Deep Industries Limited DCF Valuation
DEEPINDS · Oil, Gas & Consumable Fuels · Current price ₹747.95
Deep Industries Limited cash-flow valuation
Our discounted cash flow (2-stage) values Deep Industries Limited at ₹255 per share. Intrinsic value from 2-stage discounted cash flows (primary for asset-light / normal businesses); FCFE path. It carries 60% of the weight in our published estimate of ₹384. A discounted cash flow is only as good as the cash-flow path it assumes, so the assumptions behind it are listed in full below.
Try your own assumptions
Prefer to build the discounted cash flow yourself? The DCF calculator below opens pre-filled with Deep 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 Deep Industries Limited. Nothing here is a target price or a forecast of where the share price will go.
The inputs are thin or the models disagree sharply. This is our least reliable kind of estimate, so read the range rather than the single number.
Estimate range ₹255 – ₹422
Why this method for this business
The DCF model is appropriate for valuing a capital-intensive business like Deep Industries Ltd, which has significant debt and requires cash flow analysis. EV/EBITDA is useful for comparing with peers in the energy sector, and relative PE is relevant for assessing market sentiment and sector multiples.
The models behind the number
These methods disagree materially, so the estimate is their plain midpoint rather than a weighted blend. The disagreement is itself the finding.
Intrinsic value from 2-stage discounted cash flows (primary for asset-light / normal businesses); FCFE path
required inputs missing
- Discounted cash flow (2-stage) was already used as the primary model, but we refine it with more precise assumptions. Other models like P/B or residual income are not suitable for an oil and gas company with high debt and volatile cash flows.
What was missing
- Lack of detailed project-specific cash flow data
- Limited analyst coverage for precise forward estimates
What drives it
27 inputs, grouped by how strong each claim is
- FCF_0 (normalized)
- 73 ₹cr
- Net debt
- 203 ₹cr
- Sector-median P/E
- 13.7×
- Peers used
- 3
- EPS (TTM)
- 32.26 ₹/share
- Own-history median P/E
- 12.57×
fcf_norm (median ≤5y positive)
gross debt (cash n/a)
peer-median
peer-median
computed
reconstructed (one feature, dampened — not a cap)
- Discount rate (r)
- 14.4%
- Beta
- 1
COE (building-block)
bottom-up industry
- Stage-1 start growth
- 24.83%
- Fade shape
- hard
- Terminal growth (g)
- 5.36%
- Stage-1 years
- 12 y
pat_cagr_5y
lifecycle Hyper-Growth
macro terminal × quality premium
lifecycle Hyper-Growth horizon
- Lifecycle stage
- Hyper-Growth
- Quality premium
- 1.072×
- Term: quality
- -4.4%
- Term: growth
- +22.2%
- Term: capital_allocation
- -6.3%
- Term: financial_strength
- +7.6%
- Term: history
- -2.5%
- Term: sector_rerating
- +0.0%
- Term: rate_regime
- +1.2%
- Term: risk
- +0.0%
forecast engine (L20)
moat Narrow + capital allocation
quality 46/100 (weak/erratic returns) → discount
durable ~30% CAGR (ROCE 11% < 12% hurdle (growth not value-accretive)) → premium
capital allocation: falling ROCE / weak cash generation → discount
financial strength: low leverage (D/E 0.1) → mild premium
history: market paid -8% 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)
- Path
- FCFE
- Terminal-value fraction
- 0.427
- Premium vs sector
- +16.2%
- Fair-multiple confidence
- 68%
- Fair P/E
- 15.92×
computed (D/E vs 0.8)
PV_TV / (PV_1+PV_TV)
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 Deep 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 15 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 Deep Industries Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.