Hindustan Organic Chemicals Intrinsic Value

HOCL • Chemicals
Current Stock Price
₹33.07
Primary Intrinsic Value
₹82.67
Market Cap
₹221.6 Cr
+150.0% Upside
Median Value
₹82.67
Value Range
₹63 - ₹83
Assessment
Trading Below Calculated Value
Safety Margin
60.0%

HOCL Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
Book Value Method asset ₹82.67 ₹74.40 - ₹90.94 +150.0% Book Value/Share: ₹150.75, P/B: 1.0x
Revenue Multiple Method revenue ₹62.57 ₹56.31 - ₹68.83 +89.2% Revenue/Share: ₹78.21, P/S: 0.8x
Simple DCF (5Y) dcf ₹82.67 ₹66.14 - ₹99.20 +150.0% CF Growth: 15.0%, Discount: 15%
Method Types: Earnings Asset DCF Growth Dividend Conservative

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Valuation Comparison Chart

HOCL Intrinsic Value Analysis

What is the intrinsic value of HOCL?

Based on our comprehensive analysis using 3 different valuation methods, the estimated intrinsic value of Hindustan Organic Chemicals (HOCL) is ₹82.67 (median value). With the current market price of ₹33.07, this represents a +150.0% variance from our estimated fair value.

The valuation range spans from ₹62.57 to ₹82.67, indicating ₹62.57 - ₹82.67.

Is HOCL undervalued or overvalued?

Based on our multi-method analysis, Hindustan Organic Chemicals (HOCL) appears to be trading below calculated value by approximately 150.0%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 7.06 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Debt to Equity Ratio 1.55 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity -7.1% Industry Standard: 15%+ Below 10% Measures shareholder return efficiency
Operating Margin -14.0% Industry Standard: 20%+ Below 10% Indicates operational efficiency level
Asset Turnover Ratio 0.34x Industry Standard: 1.0x+ Below 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹631 Cr ₹631 Cr Positive Free Cash Flow 8/10
March 2024 ₹-66 Cr ₹-66 Cr Negative Cash Flow 3/10
March 2023 ₹-13 Cr ₹-13 Cr Negative Cash Flow 3/10
March 2022 ₹10 Cr ₹10 Cr Positive Free Cash Flow 8/10
March 2021 ₹-50 Cr ₹-50 Cr Negative Cash Flow 3/10