SMS PHARMACEUTICALS LTD. Fair Value
SMSPHARMA · Healthcare · Current price ₹368.45
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹86 | 14% ROE fading to 13% over ~3 yrs, on ₹84 book |
| Relative P/E | ₹418 | EPS × 38.4 peer-median P/E |
| Graham floor | ₹143 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | ₹464 | Street consensus 12-month target price |
Is SMS PHARMACEUTICALS LTD. undervalued?
DocStoX estimates the fair value of SMS PHARMACEUTICALS LTD. at ₹238 per share, versus the current market price of ₹368. That puts the stock about -35.5% 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 4 independent methods: Residual income (₹86), Relative P/E (₹418), Graham floor (₹143), Analyst target (₹464). 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 ₹86 (bear) to ₹238 (base) to ₹464 (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 SMS PHARMACEUTICALS 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.