RHI MAGNESITA INDIA LIMITED Intrinsic Value
RHIM · Capital Goods · Current price ₹369.2
Is RHI MAGNESITA INDIA LIMITED undervalued?
We estimate the fair value of RHI MAGNESITA INDIA LIMITED at ₹91 per share, against a market price of ₹376. That puts the share price about -75.8% 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) (₹91). 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 RHI MAGNESITA INDIA LIMITED spans ₹82 to ₹100. 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 ₹376 against an estimated value of ₹91, RHI MAGNESITA INDIA LIMITED trades at -75.8%, 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 RHI MAGNESITA INDIA 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 ₹82 – ₹100
Why this method for this business
The business is capital-intensive and cyclical, so DCF with a capital structure adjustment and EV/EBITDA are the most appropriate models. These models capture the value of the firm's assets and earnings power, which are critical for a refractory manufacturer.
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: insufficient data on comparable multiples
- dcf was primary but EV/EBITDA adds a cross-check for capital-heavy businesses
What was missing
- Lack of forward EBITDA estimates
- Limited analyst coverage
- Insufficient data on capital structure changes
What drives it
12 inputs, grouped by how strong each claim is
- FCF_0 (normalized)
- 173 ₹cr
- Net debt
- 448 ₹cr
fcf_norm (median ≤5y positive)
gross debt (cash n/a)
- Discount rate (r)
- 15.53%
- Beta
- 1.15
COE (building-block)
bottom-up industry
- Stage-1 start growth
- 8%
- Fade shape
- linear
- Terminal growth (g)
- 4.89%
- Stage-1 years
- 8 y
lifecycle-floor
lifecycle Turnaround
macro terminal × quality premium
lifecycle Turnaround horizon
- Lifecycle stage
- Turnaround
- Quality premium
- 0.977×
forecast engine (L20)
moat None + capital allocation
- Path
- FCFE
- Terminal-value fraction
- 0.471
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 RHI MAGNESITA INDIA 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 RHI MAGNESITA INDIA LIMITED
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.