Riddhi Steel & Tube Ltd Valuation

RSTL · Industrials · Current price ₹196.4

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DocStoX fair value
₹153
low confidence
Current price
₹196
Upside
-22.3%
P/E ratio
32.1x
P/B ratio
3.3x
Verdict
Expensive
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Is Riddhi Steel & Tube Ltd undervalued?

DocStoX estimates the fair value of Riddhi Steel & Tube Ltd at ₹153 per share, versus the current market price of ₹196. That puts the stock about -22.3% above our fair-value estimate, which we read as "Expensive". Our confidence in this estimate is low.

How this fair value is calculated

This estimate blends 3 independent methods: Residual income (₹58), Relative P/E (₹378), 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 ₹58 (bear) to ₹153 (base) to ₹378 (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

Riddhi Steel & Tube Ltd trades at a P/E of 32.1x and a P/B of 3.3x, 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 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.