ZENITH DRUGS LIMITED Fair Value
ZENITHDRUG · Healthcare · Current price ₹51
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹50 | 15% ROE fading to 13% over ~10 yrs, on ₹44 book |
| Relative P/E | ₹127 | EPS × 30.3 peer-median P/E |
| Graham floor | ₹64 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | — | No analyst coverage |
Is ZENITH DRUGS LIMITED undervalued?
DocStoX estimates the fair value of ZENITH DRUGS LIMITED at ₹74 per share, versus the current market price of ₹51. That puts the stock about +44.8% below our fair-value estimate, which we read as "Buy". Our confidence in this estimate is low.
How this fair value is calculated
This estimate blends 3 independent methods: Residual income (₹50), Relative P/E (₹127), Graham floor (₹64). 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 ₹50 (bear) to ₹74 (base) to ₹127 (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 ZENITH DRUGS 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.