Isgec Heavy Engineering Limited DCF Valuation
ISGEC · Construction · Current price ₹902.5
Isgec Heavy Engineering Limited cash-flow valuation
Our discounted cash flow (2-stage) values Isgec Heavy Engineering Limited at ₹343 per share. Intrinsic value from 2-stage discounted cash flows (primary for asset-light / normal businesses); FCFE path. It carries 70% of the weight in our published estimate of ₹343. 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
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How we got this fair value
Every number below is part of the same estimate for Isgec Heavy Engineering 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 ₹309 – ₹377
Why this method for this business
DCF and EV/EBITDA are appropriate for a capital-intensive construction company with stable cash flows and a tangible asset base. DCF captures intrinsic value, while EV/EBITDA provides a market-based valuation.
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
required inputs missing
- relative_pe: Not used due to lack of reliable peer comparisons in the construction sector
- book_value: Not used as it is not relevant for a capital-intensive business with significant debt
What was missing
- Forward-looking analyst estimates
- Detailed project pipeline data
- Detailed capital expenditure plans
What drives it
12 inputs, grouped by how strong each claim is
- FCF_0 (normalized)
- 226 ₹cr
- Net debt
- 951 ₹cr
fcf_norm (median ≤5y positive)
gross debt (cash n/a)
- Discount rate (r)
- 14.4%
- Beta
- 1
COE (building-block)
bottom-up industry
- Stage-1 start growth
- 5%
- Fade shape
- linear
- Terminal growth (g)
- 5%
- Stage-1 years
- 8 y
pat_cagr_5y
lifecycle Mature
macro terminal × quality premium
lifecycle Mature horizon
- Lifecycle stage
- Mature
- Quality premium
- 1×
forecast engine (L20)
moat None + capital allocation
- Path
- FCFE
- Terminal-value fraction
- 0.504
computed (D/E vs 0.8)
PV_TV / (PV_1+PV_TV)
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for Isgec Heavy Engineering 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 Isgec Heavy Engineering Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.