TECH MAHINDRA LIMITED Valuation
TECHM · Information Technology · Current price ₹1,635.8
Is TECH MAHINDRA LIMITED undervalued?
DocStoX estimates the fair value of TECH MAHINDRA LIMITED at ₹792 per share, versus the current market price of ₹1,636. That puts the stock about -51.6% 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 4 independent methods: Residual income (₹366), Relative P/E (₹1,129), Graham floor (₹578), Analyst target (₹1,607). 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 ₹366 (bear) to ₹792 (base) to ₹1,607 (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
TECH MAHINDRA LIMITED trades at a P/E of 33.3x and a P/B of 4.7x, with a dividend yield of 3.2%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.
Understand the ratios
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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.