TECH MAHINDRA LIMITED Valuation

TECHM · Information Technology · Current price ₹1,572.9

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DocStoX fair value
₹613
low confidence
Current price
₹1,573
Upside
-61.0%
P/E ratio
32.0x
P/B ratio
4.7x
Verdict
Avoid
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Is TECH MAHINDRA LIMITED undervalued?

DocStoX estimates the fair value of TECH MAHINDRA LIMITED at ₹613 per share, versus the current market price of ₹1,573. That puts the stock about -61.0% 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 (₹365), Relative P/E (₹1,129), Graham floor (₹578). 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 ₹365 (bear) to ₹613 (base) to ₹1,129 (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 32.0x and a P/B of 4.7x, with a dividend yield of 3.6%. 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 TECH MAHINDRA 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.