Polychem Ltd Valuation

POLYCHEM · Chemicals · Current price ₹1,897

Full stock page
DocStoX fair value
₹6,114
low confidence
Current price
₹1,897
Upside
+222.3%
P/E ratio
4.7x
P/B ratio
1.3x
Verdict
Strong Buy
Model it yourself — Earnings Yield Calculator
Opens pre-filled with Polychem Ltd's latest numbers.

Is Polychem Ltd undervalued?

DocStoX estimates the fair value of Polychem Ltd at ₹6,114 per share, versus the current market price of ₹1,897. That puts the stock about +222.3% 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 3 independent methods: Residual income (₹1,124), Relative P/E (₹18,266), Graham floor (₹3,670). 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 ₹1,124 (bear) to ₹6,114 (base) to ₹18,266 (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

Polychem Ltd trades at a P/E of 4.7x and a P/B of 1.3x, with a dividend yield of 1.1%. 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 Polychem 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.