RELIANCE CHEMOTEX IND LTD Valuation

RELCHEMQ · Textiles · Current price ₹112

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DocStoX fair value
₹196
medium confidence
Current price
₹112
Upside
+74.9%
P/E ratio
16.1x
P/B ratio
0.6x
Verdict
Expensive
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Is RELIANCE CHEMOTEX IND LTD undervalued?

DocStoX estimates the fair value of RELIANCE CHEMOTEX IND LTD at ₹196 per share, versus the current market price of ₹112. That puts the stock about +74.9% below our fair-value estimate, which we read as "Expensive". Our confidence in this estimate is medium.

How this fair value is calculated

This estimate blends 3 independent methods: Residual income (₹173), Relative P/E (₹252), Graham floor (₹177). 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 ₹166 (bear) to ₹196 (base) to ₹252 (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

RELIANCE CHEMOTEX IND LTD trades at a P/E of 16.1x and a P/B of 0.6x, with a dividend yield of 0.4%. 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 RELIANCE CHEMOTEX IND 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.