True Colors Ltd Valuation

TRUECOLORS · Capital Goods · Current price ₹150

Full stock page
DocStoX fair value
₹337
low confidence
Current price
₹150
Upside
+124.7%
P/E ratio
11.5x
P/B ratio
2.3x
Verdict
Strong Buy
Model it yourself — Earnings Yield Calculator
Opens pre-filled with True Colors Ltd's latest numbers.

Is True Colors Ltd undervalued?

DocStoX estimates the fair value of True Colors Ltd at ₹337 per share, versus the current market price of ₹150. That puts the stock about +124.7% 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 (₹259), Relative P/E (₹604), Graham floor (₹138). 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 ₹138 (bear) to ₹337 (base) to ₹604 (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

True Colors Ltd trades at a P/E of 11.5x and a P/B of 2.3x, 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 True Colors 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.