VARDHMAN SPC STEEL LTD Valuation

VSSL · Industrial Products · Current price ₹298.35

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DocStoX fair value
₹173
low confidence
Current price
₹298
Upside
-42.0%
P/E ratio
26.2x
P/B ratio
2.0x
Verdict
Avoid
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Is VARDHMAN SPC STEEL LTD undervalued?

DocStoX estimates the fair value of VARDHMAN SPC STEEL LTD at ₹173 per share, versus the current market price of ₹298. That puts the stock about -42.0% 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 (₹131), Relative P/E (₹247), Graham floor (₹184). 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 ₹131 (bear) to ₹173 (base) to ₹247 (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

VARDHMAN SPC STEEL LTD trades at a P/E of 26.2x and a P/B of 2.0x, with a dividend yield of 1.1%. 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 VARDHMAN SPC STEEL 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.