Sangam (India) Limited Intrinsic Value
SANGAMIND · Textiles · Current price ₹602
Is Sangam (India) Limited undervalued?
We estimate the fair value of Sangam (India) Limited at ₹643 per share, against a market price of ₹574. That puts the share price about +11.9% 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) (₹643). 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 Sangam (India) Limited spans ₹578 to ₹707. 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.
Margin of safety
Value investors look for a margin of safety: a discount to estimated value that absorbs being wrong. At ₹574 against an estimated value of ₹643, Sangam (India) Limited trades at +11.9%, i.e. a discount 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 Sangam (India) 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 ₹578 – ₹707
Why this method for this business
Normalized earnings and EV/EBITDA are the most appropriate models for a cyclical textile business with volatile earnings and capital intensity.
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: Not applicable for a cyclical business
- discounted_cash_flow: Not suitable for a capital-intensive business with uncertain cash flows
What was missing
- Forward-looking analyst estimates
- Detailed capital expenditure breakdown
- Peer comparison data for EV/EBITDA
What drives it
8 inputs, grouped by how strong each claim is
- Revenue (TTM)
- 3,190 ₹ cr
- Net debt
- 1,222 ₹ cr
- Shares outstanding
- 4,52,15,563
computed
computed
computed
- EBITDA margin (cycle median)
- 10%
- Through-cycle EV/EBITDA
- 12.94×
computed (≤5y median)
own-history (median of 5y)
- Mid-cycle EBITDA
- 319 ₹ cr
- Enterprise value
- 4,127.5 ₹ 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 Sangam (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 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 Sangam (India) Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.