Balkrishna Industries Limited DCF Valuation
BALKRISIND · Automobile and Auto Components · Current price ₹2,057
Balkrishna Industries Limited cash-flow valuation
Our engine did not use a discounted-cash-flow model for Balkrishna Industries Limited. It routes each business to the methods that suit it, and a DCF is a poor lens where cash-flow forecasts are fragile or the business is capital-structure driven. The methods it did use, and why, are set out below. Our published estimate is ₹2,249.
Try your own assumptions
Prefer to build the discounted cash flow yourself? The DCF calculator below opens pre-filled with Balkrishna Industries Limited's reported free cash flow, net debt and share count, so you can set your own growth and discount rate.
How we got this fair value
Every number below is part of the same estimate for Balkrishna Industries 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 ₹2,024 – ₹2,474
Why this method for this business
Normalized earnings and relative PE are appropriate for a cyclical business like tyres, where mid-cycle earnings and sector multiples are key valuation drivers.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
Cyclical valued off mid-cycle earnings and a through-cycle EV/EBITDA (§6.6)
- ev_ebitda was excluded due to insufficient data quality for a cyclical business
What was missing
- Lack of forward EBITDA margin data
- Limited analyst coverage for precise multiple calibration
What drives it
22 inputs, grouped by how strong each claim is
- Revenue (TTM)
- 10,823 ₹ cr
- Net debt
- 4,050.1 ₹ cr
- Shares outstanding
- 19,33,54,430
- Sector-median P/E
- 28.6×
- Peers used
- 3
- EPS (TTM)
- 72.71 ₹/share
- Own-history median P/E
- 29.84×
computed
computed
computed
peer-median
peer-median
computed
reconstructed (one feature, dampened — not a cap)
- EBITDA margin (cycle median)
- 24%
- Through-cycle EV/EBITDA
- 18.7×
computed (≤5y median)
own-history (median of 5y)
- Term: quality
- +0.6%
- Term: growth
- -2.0%
- Term: capital_allocation
- -5.2%
- Term: financial_strength
- +5.4%
- Term: history
- +1.3%
- Term: sector_rerating
- +0.0%
- Term: rate_regime
- +1.2%
- Term: risk
- +0.0%
quality 58/100 (about average) → neutral (ROCE deteriorating → premium halved)
~7% CAGR (ROCE 17% > hurdle) → neutral
capital allocation: falling ROCE / weak cash generation → discount
financial strength: low leverage (D/E 0.4) → mild premium
history: market paid +4% vs sector, dampened ×0.3 (one feature, not the anchor)
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)
- Mid-cycle EBITDA
- 2,597.5 ₹ cr
- Enterprise value
- 48,565.1 ₹ cr
- Premium vs sector
- +1.0%
- Fair-multiple confidence
- 63%
- Fair P/E
- 28.9×
computed
computed
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 Balkrishna Industries 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 Balkrishna Industries Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.