Shipping Corporation Of India Limited Intrinsic Value
SCI · Services · Current price ₹286.05
Is Shipping Corporation Of India Limited undervalued?
We estimate the fair value of Shipping Corporation Of India Limited at ₹237 per share, against a market price of ₹281. That puts the share price about -15.5% 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 2 methods: Residual income (excess return on book) (₹195), Discounted cash flow (2-stage) (₹303). 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 Shipping Corporation Of India Limited spans ₹195 to ₹303. 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 ₹281 against an estimated value of ₹237, Shipping Corporation Of India Limited trades at -15.5%, 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 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.