Dredging Corporation of India Limited Intrinsic Value
DREDGECORP · Services · Current price ₹891
Is Dredging Corporation of India Limited undervalued?
We estimate the fair value of Dredging Corporation of India Limited at ₹312 per share, against a market price of ₹1,040. That puts the share price about -70.0% 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: Residual income (excess return on book) (₹312). 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 Dredging Corporation of India Limited spans ₹281 to ₹343. 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 ₹1,040 against an estimated value of ₹312, Dredging Corporation of India Limited trades at -70.0%, 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 Dredging Corporation of India 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 ₹281 – ₹343
Why this method for this business
Residual income is the only viable model for a capital-intensive, cyclical dredging business with erratic earnings and no durable moat.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
Book value plus the present value of returns earned above the 10.6% cost of equity
- dcf: DCF is unsuitable for a capital-intensive business with volatile cash flows and no clear growth trajectory
- relative_pe: P/E multiples are not applicable for a cyclical, earnings-unstable business
What was missing
- Forward estimates
- Detailed capital expenditure plans
- Long-term project pipeline visibility
What drives it
5 inputs, grouped by how strong each claim is
- ROE (normalized)
- 0.3%
- Book value / share
- 418.2 ₹
computed
reported
- Cost of equity
- 10.6%
building-block
- Moat
- None
- Excess-return horizon
- 3 yrs
computed
computed
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for Dredging Corporation of India 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 Dredging Corporation of India Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.