Vruddhi Engineering Works Ltd Fair Value

VRUDDHI · Capital Goods · Current price ₹195.95

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DocStoX fair value
₹68
low confidence
Current price
₹196
Upside to fair value
-65.5%
Verdict
Avoid
Quality score
6.3 / 10
Valuation methods
MethodFair valueStatus
Residual income₹5718% ROE fading to 13% over ~10 yrs, on ₹46 book
Relative P/E₹100EPS × 43.9 peer-median P/E
Graham floor₹48Conservative floor: √(22.5 × EPS × book value/share)
Analyst targetNo analyst coverage
Model it yourself — Margin of Safety Calculator
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Is Vruddhi Engineering Works Ltd undervalued?

DocStoX estimates the fair value of Vruddhi Engineering Works Ltd at ₹68 per share, versus the current market price of ₹196. That puts the stock about -65.5% 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 (₹57), Relative P/E (₹100), 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 ₹48 (bear) to ₹68 (base) to ₹100 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.

More on Vruddhi Engineering Works 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.