Godrej Agrovet Limited Intrinsic Value
GODREJAGRO · Fast Moving Consumer Goods · Current price ₹634
Is Godrej Agrovet Limited undervalued?
We estimate the fair value of Godrej Agrovet Limited at ₹472 per share, against a market price of ₹676. That puts the share price about -30.2% above our estimate, at high 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 2 methods: Discounted cash flow (2-stage) (₹468), Fair multiple (P/E) (₹483). 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 Godrej Agrovet Limited spans ₹425 to ₹519. 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 ₹676 against an estimated value of ₹472, Godrej Agrovet Limited trades at -30.2%, 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 Godrej Agrovet Limited. Nothing here is a target price or a forecast of where the share price will go.
The models agree and the inputs are well covered. Treat this as our firmest estimate.
Estimate range ₹425 – ₹519
Why this method for this business
Godrej Agrovet is an asset-light compounder in the FMCG sector, where earnings power and a durable moat are key. A DCF model captures its intrinsic value, while a relative P/E model reflects its position relative to peers.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
Intrinsic value from 2-stage discounted cash flows (primary for asset-light / normal businesses); FCFE path
- peg: Not suitable for a mature, asset-light business with stable earnings growth
What was missing
- Lack of forward EPS estimates for precise DCF modeling
- Limited analyst coverage for peer comparison
- Insufficient historical data on sector re-rating
What drives it
27 inputs, grouped by how strong each claim is
- FCF_0 (normalized)
- 643 ₹cr
- Net debt
- 1,574 ₹cr
- Sector-median P/E
- 17.25×
- Peers used
- 6
- EPS (TTM)
- 23.22 ₹/share
- Own-history median P/E
- 26.03×
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)
- 12.9%
- Beta
- 0.8
COE (building-block)
bottom-up industry
- Stage-1 start growth
- 5.36%
- Fade shape
- linear
- Terminal growth (g)
- 5.36%
- Stage-1 years
- 9 y
pat_cagr_5y
lifecycle Mature
macro terminal × quality premium
lifecycle Mature horizon
- Lifecycle stage
- Mature
- Quality premium
- 1.073×
- Term: quality
- +1.0%
- Term: growth
- -0.8%
- Term: capital_allocation
- -2.0%
- Term: financial_strength
- +5.2%
- Term: history
- +15.3%
- Term: sector_rerating
- +0.0%
- Term: rate_regime
- +1.2%
- Term: risk
- +0.0%
forecast engine (L20)
moat Narrow + capital allocation
quality 57/100 (about average) → neutral
~8% CAGR (ROCE 17% > hurdle) → neutral
capital allocation: falling ROCE / weak cash generation → discount
financial strength: low leverage (D/E 0.3) → mild premium
history: market paid +51% 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
- 0.537
- Premium vs sector
- +20.5%
- Fair-multiple confidence
- 80%
- Fair P/E
- 20.78×
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 Godrej Agrovet 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 Godrej Agrovet Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.