POLYCAB INDIA LIMITED Fair Value
POLYCAB · Capital Goods · Current price ₹8,770
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹1,242 | 23% ROE fading to 12% over ~10 yrs, on ₹798 book |
| Relative P/E | ₹8,463 | EPS × 47.7 peer-median P/E |
| Graham floor | ₹1,785 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | ₹10,097 | Street consensus 12-month target price |
Is POLYCAB INDIA LIMITED undervalued?
DocStoX estimates the fair value of POLYCAB INDIA LIMITED at ₹4,567 per share, versus the current market price of ₹8,770. That puts the stock about -47.9% above our fair-value estimate, which we read as "Avoid". Our confidence in this estimate is low.
How this fair value is calculated
This estimate blends 4 independent methods: Residual income (₹1,242), Relative P/E (₹8,463), Graham floor (₹1,785), Analyst target (₹10,097). 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 ₹1,242 (bear) to ₹4,567 (base) to ₹10,097 (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 POLYCAB INDIA LIMITED
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.