THE NEW INDIA ASSU CO LTD Intrinsic Value
NIACL · Financial Services · Current price ₹179.5
Is THE NEW INDIA ASSU CO LTD undervalued?
We estimate the fair value of THE NEW INDIA ASSU CO LTD at ₹125 per share, against a market price of ₹198. That puts the share price about -37.0% 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: Residual income (excess return on book) (₹125). 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 THE NEW INDIA ASSU CO LTD spans ₹112 to ₹138. 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 ₹198 against an estimated value of ₹125, THE NEW INDIA ASSU CO LTD trades at -37.0%, 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 THE NEW INDIA ASSU CO 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 ₹112 – ₹138
Why this method for this business
The justified P/B model is appropriate for a general insurance company with a stable book value and a clear cost of equity. The residual income model complements this by capturing the excess returns on book value, which is relevant for a state-owned entity with a long-term focus.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
Book value plus the present value of returns earned above the 10.6% cost of equity
implied value is <0.2× the price (likely a data error)
- relative_pb is rejected due to its high P/E multiple and lack of alignment with the industry's typical valuation range.
What was missing
- Lack of detailed forward EBITDA estimates
- Limited data on long-term growth assumptions
- Insufficient information on the company's capital structure and leverage
What drives it
5 inputs, grouped by how strong each claim is
- ROE (normalized)
- 4.1%
- Book value / share
- 149.4 ₹
computed
reported
- Cost of equity
- 10.6%
building-block
- Moat
- None
- Excess-return horizon
- 3 yrs
computed
computed
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for THE NEW INDIA ASSU CO 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 THE NEW INDIA ASSU CO LTD
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.