Riddhi Steel & Tube Ltd Intrinsic Value

RSTL · Industrial Products · Current price ₹206.2

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DocStoX fair value
₹82
low confidence
Current price
₹206
Upside to fair value
-60.4%
Verdict
Avoid
Quality score
4.3 / 10
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Is Riddhi Steel & Tube Ltd undervalued?

DocStoX estimates the fair value of Riddhi Steel & Tube Ltd at ₹82 per share, versus the current market price of ₹206. That puts the stock about -60.4% 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 (₹57), Relative P/E (₹125), Graham floor (₹88). 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 ₹57 (bear) to ₹82 (base) to ₹125 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.

Margin of safety

Value investors demand a margin of safety — a discount to intrinsic value that protects against being wrong. At ₹206 versus an intrinsic value of ₹82, Riddhi Steel & Tube Ltd currently offers -60.4% of negative margin (i.e. a premium).

More on Riddhi Steel & Tube 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.