MSP Steel & Power Intrinsic Value

MSPL • Industrial Products
Current Stock Price
₹35.76
Primary Intrinsic Value
₹17.27
Market Cap
₹2028 Cr
-24.6% Downside
Median Value
₹26.97
Value Range
₹17 - ₹38
Assessment
Trading Above Calculated Value
Safety Margin
-32.6%

MSPL Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
Book Value Method asset ₹17.27 ₹15.54 - ₹19.00 -51.7% Book Value/Share: ₹17.27, P/B: 1.0x
Revenue Multiple Method revenue ₹38.26 ₹34.43 - ₹42.09 +7.0% Revenue/Share: ₹47.83, P/S: 0.8x
Simple DCF (5Y) dcf ₹26.97 ₹21.58 - ₹32.36 -24.6% CF Growth: 1.5%, Discount: 15%
Method Types: Earnings Asset DCF Growth Dividend Conservative

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Valuation Comparison Chart

MSPL Intrinsic Value Analysis

What is the intrinsic value of MSPL?

Based on our comprehensive analysis using 3 different valuation methods, the estimated intrinsic value of MSP Steel & Power (MSPL) is ₹26.97 (median value). With the current market price of ₹35.76, this represents a -24.6% variance from our estimated fair value.

The valuation range spans from ₹17.27 to ₹38.26, indicating ₹17.27 - ₹38.26.

Is MSPL undervalued or overvalued?

Based on our multi-method analysis, MSP Steel & Power (MSPL) appears to be trading above calculated value by approximately 24.6%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 32.05 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Debt to Equity Ratio 1.57 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity -30.6% Industry Standard: 15%+ Below 10% Measures shareholder return efficiency
Operating Margin -12.0% Industry Standard: 20%+ Below 10% Indicates operational efficiency level
Asset Turnover Ratio 1.77x 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 ₹189 Cr ₹172 Cr Positive Free Cash Flow 8/10
March 2024 ₹170 Cr ₹145 Cr Positive Free Cash Flow 8/10
March 2023 ₹86 Cr ₹77 Cr Positive Free Cash Flow 8/10
March 2022 ₹110 Cr ₹79 Cr Positive Free Cash Flow 8/10
March 2021 ₹178 Cr ₹178 Cr Positive Free Cash Flow 8/10