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Diamines and Chemicals Limited (500120) Fair Value & Analysis

Basic Materials · IN · Market cap ₹4.1B

DA Diamines and Chemicals Limited 500120 · BSE
Price₹236.90
Fair Value₹91.30
Upside-61.5%
Quality40/100

Structural break: The valuation model sees a lasting decline in earnings power for this stock, the confidence band is broken. Treat the target with caution.

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Weak Growth
Highly profitable · 35.4% net margin
Low debt
2.25% dividend yield
Mixed vs. peers (7/13)
Wide moat 100/100
Evidence: High Range ₹68.48 – ₹114.13 Share as image

Fair value as of: Aug 13, 2026

From 16 valuation models · updated 5 days ago

Fair value updated Aug 13, 2026, revised from ₹47.45 to ₹91.30 (+92.4%) since Aug 9, 2026.

Below-average quality, and screening another 61% overvalued on our models.

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What matters now

  • The price sits above even our optimistic bull case (₹114.13). The favourable scenario is already priced in.
  • Weak quality (40/100) and above fair value at the same time, the margin of safety is missing on both counts.
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Price vs Fair Value (5 years)

₹666.40 ₹211.35 Fair Value ₹91.30 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ₹211.35 – ₹666.40 · fair‑value band ₹68.48 – ₹114.13 · the ₹236.90 price screens above the ₹91.30 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Diamines and Chemicals Limited (500120) currently trades at ₹236.90, while our model-based Fair Value estimate is ₹91.30, implying the stock looks roughly 61.5% overvalued today. The Quality Score stands at 40/100 (below-average quality), in the Basic Materials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Diamines and Chemicals Limited generated revenue of ₹721M at a net margin of 35.4%. Revenue declined 1.3% year over year. It earns a return on equity of 38.8%. The stock trades on a trailing P/E of 13.4 (as of Jul 4, 2026). Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹68.48 (bear case) to ₹114.13 (bull case); at ₹236.90, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 46% below its 52-week high and 12% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -43% fair-value upside, at -61%, 500120 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Note: the current price implies far more future growth than the conservative anchors of our models allow (base growth is deliberately capped, we do not regard such extreme rates as sustainable). Our models are not designed for expectations this high; that is why the individual models scatter extremely (₹11.00 to ₹110.44). Read the values as a conservative anchor, not as a price target.
Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income ₹114.08 ₹108.82 ₹82.90 76
ROIC Compounder ₹9.56 ₹11.00 ₹12.25 72
Gordon GGM ₹21.96 ₹43.68 ₹66.26 70
All 16 models by family
DCF Models
Owner Earnings ₹23.89 ₹34.65 ₹49.77 31
Earnings-Based
Graham-Dodd ₹18.98 ₹50.43 ₹65.93 54
PEG = 1.0 ₹9.75 ₹13.93 ₹18.11 46
EPV ₹9.56 ₹11.00 ₹12.25 59
Dividend Discount
Gordon GGM ₹21.96 ₹43.68 ₹66.26 70
DDM Multi-Stage ₹21.96 ₹33.44 ₹45.20 61
Multiples
P/E Multiple ₹35.59 ₹47.45 ₹59.31 63
P/S Multiple ₹35.59 ₹47.45 ₹59.31 58
P/B Multiple ₹35.59 ₹47.45 ₹59.31 55
EV/EBIT ₹21.55 ₹28.59 ₹35.64 53
EV/EBITDA ₹42.29 ₹56.25 ₹70.21 54
EV/Revenue ₹18.73 ₹26.58 ₹34.43 43
Asset-Based
NCAV (Graham) ₹82.42 ₹110.44 ₹164.83 50
Economic Profit
Residual Income ₹114.08 ₹108.82 ₹82.90 76
ROIC Compounder ₹9.56 ₹11.00 ₹12.25 72
Growth Earnings
Growth-Adj P/E ₹28.49 ₹40.71 ₹52.92 68

Widest divergence: Asset-Based (₹110.44) versus Economic Profit (₹11.00). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) ₹721M
Revenue growth (YoY) -1.3%
Net margin 35.4%
Return on equity 38.8%
P/E ratio 13.4 as of Jul 4, 2026
Operating margin 55.6%
More key figures
EPS (TTM) ₹26.10
Dividend yield 2.3%
EPS growth (YoY) +7.3%

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 40/100

Of which business quality 33 · Market factors (momentum, volatility) 26

Profitability 25
Margins and returns on capital today
Quality Growth 0
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 63
Balance sheet, leverage, solvency risk
Investment 36
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 21
Price trend over the last 3–12 months (market factor)
52W Momentum 6
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Diamines and Chemicals Limited manufactures and sells organic chemical compounds in India. The company operates through two segments, Speciality Chemicals and Power Generation.

