Dr. Agarwal's Health Care Limited Intrinsic Value
AGARWALEYE · Healthcare · Current price ₹468.9
Is Dr. Agarwal's Health Care Limited undervalued?
We estimate the fair value of Dr. Agarwal's Health Care Limited at ₹148 per share, against a market price of ₹508. That puts the share price about -70.9% above our estimate, at medium confidence. This is our view of what the business is worth, not a target price or a forecast of where the share price will go.
How this fair value is calculated
This estimate comes from 1 method: Fair multiple (P/E) (₹148). Each is weighted by how well its inputs held up for this company. The full working, including the assumptions and what data was missing, is set out below.
The range around this estimate
Our estimate for Dr. Agarwal's Health Care Limited spans ₹133 to ₹163. A margin of safety means buying meaningfully below the estimate: the wider the range, the more room the assumptions leave for error.
Margin of safety
Value investors look for a margin of safety: a discount to estimated value that absorbs being wrong. At ₹508 against an estimated value of ₹148, Dr. Agarwal's Health Care Limited trades at -70.9%, i.e. a premium to our estimate. How much margin to demand depends on how much you trust the inputs, which is what the confidence band below is for.
How we got this fair value
Every number below is part of the same estimate for Dr. Agarwal's Health Care Limited. Nothing here is a target price or a forecast of where the share price will go.
Workable, with real gaps. Weigh it alongside your own view rather than on its own.
Estimate range ₹133 – ₹163
Why this method for this business
The relative P/E model is appropriate for a healthcare services business with a durable moat and stable earnings power. The residual income model complements this by capturing the value of book value and excess returns.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
implied value is <0.2× the price (likely a data error)
- dcf: Not suitable for a non-cyclical, asset-light healthcare business with uncertain cash flow patterns
- normalized book value is not relevant for a high-growth, moat-driven franchise
What was missing
- Lack of detailed peer data for precise P/E normalization
- Limited forward EPS data for residual income model
- No detailed capital allocation data for DCF
What drives it
14 inputs, grouped by how strong each claim is
- Sector-median P/E
- 28.5×
- Peers used
- 6
- EPS (TTM)
- 4.69 ₹/share
peer-median
peer-median
computed
- Term: quality
- -9.2%
- Term: growth
- -0.0%
- Term: capital_allocation
- +12.9%
- Term: financial_strength
- +6.7%
- Term: history
- +0.0%
- Term: sector_rerating
- +0.0%
- Term: rate_regime
- +1.2%
- Term: risk
- +0.0%
quality 36/100 (weak/erratic returns) → discount
~8% CAGR (ROCE 11% < 12% hurdle (growth not value-accretive)) → neutral
capital allocation: rising ROCE funded by strong FCF → premium
financial strength: low leverage (D/E 0.3) → mild premium
history: no reliable own-history P/E → not used
sector re-rating: no sector-norm history → not used
rates: risk-free 6.9% below ~7.1% normal → higher multiple
risk: no analyst-dispersion signal available → neutral (lowers confidence, not PE)
- Premium vs sector
- +10.6%
- Fair-multiple confidence
- 50%
- Fair P/E
- 31.51×
fundamentals + macro (not capped at own history)
data completeness + term agreement
sector median × ∏(1+term) — Dynamic Fair Multiple
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for Dr. Agarwal's Health Care Limited: which models suit the business, the moat, the growth and margin assumptions. It does not produce the number. The fair value itself is computed in Python by a deterministic engine (version 2026.08.1) from those inputs, so the same inputs always give the same result and every figure above can be traced to a source.
Estimated 14 Sept 2026. Re-run as new financials and news arrive.
How we value stocks
We estimate what a business is worth from its own economics: cash flows, returns on capital, and a multiple justified by its quality, rather than from where the share price has been. A fair value estimate is a view, not a verdict, and it is only as good as the inputs listed above.
Read the full fair-value methodologyMore on Dr. Agarwal's Health Care Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.