Poonawalla Fincorp Limited Fair Value
POONAWALLA · Financial Services · Current price ₹447.5
Is Poonawalla Fincorp Limited undervalued?
We estimate the fair value of Poonawalla Fincorp Limited at ₹122 per share, against a market price of ₹445. That puts the share price about -72.6% above 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: Residual income (excess return on book) (₹122). 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 Poonawalla Fincorp Limited spans ₹110 to ₹134. 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 Poonawalla Fincorp 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 ₹110 – ₹134
Why this method for this business
Poonawalla Fincorp is an NBFC with a focus on consumer and MSME financing, making justified P/B and residual income models the most appropriate for assessing its value based on sustainable ROE and cost of equity.
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 was excluded due to low data quality and lack of peer comparables with similar risk profiles
- DCF was excluded as it is not suitable for NBFCs where debt is a core part of the business model
What was missing
- Lack of detailed peer comparisons for P/B normalization
- Limited forward EPS data for residual income model
What drives it
5 inputs, grouped by how strong each claim is
- ROE (normalized)
- 9.1%
- Book value / share
- 127 ₹
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 Poonawalla Fincorp 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 Poonawalla Fincorp Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.