PONDY OXIDES & CHEM LTD Fair Value
POCL · Metals & Mining · Current price ₹487.95
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹317 | 17% ROE fading to 13% over ~10 yrs, on ₹262 book |
| Relative P/E | ₹1,390 | EPS × 30.6 peer-median P/E |
| Graham floor | ₹517 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | ₹781 | Street consensus 12-month target price |
Is PONDY OXIDES & CHEM LTD undervalued?
DocStoX estimates the fair value of PONDY OXIDES & CHEM LTD at ₹662 per share, versus the current market price of ₹488. That puts the stock about +35.7% 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 4 independent methods: Residual income (₹317), Relative P/E (₹1,390), Graham floor (₹517), Analyst target (₹781). 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 ₹317 (bear) to ₹662 (base) to ₹1,390 (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 PONDY OXIDES & CHEM 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.