HP Cotton Textile Mills Intrinsic Value

HPCOTTON • Textiles
Current Stock Price
₹108.60
Primary Intrinsic Value
₹95.52
Market Cap
₹43.4 Cr
-12.0% Downside
Median Value
₹95.52
Value Range
₹40 - ₹217
Assessment
Trading Above Median Value
Safety Margin
-13.7%

HPCOTTON Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹95.52 ₹76.42 - ₹114.62 -12.0% EPS: ₹7.96, Sector P/E: 12x
Book Value Method asset ₹40.00 ₹36.00 - ₹44.00 -63.2% Book Value/Share: ₹40.00, P/B: 1.0x
Revenue Multiple Method revenue ₹217.20 ₹195.48 - ₹238.92 +100.0% Revenue/Share: ₹350.00, P/S: 0.8x
EBITDA Multiple Method earnings ₹217.20 ₹195.48 - ₹238.92 +100.0% EBITDA: ₹16.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹162.47 ₹129.98 - ₹194.96 +49.6% CF Growth: 5.0%, Discount: 15%
PEG Ratio Method growth ₹50.94 ₹45.85 - ₹56.03 -53.1% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹65.59 ₹59.03 - ₹72.15 -39.6% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹160.00 ₹144.00 - ₹176.00 +47.3% ROE: 25.0%, P/E Multiple: 16x
Graham Defensive Method conservative ₹80.00 ₹72.00 - ₹88.00 -26.3% EPS: ₹7.96, BVPS: ₹40.00
Method Types: Earnings Asset DCF Growth Dividend Conservative

Want to compare with current market value? Check HPCOTTON share price latest .

Valuation Comparison Chart

HPCOTTON Intrinsic Value Analysis

What is the intrinsic value of HPCOTTON?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of HP Cotton Textile Mills (HPCOTTON) is ₹95.52 (median value). With the current market price of ₹108.60, this represents a -12.0% variance from our estimated fair value.

The valuation range spans from ₹40.00 to ₹217.20, indicating ₹40.00 - ₹217.20.

Is HPCOTTON undervalued or overvalued?

Based on our multi-method analysis, HP Cotton Textile Mills (HPCOTTON) appears to be trading above median value by approximately 12.0%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 3.25 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Debt to Equity Ratio 5.81 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 25.0% Industry Standard: 15%+ Above 15% Measures shareholder return efficiency
Operating Margin 8.0% Industry Standard: 20%+ Below 10% Indicates operational efficiency level
Asset Turnover Ratio 1.51x Industry Standard: 1.0x+ Above 1.0x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹7 Cr ₹6 Cr Positive Free Cash Flow 8/10
March 2024 ₹12 Cr ₹12 Cr Positive Free Cash Flow 8/10
March 2023 ₹0 Cr ₹0 Cr Negative Cash Flow 3/10
March 2022 ₹8 Cr ₹-1 Cr Positive Operating Cash Flow 6/10