SML MAHINDRA LIMITED Fair Value
SMLMAH · Capital Goods · Current price ₹5,401.5
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹450 | 31% ROE fading to 13% over ~3 yrs, on ₹358 book |
| Relative P/E | ₹3,221 | EPS × 29.2 peer-median P/E |
| Graham floor | ₹943 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | — | No analyst coverage |
Is SML MAHINDRA LIMITED undervalued?
DocStoX estimates the fair value of SML MAHINDRA LIMITED at ₹1,306 per share, versus the current market price of ₹5,402. That puts the stock about -75.8% 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 (₹450), Relative P/E (₹3,221), Graham floor (₹943). 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 ₹450 (bear) to ₹1,306 (base) to ₹3,221 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.
More on SML MAHINDRA LIMITED
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.