Shipping Corporation Of India Limited DCF Valuation
SCI · Services · Current price ₹286.05
Shipping Corporation Of India Limited cash-flow valuation
Our residual income (excess return on book) values Shipping Corporation Of India Limited at ₹195 per share. Book value plus the present value of returns earned above the 10.6% cost of equity. It carries 60% of the weight in our published estimate of ₹237. A discounted cash flow is only as good as the cash-flow path it assumes, so the assumptions behind it are listed in full below.
Try your own assumptions
Prefer to build the discounted cash flow yourself? The DCF calculator below opens pre-filled with Shipping Corporation Of India Limited's reported free cash flow, net debt and share count, so you can set your own growth and discount rate.
How we got this fair value
Every number below is part of the same estimate for Shipping Corporation Of 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 ₹195 – ₹303
Why this method for this business
Residual income and DCF are the most appropriate models for a shipping company with a capital-intensive business model and a focus on book value and earnings power.
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
Intrinsic value from 2-stage discounted cash flows (primary for asset-light / normal businesses); FCFE path
- relative_pe: Not applicable for a capital-intensive business with low earnings visibility
- other models not allowed
What was missing
- Forward-looking estimates
- Detailed analysis of fleet utilization
- Impact of regulatory changes on operations
What drives it
17 inputs, grouped by how strong each claim is
- ROE (normalized)
- 10.6%
- Book value / share
- 195 ₹
- FCF_0 (normalized)
- 950 ₹cr
- Net debt
- 2,679 ₹cr
computed
reported
fcf_norm (median ≤5y positive)
gross debt (cash n/a)
- Cost of equity
- 10.6%
- Discount rate (r)
- 14.4%
- Beta
- 1
building-block
COE (building-block)
bottom-up industry
- Stage-1 start growth
- 14%
- Fade shape
- linear
- Terminal growth (g)
- 5%
- Stage-1 years
- 8 y
pat_cagr_5y
lifecycle Mature
macro terminal × quality premium
lifecycle Mature horizon
- Moat
- None
- Excess-return horizon
- 3 yrs
- Lifecycle stage
- Mature
- Quality premium
- 1×
computed
computed
forecast engine (L20)
moat None + capital allocation
- Path
- FCFE
- Terminal-value fraction
- 0.528
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 Shipping Corporation Of 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 Shipping Corporation Of India Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.