₹22.95
Is NEWMALAYALAM STEEL LTD undervalued?
DocStoX estimates the fair value of NEWMALAYALAM STEEL LTD at ₹61 per share, versus the current market price of ₹23. That puts the stock about +164.9% below our fair-value estimate, which we read as "Buy". Our confidence in this estimate is low.
How this fair value is calculated
This estimate blends 3 independent methods: Residual income (₹45), Relative P/E (₹86), Graham floor (₹68). 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 ₹45 (bear) to ₹61 (base) to ₹86 (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 ₹23 versus an intrinsic value of ₹61, NEWMALAYALAM STEEL LTD currently offers +164.9% of margin.
More on NEWMALAYALAM STEEL 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.