Sovereign Diamonds Ltd Fair Value
SOVERDIA · Consumer Goods · Current price ₹26.9
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹9 | -38% ROE fading to 12% over ~3 yrs, on ₹21 book |
| Relative P/E | ₹71 | EPS × 29.7 peer-median P/E |
| Graham floor | ₹34 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | — | No analyst coverage |
Is Sovereign Diamonds Ltd undervalued?
DocStoX estimates the fair value of Sovereign Diamonds Ltd at ₹30 per share, versus the current market price of ₹27. That puts the stock about +12.8% below our fair-value estimate, which we read as "Expensive". Our confidence in this estimate is low.
How this fair value is calculated
This estimate blends 3 independent methods: Residual income (₹9), Relative P/E (₹71), 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 ₹9 (bear) to ₹30 (base) to ₹71 (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 Sovereign Diamonds 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.