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506285 Fair Value & Analysis

Basic Materials · IN · Market cap ₹260B

5 506285 506285 · BSE
Price₹4,048
Fair Value₹1,589
Upside-60.8%
Quality78/100
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Healthy Growth
Thin margins · 0.0% net margin
generates free cash flow
Wide moat 69/100
Evidence: High Range ₹1,247 – ₹2,177 Share as image

Fair value as of: Aug 15, 2026

From 24 valuation models · updated today

Share price −0.2% over the past month.

A strong business, but screening 61% overvalued on our models.

What matters now

  • A high-quality business (quality 78/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case (₹2,177). The favourable scenario is already priced in.
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Price vs Fair Value (5 years)

₹6,551 ₹3,635 Fair Value ₹1,589 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 15, 2026.

How to read this chart

60‑month range ₹3,635 – ₹6,551 · fair‑value band ₹1,247 – ₹2,177 · the ₹4,048 price screens above the ₹1,589 fair value. Dashed = 300-day average. As of Aug 15, 2026.

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Analysis

506285 (506285) currently trades at ₹4,048, while our model-based Fair Value estimate is ₹1,589, implying the stock looks roughly 60.8% overvalued today. The Quality Score stands at 78/100 (high 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).

The stock trades on a trailing P/E of 45.6 (as of Aug 15, 2026). Fundamentals as of Aug 15, 2026

Our scenario range runs from ₹1,247 (bear case) to ₹2,177 (bull case); at ₹4,048, 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 26% below its 52-week high and 2% above its 52-week low. For context, the median of 10 Basic Materials peers we cover trades at -55% fair-value upside, at -61%, 506285 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.

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 ₹736.11 ₹986.40 ₹5,094 76
Growth DCF ₹2,164 ₹3,193 ₹4,751 72
Growth-Adj P/E ₹1,172 ₹1,674 ₹2,177 68
All 24 models by family
DCF Models
FCF DCF ₹2,126 ₹3,285 ₹5,155 38
Owner Earnings ₹1,571 ₹2,393 ₹3,718 31
5Y Revenue Exit ₹1,430 ₹2,014 ₹2,743 39
5Y EBITDA Exit ₹1,467 ₹2,084 ₹2,789 41
5Y P/E Exit ₹1,671 ₹2,469 ₹3,300 38
10Y Revenue Exit ₹1,626 ₹2,227 ₹3,009 36
10Y EBITDA Exit ₹1,679 ₹2,277 ₹3,045 37
10Y P/E Exit ₹1,813 ₹2,551 ₹3,446 35
Earnings-Based
Graham-Dodd ₹730.59 ₹2,332 ₹3,109 54
Lynch FV ₹515.17 ₹735.96 ₹956.75 50
PEG = 1.0 ₹515.17 ₹735.96 ₹956.75 46
EPV ₹1,186 ₹1,356 ₹1,508 59
Multiples
P/E Multiple ₹1,370 ₹1,826 ₹2,283 63
P/S Multiple ₹964.22 ₹1,286 ₹1,607 58
P/B Multiple ₹1,040 ₹1,387 ₹1,734 55
EV/EBIT ₹1,504 ₹1,931 ₹2,359 53
EV/EBITDA ₹1,247 ₹1,589 ₹1,931 54
EV/Revenue ₹1,120 ₹1,506 ₹1,892 43
Asset-Based
NCAV (Graham) ₹231.16 ₹309.76 ₹462.32 50
Growth DCF
Growth DCF ₹2,164 ₹3,193 ₹4,751 72
Rev-Margin DCF ₹1,430 ₹2,031 ₹2,734 67
Economic Profit
Residual Income ₹736.11 ₹986.40 ₹5,094 76
ROIC Compounder ₹1,244 ₹1,498 ₹1,777 67
Growth Earnings
Growth-Adj P/E ₹1,172 ₹1,674 ₹2,177 68

Widest divergence: DCF Models (₹2,277) versus Asset-Based (₹309.76). Highest evidence: Residual Income (76).

