SRM CONTRACTORS LIMITED Fair Value
SRM · Construction · Current price ₹446.75
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹1,006 | 34% ROE fading to 13% over ~20 yrs, on ₹162 book |
| Relative P/E | ₹1,580 | EPS × 32.7 peer-median P/E |
| Graham floor | ₹420 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | — | No analyst coverage |
Is SRM CONTRACTORS LIMITED undervalued?
DocStoX estimates the fair value of SRM CONTRACTORS LIMITED at ₹1,076 per share, versus the current market price of ₹447. That puts the stock about +140.8% below our fair-value estimate, which we read as "Strong Buy". Our confidence in this estimate is low.
How this fair value is calculated
This estimate blends 3 independent methods: Residual income (₹1,006), Relative P/E (₹1,580), Graham floor (₹420). 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 ₹420 (bear) to ₹1,076 (base) to ₹1,580 (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 SRM CONTRACTORS 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.