Prima Industries Ltd Valuation

PRIMAIN · FMCG · Current price ₹17.42

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DocStoX fair value
₹6
low confidence
Current price
₹17
Upside
-66.6%
P/E ratio
3.9x
P/B ratio
1.5x
Verdict
Avoid
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Is Prima Industries Ltd undervalued?

DocStoX estimates the fair value of Prima Industries Ltd at ₹6 per share, versus the current market price of ₹17. That puts the stock about -66.6% 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 (₹9), Relative P/E (₹1), Graham floor (₹3). 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 (bear) to ₹6 (base) to ₹9 (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

Prima Industries Ltd trades at a P/E of 3.9x and a P/B of 1.5x, with a dividend yield of 0.0%. 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 Prima Industries 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.