Safa Systems & Technologies Ltd Valuation

SSTL · Services · Current price ₹19.7

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DocStoX fair value
₹21
low confidence
Current price
₹20
Upside
+4.2%
P/E ratio
12.9x
P/B ratio
1.2x
Verdict
Expensive
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Is Safa Systems & Technologies Ltd undervalued?

DocStoX estimates the fair value of Safa Systems & Technologies Ltd at ₹21 per share, versus the current market price of ₹20. That puts the stock about +4.2% 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 (₹15), Relative P/E (₹33), Graham floor (₹18). 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 ₹15 (bear) to ₹21 (base) to ₹33 (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

Safa Systems & Technologies Ltd trades at a P/E of 12.9x and a P/B of 1.2x, 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 Safa Systems & Technologies 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.