ISGEC HEAVY ENG LTD Fair Value
ISGEC · Construction · Current price ₹902.5
Is ISGEC HEAVY ENG LTD undervalued?
We estimate the fair value of ISGEC HEAVY ENG LTD at ₹343 per share, against a market price of ₹796. That puts the share price about -56.9% 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: Discounted cash flow (2-stage) (₹343). 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 ISGEC HEAVY ENG LTD spans ₹309 to ₹377. 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 ISGEC HEAVY ENG LTD. 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 ENG LTD: 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 ENG LTD
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.