Emcure Pharmaceuticals Limited Fair Value
EMCURE · Healthcare · Current price ₹1,833.5
Is Emcure Pharmaceuticals Limited undervalued?
We estimate the fair value of Emcure Pharmaceuticals Limited at ₹2,831 per share, against a market price of ₹1,979. That puts the share price about +43.1% below 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) (₹2,831). 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 Emcure Pharmaceuticals Limited spans ₹2,548 to ₹3,114. A margin of safety means buying meaningfully below the estimate: the wider the range, the more room the assumptions leave for error.
How we got this fair value
Every number below is part of the same estimate for Emcure Pharmaceuticals 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 ₹2,548 – ₹3,114
Why this method for this business
Pharmaceutical companies with a wide moat and stable cash flows are best valued using relative P/E and EV/EBITDA, which reflect both earnings power and capital efficiency.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
required inputs missing
- dcf: Not suitable for a pharmaceutical company with high R&D and intangible assets; the deterministic baseline's DCF is likely flawed due to its low value relative to the current price.
What was missing
- Lack of historical P/E data for the company to refine the fair multiple
- Limited analyst coverage for precise forward EPS estimates
What drives it
14 inputs, grouped by how strong each claim is
- Sector-median P/E
- 34.81×
- Peers used
- 34
- EPS (TTM)
- 53.34 ₹/share
peer-median
peer-median
computed
- Term: quality
- +5.1%
- Term: growth
- +28.8%
- Term: capital_allocation
- +3.9%
- Term: financial_strength
- +7.2%
- Term: history
- +0.0%
- Term: sector_rerating
- +0.0%
- Term: rate_regime
- +1.2%
- Term: risk
- +0.0%
quality 65/100 (high, stable returns) → premium
durable ~15% CAGR (ROCE 21% > hurdle) → premium
capital allocation: rising ROCE funded by strong FCF → premium
financial strength: low leverage (D/E 0.4) → 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
- +52.5%
- Fair-multiple confidence
- 64%
- Fair P/E
- 53.08×
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 Emcure Pharmaceuticals 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 Emcure Pharmaceuticals Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.