TVS Supply Chain Solutions Limited Intrinsic Value
TVSSCS · Services · Current price ₹122.78
Is TVS Supply Chain Solutions Limited undervalued?
We estimate the fair value of TVS Supply Chain Solutions Limited at ₹37 per share, against a market price of ₹130. That puts the share price about -71.6% above 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 2 methods: Fair multiple (P/E) (₹40), Residual income (excess return on book) (₹34). 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 TVS Supply Chain Solutions Limited spans ₹34 to ₹41. 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 ₹130 against an estimated value of ₹37, TVS Supply Chain Solutions Limited trades at -71.6%, 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 TVS Supply Chain Solutions 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 ₹34 – ₹41
Why this method for this business
The business is asset-light and earns through earnings power, making normalized EPS and a durable moat-scaled multiple the best lens. Residual income complements this by capturing returns above the cost of equity.
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
- dcf: Not suitable for an asset-light business with erratic earnings; DCF is meaningless when debt is not the core asset
What was missing
- Lack of historical P/E data for accurate multiple normalization
- Limited analyst coverage for forward estimates
What drives it
19 inputs, grouped by how strong each claim is
- Sector-median P/E
- 20.97×
- Peers used
- 6
- EPS (TTM)
- 1.46 ₹/share
- ROE (normalized)
- -0.6%
- Book value / share
- 46.1 ₹
peer-median
peer-median
computed
computed
reported
- Cost of equity
- 10.6%
building-block
- Term: quality
- -8.4%
- Term: growth
- +17.2%
- Term: capital_allocation
- +11.2%
- Term: financial_strength
- +7.4%
- Term: history
- +0.0%
- Term: sector_rerating
- +0.0%
- Term: rate_regime
- +1.2%
- Term: risk
- +0.0%
- Moat
- None
- Excess-return horizon
- 3 yrs
quality 38/100 (weak/erratic returns) → discount
durable ~25% CAGR (ROCE 5% < 12% hurdle (growth not value-accretive)) → premium
capital allocation: rising ROCE funded by strong FCF → premium
financial strength: low leverage (D/E 0.1) → mild premium
history: no reliable own-history P/E → not used
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)
computed
computed
- Premium vs sector
- +29.8%
- Fair-multiple confidence
- 55%
- Fair P/E
- 27.22×
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 TVS Supply Chain Solutions 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 TVS Supply Chain Solutions Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.