Full company description

Diamines and Chemicals Limited manufactures and sells organic chemical compounds in India. The company operates through two segments, Speciality Chemicals and Power Generation. Its products include piperazine anhydrous, piperazine, ethylenediamine, diethylenetriamine, amino ethyl piperazine, polyamines mix, monoethanolamine, triethylenediamine, bitumen emulsifiers, acid corrosion inhibitors, anti-stripping agents, ethylene diamine acid phosphate, rust inhibitors, triethylene tetramine, and tetraethylene pentamine. Its products are used in pharmaceuticals, agrochemical, lubricants, fuel additives, etc. Diamines and Chemicals Limited also exports its products. In addition, the company generates electric power using other non-conventional sources, including windmill. The company was incorporated in 1976 and is based in Vadodara, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Diamines and Chemicals Limited reported revenue of ₹715M in FY2025 versus ₹628M in FY2021, a compound +3.3%/yr. Reported net income was ₹27.3M in FY2025, compounding −39.9%/yr from FY2021.

Growth Quality 30/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
₹715M
Latest YoY
−31.3%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+2.6%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+0.6%
Avg. growth/yr (11Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.5%
Revenue +3.3%/yr
FY21 ₹628M
FY22 ₹661M
FY23 ₹1.1B
FY24 ₹1.0B
FY25 ₹715M
Net income −39.9%/yr
FY21 ₹210M
FY22 ₹167M
FY23 ₹419M
FY24 ₹155M
FY25 ₹27.3M

500120 screens 61% overvalued. Compare with BASF India Limited →

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Cite: Fair Value Calculator (2026). "Diamines and Chemicals Limited Fair Value". https://www.fairvalue-calculator.com/stock/500120

Peer Group

Basic Materials · 178 stocks

How this stock ranks against its sector: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median. (Industry “Chemicals - Major Diversified” was too small, so the broader sector is used.)

Quality Score 40 · Below median
Fair Value upside −62% · Bottom 25%
Return on equity (TTM) 39% · Top 25%
Return on assets 32% · Top 25%
Net margin (TTM) 35% · Top 25%
Operating margin (TTM) 56% · Top 25%
Revenue growth -1% · Below median
Dividend yield (TTM) 2.3% · Above median
Debt / equity 0.01× · Lower than median

Valuation Multiples vs Basic Materials median · lower = cheaper

P/E (TTM) 13.4× · Cheaper than median
P/B 2.53× · Pricier than median
P/S (TTM) 5.67× · Pricier than 75% of peers
EV/EBITDA 10.3× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE0 · sector 31
PAST100 · sector 38
HEALTH100 · sector 98
DIVIDEND45 · sector 40

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Chemicals - Major Diversified stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
BASF India Limited 500042 ₹3,990 ₹1,527 -62%
Rain Industries Limited 500339 ₹214.05 ₹21.49 -90%
NOCIL Limited 500730 ₹163.00 ₹93.31 -43%
GHCL Limited 500171 ₹428.60 ₹479.96 +12%
Bhansali Engineering Polymers Limited 500052 ₹120.65 ₹119.36 -1%
Uniphos Enterprises Limited 500429 ₹96.00 ₹164.02 +71%
Lords Chloro Alkali Limited 500284 ₹137.75 ₹41.77 -70%
Ishan Dyes & Chemicals Limited 531109 ₹50.00 ₹59.26 +19%
Universal Starch-Chem Allied Limited 524408 ₹199.60 ₹26.59 -87%
Laffans Petrochemicals Limited 524522 ₹28.50 ₹8.78 -69%

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Frequently asked questions

Is Diamines and Chemicals Limited (500120) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹91.30 versus a price of ₹236.90, about −61% (overvalued).
What is the fair value of 500120?
Our model-based fair value for Diamines and Chemicals Limited is ₹91.30 (as of Aug 13, 2026), built from audited fundamentals. The current price is ₹236.90.
What is the quality score of 500120?
Diamines and Chemicals Limited has a Quality Score of 40/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Diamines and Chemicals Limited (500120)?
Diamines and Chemicals Limited reported trailing-twelve-month revenue of about ₹721M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 500120?
The net profit margin of Diamines and Chemicals Limited is about 35.4%, meaning it keeps roughly 35.4% of revenue as net income. Based on the latest reported figures.
Does Diamines and Chemicals Limited pay a dividend?
Diamines and Chemicals Limited currently shows a dividend yield of about 2.25% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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