KRN Heat Exchanger and Refrigeration Limited Fair Value
KRN · Capital Goods · Current price ₹1,158
Is KRN Heat Exchanger and Refrigeration Limited undervalued?
We estimate the fair value of KRN Heat Exchanger and Refrigeration Limited at ₹638 per share, against a market price of ₹1,594. That puts the share price about -60.0% 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: Fair multiple (P/E) (₹638). 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 KRN Heat Exchanger and Refrigeration Limited spans ₹575 to ₹702. 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 KRN Heat Exchanger and Refrigeration 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 ₹575 – ₹702
Why this method for this business
KRN operates in the capital goods sector, which is capital-intensive and requires a DCF analysis to account for its asset base. EV/EBITDA is also relevant for its capital-heavy nature, while a relative P/E is useful for comparing with peers in the industrials sector.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
implied value is <0.2× the price (likely a data error)
required inputs missing
- Fair multiple (P/E) was not used as the deterministic baseline already applied it, but we refine it with more precise normalization and assumptions.
What was missing
- Lack of historical P/E data for precise normalization
- Limited analyst coverage for EV/EBITDA comparison
What drives it
14 inputs, grouped by how strong each claim is
- Sector-median P/E
- 30.72×
- Peers used
- 6
- EPS (TTM)
- 15.34 ₹/share
peer-median
peer-median
computed
- Term: quality
- +1.7%
- Term: growth
- +40.0%
- Term: capital_allocation
- -10.5%
- Term: financial_strength
- +5.1%
- Term: history
- +0.0%
- Term: sector_rerating
- +0.0%
- Term: rate_regime
- +1.2%
- Term: risk
- +0.0%
quality 62/100 (high, stable returns) → premium (ROCE deteriorating → premium halved)
durable ~42% CAGR (ROCE 42% > hurdle) → premium
capital allocation: falling ROCE / weak cash generation → discount
financial strength: low leverage (D/E 0.2) → 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
- +35.5%
- Fair-multiple confidence
- 51%
- Fair P/E
- 41.62×
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 KRN Heat Exchanger and Refrigeration 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 KRN Heat Exchanger and Refrigeration Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.