Shelter Pharma Ltd Valuation

SHELTER · Healthcare · Current price ₹28.04

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DocStoX fair value
₹88
low confidence
Current price
₹28
Upside
+213.9%
P/E ratio
4.5x
P/B ratio
0.7x
Verdict
Strong Buy
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Is Shelter Pharma Ltd undervalued?

DocStoX estimates the fair value of Shelter Pharma Ltd at ₹88 per share, versus the current market price of ₹28. That puts the stock about +213.9% below our fair-value estimate, which we read as "Strong Buy". Our confidence in this estimate is low.

How this fair value is calculated

This estimate blends 3 independent methods: Residual income (₹55), Relative P/E (₹163), Graham floor (₹72). 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 ₹55 (bear) to ₹88 (base) to ₹163 (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

Shelter Pharma Ltd trades at a P/E of 4.5x and a P/B of 0.7x, with a dividend yield of 1.3%. 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 Shelter Pharma 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.