DREDGING CORP OF INDIA Valuation
DREDGECORP · Services · Current price ₹891
Is DREDGING CORP OF INDIA undervalued?
We estimate the fair value of DREDGING CORP OF INDIA 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 CORP OF INDIA 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.
Valuation multiples
DREDGING CORP OF INDIA trades at a P/E of 524.1x and a P/B of 2.3x, with a dividend yield of 0.0%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.
How we got this fair value
Every number below is part of the same estimate for DREDGING CORP OF INDIA. 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 CORP OF INDIA: 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 methodologyUnderstand the ratios
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DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.