Kirloskar Industries Limited Fair Value
KIRLOSIND · Capital Goods · Current price ₹3,461.8
Is Kirloskar Industries Limited undervalued?
We estimate the fair value of Kirloskar Industries Limited at ₹4,425 per share, against a market price of ₹3,828. That puts the share price about +15.6% below our estimate, at low 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: Normalized earnings (mid-cycle EV/EBITDA) (₹4,425). 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 Kirloskar Industries Limited spans ₹3,982 to ₹4,867. That range is wide, which is the honest signal here: read the range rather than the single number. 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 Kirloskar Industries Limited. Nothing here is a target price or a forecast of where the share price will go.
The inputs are thin or the models disagree sharply. This is our least reliable kind of estimate, so read the range rather than the single number.
Estimate range ₹3,982 – ₹4,867
Why this method for this business
Normalized earnings and EV/EBITDA are the most appropriate models for a capital goods company with cyclical earnings and a mixed asset base. These models capture the mid-cycle earnings power and the EV/EBITDA multiple, which are critical for valuing a business with significant fixed assets and cyclical performance.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
Cyclical valued off mid-cycle earnings and a through-cycle EV/EBITDA (§6.6)
required inputs missing
- Relative PE is not used due to lack of reliable sector comparables and the cyclical nature of the business
- DCF is not used due to the lack of forward estimates and the high sensitivity to macroeconomic cycles
What was missing
- Forward estimates are not available to support a DCF model
- Limited analyst coverage and peer data for relative PE model
What drives it
8 inputs, grouped by how strong each claim is
- Revenue (TTM)
- 6,958 ₹ cr
- Net debt
- 1,113 ₹ cr
- Shares outstanding
- 1,05,07,642
computed
computed
computed
- EBITDA margin (cycle median)
- 14%
- Through-cycle EV/EBITDA
- 5.92×
computed (≤5y median)
own-history (median of 5y)
- Mid-cycle EBITDA
- 974.1 ₹ cr
- Enterprise value
- 5,762.4 ₹ cr
- Net debt basis
- gross (cash unavailable)
computed
computed
note: net debt approximated by gross debt (cash unavailable)
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for Kirloskar Industries 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 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 methodologyMore on Kirloskar Industries Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.