Nirlon Intrinsic Value

NIRLON • Commercial Services
Current Stock Price
₹501.25
Primary Intrinsic Value
₹438.00
Market Cap
₹4511 Cr
-30.2% Downside
Median Value
₹350.00
Value Range
₹100 - ₹724
Assessment
Trading Above Calculated Value
Safety Margin
-43.2%

NIRLON Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹438.00 ₹350.40 - ₹525.60 -12.6% EPS: ₹36.50, Sector P/E: 12x
Book Value Method asset ₹100.25 ₹90.23 - ₹110.28 -80.0% Book Value/Share: ₹39.67, P/B: 1.0x
Revenue Multiple Method revenue ₹150.38 ₹135.34 - ₹165.42 -70.0% Revenue/Share: ₹74.44, P/S: 0.8x
EBITDA Multiple Method earnings ₹350.00 ₹315.00 - ₹385.00 -30.2% EBITDA: ₹525.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹724.44 ₹579.55 - ₹869.33 +44.5% CF Growth: 15.0%, Discount: 15%
PEG Ratio Method growth ₹584.00 ₹525.60 - ₹642.40 +16.5% EPS Growth: 20.0%, Fair P/E: 16.0x
Growth Adjusted P/E growth ₹313.47 ₹282.12 - ₹344.82 -37.5% Revenue Growth: 14.7%, Adj P/E: 8.6x
ROE Based Valuation profitability ₹584.89 ₹526.40 - ₹643.38 +16.7% ROE: 92.2%, P/E Multiple: 16x
Graham Defensive Method conservative ₹150.38 ₹135.34 - ₹165.42 -70.0% EPS: ₹36.50, BVPS: ₹39.67
Method Types: Earnings Asset DCF Growth Dividend Conservative

Valuation Comparison Chart

NIRLON Intrinsic Value Analysis

What is the intrinsic value of NIRLON?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Nirlon (NIRLON) is ₹350.00 (median value). With the current market price of ₹501.25, this represents a -30.2% variance from our estimated fair value.

The valuation range spans from ₹100.25 to ₹724.44, indicating ₹100.25 - ₹724.44.

Is NIRLON undervalued or overvalued?

Based on our multi-method analysis, Nirlon (NIRLON) appears to be trading above calculated value by approximately 30.2%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 0.13 Industry Standard: 2.0+ Below 1.5 Measures short-term liquidity capacity
Return on Equity 92.2% Industry Standard: 15%+ Above 15% Measures shareholder return efficiency
Operating Margin 78.0% Industry Standard: 20%+ Above 20% Indicates operational efficiency level
Asset Turnover Ratio 0.30x 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 ₹480 Cr ₹461 Cr Positive Free Cash Flow 8/10
March 2024 ₹425 Cr ₹400 Cr Positive Free Cash Flow 8/10
March 2023 ₹377 Cr ₹332 Cr Positive Free Cash Flow 8/10
March 2022 ₹340 Cr ₹261 Cr Positive Free Cash Flow 8/10
March 2021 ₹209 Cr ₹149 Cr Positive Free Cash Flow 8/10