VMS Industries Ltd Valuation

VMS · Services · Current price ₹21.99

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DocStoX fair value
₹38
medium confidence
Current price
₹22
Upside
+72.0%
P/E ratio
7.9x
P/B ratio
0.5x
Verdict
Buy
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Is VMS Industries Ltd undervalued?

DocStoX estimates the fair value of VMS Industries Ltd at ₹38 per share, versus the current market price of ₹22. That puts the stock about +72.0% below our fair-value estimate, which we read as "Buy". Our confidence in this estimate is medium.

How this fair value is calculated

This estimate blends 2 independent methods: Residual income (₹35), Graham floor (₹48). 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 ₹32 (bear) to ₹38 (base) to ₹48 (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

VMS Industries Ltd trades at a P/E of 7.9x and a P/B of 0.5x, with a dividend yield of 2.3%. 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 VMS Industries 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.