Sonal Adhesives Ltd Valuation

SONALAD · Chemicals · Current price ₹40.81

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DocStoX fair value
₹36
low confidence
Current price
₹41
Upside
-12.9%
P/E ratio
14.1x
P/B ratio
2.3x
Verdict
Fairly Valued
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Is Sonal Adhesives Ltd undervalued?

DocStoX estimates the fair value of Sonal Adhesives Ltd at ₹36 per share, versus the current market price of ₹41. That puts the stock about -12.9% above our fair-value estimate, which we read as "Fairly Valued". Our confidence in this estimate is low.

How this fair value is calculated

This estimate blends 3 independent methods: Residual income (₹20), Relative P/E (₹68), Graham floor (₹34). 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 ₹20 (bear) to ₹36 (base) to ₹68 (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

Sonal Adhesives Ltd trades at a P/E of 14.1x and a P/B of 2.3x, 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 Sonal Adhesives 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.