SONAM LIMITED Valuation

SONAMLTD · Consumer Goods · Current price ₹56.13

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DocStoX fair value
₹39
low confidence
Current price
₹56
Upside
-30.5%
P/E ratio
35.5x
P/B ratio
3.6x
Verdict
Avoid
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Is SONAM LIMITED undervalued?

DocStoX estimates the fair value of SONAM LIMITED at ₹39 per share, versus the current market price of ₹56. That puts the stock about -30.5% 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 3 independent methods: Residual income (₹14), Relative P/E (₹98), Graham floor (₹23). 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 ₹14 (bear) to ₹39 (base) to ₹98 (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

SONAM LIMITED trades at a P/E of 35.5x and a P/B of 3.6x, 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 SONAM 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.