Padam Cotton Yarns Ltd Valuation

PADAMCO · Consumer Discretionary · Current price ₹0.96

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DocStoX fair value
₹11
low confidence
Current price
₹1
Upside
+1045.8%
P/E ratio
2.0x
P/B ratio
0.5x
Verdict
Strong Buy
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Is Padam Cotton Yarns Ltd undervalued?

DocStoX estimates the fair value of Padam Cotton Yarns Ltd at ₹11 per share, versus the current market price of ₹1. That puts the stock about +1045.8% 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 1 independent method: Residual income (₹11). 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 ₹9 (bear) to ₹11 (base) to ₹13 (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

Padam Cotton Yarns Ltd trades at a P/E of 2.0x and a P/B of 0.5x. 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 Padam Cotton Yarns 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.