POLYCAB INDIA LIMITED Valuation

POLYCAB · Capital Goods · Current price ₹8,895

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DocStoX fair value
₹4,567
low confidence
Current price
₹8,895
Upside
-48.7%
P/E ratio
50.1x
P/B ratio
12.2x
Verdict
Avoid
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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 ₹8,895. That puts the stock about -48.7% 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.

Valuation multiples

POLYCAB INDIA LIMITED trades at a P/E of 50.1x and a P/B of 12.2x, with a dividend yield of 0.5%. 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 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.