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Key figures & financial health

Free cash flow ₹10.1B FY2025
P/E ratio 45.6 as of Aug 15, 2026
EPS (TTM) ₹126.65

Figures from reported company fundamentals · as of Aug 15, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 78/100

Of which business quality 76 · Market factors (momentum, volatility) 35

Profitability 70
Margins and returns on capital today
Quality Growth 46
Are margins and returns improving?
Cashflow 80
Earnings quality: real cash, not paper profit
Fin. Strength 92
Balance sheet, leverage, solvency risk
Investment 84
Disciplined investing over empire-building
Low Volatility 82
Calm price path (market factor)
Momentum 22
Price trend over the last 3–12 months (market factor)
52W Momentum 2
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.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

506285 reported revenue of ₹55.0B in FY2025 versus ₹47.3B in FY2021, a compound +3.8%/yr. Reported net income was ₹6.9B in FY2025, compounding +1.7%/yr from FY2021.

Growth Quality 69/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
₹55.0B
Latest YoY
+0.4%
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.
+2.3%
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.
+5.2%
Avg. growth/yr (10Y) 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.
+6.6%
Revenue +3.8%/yr
FY21 ₹47.3B
FY22 ₹51.4B
FY23 ₹51.0B
FY24 ₹54.7B
FY25 ₹55.0B
Net income +1.7%/yr
FY21 ₹6.5B
FY22 ₹7.6B
FY23 ₹7.4B
FY24 ₹5.7B
FY25 ₹6.9B

506285 screens 61% overvalued. Compare with BASF SE →

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Cite: Fair Value Calculator (2026). "506285 Fair Value". https://www.fairvalue-calculator.com/stock/506285

Peer Group

Chemicals · 331 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 77 · Top 25%
Fair Value upside −61% · Bottom 25%
Return on assets 0% · Below median
Net margin (TTM) 0% · Below median
Operating margin (TTM) 0% · Bottom 25%
Revenue growth 0% · Below median

Valuation Multiples vs Chemicals median · lower = cheaper

P/E (TTM) 45.6× · Pricier than 75% of peers
P/B 0.09× · Cheaper than 75% of peers
P/FCF 0.3× · Cheaper than median

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 stocks, each showing price versus our Fair Value estimate (as of Aug 15, 2026).

Stock Price Fair Value vs Fair Value
BASF SE BASN 1,034 MXN 467.04 MXN -55%
PT Barito Pacific Tbk, BRPT 1,950 IDR 1,608 IDR -18%
LG Chem, Ltd 051910 275,500 KRW 587,755 KRW +113%
SRF Limited 503806 ₹2,609 ₹749.17 -71%
542812 542812 ₹4,709 ₹791.05 -83%
Navin Fluorine International Limited NAVINFLUOR ₹8,357 ₹2,146 -74%
Kansai Nerolac Paints Limited 500165 ₹209.25 ₹80.51 -62%
Deepak Nitrite Limited DEEPAKNTR ₹1,718 ₹679.17 -60%
KCC Corporation 002380 454,000 KRW 1,763,304 KRW +288%
Deepak Fertilisers And Petrochemicals Corporation DEEPAKFERT ₹1,456 ₹990.72 -32%

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Frequently asked questions

Is 506285 overvalued or undervalued?
As of Aug 15, 2026, our model estimates a fair value of ₹1,589 versus a price of ₹4,048, about −61% (overvalued).
What is the fair value of 506285?
Our model-based fair value for 506285 is ₹1,589 (as of Aug 15, 2026), built from audited fundamentals. The current price is ₹4,048.
What is the quality score of 506285?
506285 has a Quality Score of 78/100. 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 net profit margin of 506285?
The net profit margin of 506285 is about 0.0%, meaning it keeps roughly 0.0% of revenue as net income. Based on the latest reported figures.

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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