PONDY OXIDES & CHEM LTD Valuation

POCL · Metals & Mining · Current price ₹487.95

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DocStoX fair value
₹662
low confidence
Current price
₹488
Upside
+35.7%
P/E ratio
10.7x
P/B ratio
5.0x
Verdict
Buy
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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.

Valuation multiples

PONDY OXIDES & CHEM LTD trades at a P/E of 10.7x and a P/B of 5.0x, with a dividend yield of 1.0%. 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 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.