Tatva Chintan Pharma Chem Limited DCF Valuation
TATVA · Chemicals · Current price ₹1,932.3
Tatva Chintan Pharma Chem Limited cash-flow valuation
Our engine did not use a discounted-cash-flow model for Tatva Chintan Pharma Chem Limited. It routes each business to the methods that suit it, and a DCF is a poor lens where cash-flow forecasts are fragile or the business is capital-structure driven. The methods it did use, and why, are set out below. Our published estimate is ₹551.
Try your own assumptions
Prefer to build the discounted cash flow yourself? The DCF calculator below opens pre-filled with Tatva Chintan Pharma Chem 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 Tatva Chintan Pharma Chem 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 ₹496 – ₹606
Why this method for this business
Normalized earnings and EV/EBITDA are appropriate for a commodity chemical player with cyclical earnings and moderate moat. Relative PE is used to capture sector-specific pricing dynamics.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
implied value is <0.2× the price (likely a data error)
required inputs missing
- DCF is not suitable for a commodity chemical business with volatile cash flows and low barriers to entry
- Book value is not relevant for an asset-light, cyclical business
What was missing
- Lack of forward-looking EBITDA margin data
- Limited analyst coverage for precise multiple calibration
What drives it
15 inputs, grouped by how strong each claim is
- Sector-median P/E
- 28.96×
- Peers used
- 9
- EPS (TTM)
- 21.97 ₹/share
- Own-history median P/E
- 69.76×
peer-median
peer-median
computed
reconstructed (one feature, dampened — not a cap)
- Term: quality
- -10.0%
- Term: growth
- -11.5%
- Term: capital_allocation
- -15.0%
- Term: financial_strength
- +1.1%
- Term: history
- +25.0%
- Term: sector_rerating
- +0.0%
- Term: rate_regime
- +1.2%
- Term: risk
- +0.0%
quality 35/100 (weak/erratic returns) → discount
weak ~3% CAGR (ROCE 16% > hurdle) → discount
capital allocation: falling ROCE / weak cash generation → discount
financial strength: moderate leverage (D/E 0.2) → neutral
history: market paid +141% vs sector, dampened ×0.3 (one feature, not the anchor)
sector re-rating: no sector-norm history → not used
rates: risk-free 6.9% below ~7.1% normal → higher multiple
risk: no analyst-dispersion signal available → neutral (lowers confidence, not PE)
- Premium vs sector
- -13.4%
- Fair-multiple confidence
- 72%
- Fair P/E
- 25.09×
fundamentals + macro (not capped at own history)
data completeness + term agreement
sector median × ∏(1+term) — Dynamic Fair Multiple
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for Tatva Chintan Pharma Chem 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 Tatva Chintan Pharma Chem Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.