POWER MECH PROJECTS LTD. Valuation

POWERMECH · Construction · Current price ₹2,554.7

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DocStoX fair value
₹1,753
low confidence
Current price
₹2,555
Upside
-31.4%
P/E ratio
22.2x
P/B ratio
3.4x
Verdict
Avoid
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Is POWER MECH PROJECTS LTD. undervalued?

DocStoX estimates the fair value of POWER MECH PROJECTS LTD. at ₹1,753 per share, versus the current market price of ₹2,555. That puts the stock about -31.4% 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 3 independent methods: Residual income (₹955), Relative P/E (₹3,523), Graham floor (₹1,437). 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 ₹955 (bear) to ₹1,753 (base) to ₹3,523 (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

POWER MECH PROJECTS LTD. trades at a P/E of 22.2x and a P/B of 3.4x, with a dividend yield of 0.1%. 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 POWER MECH PROJECTS 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.