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Universal Starch-Chem Allied Limited (524408) Fair Value & Analysis

Basic Materials · IN · Market cap ₹160M

US Universal Starch-Chem Allied Limited 524408 · BSE
Price₹189.40
Fair Value₹26.59
Upside-86.0%
Quality63/100
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Mixed Growth
Thin margins · 1.2% net margin
Low debt · generates free cash flow
Trails peers (4/11)
Narrow moat 21/100
Evidence: High Range ₹18.10 – ₹40.05 Share as image

Fair value as of: Aug 13, 2026

From 24 valuation models · updated 5 days ago

Fair value updated Aug 13, 2026, revised from ₹31.26 to ₹26.59 (−14.9%) since Aug 9, 2026.

A solid business, but screening 86% overvalued on our models.

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What matters now

  • The price sits above even our optimistic bull case (₹40.05). The favourable scenario is already priced in.
  • Solid but not exceptional quality (63/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (₹18.10 to ₹40.05) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

₹259.30 ₹60.00 Fair Value ₹26.59 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 ₹60.00 – ₹259.30 · fair‑value band ₹18.10 – ₹40.05 · the ₹189.40 price screens above the ₹26.59 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Universal Starch-Chem Allied Limited (524408) currently trades at ₹189.40, while our model-based Fair Value estimate is ₹26.59, implying the stock looks roughly 86.0% overvalued today. The Quality Score stands at 63/100 (solid 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, Universal Starch-Chem Allied Limited generated revenue of ₹2.6B at a net margin of 1.2%. Revenue declined 7.0% year over year. Net debt stands at ₹537M. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹18.10 (bear case) to ₹40.05 (bull case); at ₹189.40, 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 14% below its 52-week high and 73% above its 52-week low. For context, the median of 10 Basic Materials peers we cover trades at -43% fair-value upside, at -86%, 524408 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
Growth DCF ₹237.24 ₹336.85 ₹454.30 80
Rev-Margin DCF ₹360.67 ₹625.82 ₹931.31 74
ROIC Compounder ₹345.30 ₹419.16 ₹497.86 72
All 24 models by family
DCF Models
FCF DCF ₹237.13 ₹353.17 ₹499.18 38
Owner Earnings ₹315.36 ₹462.66 ₹648.00 31
5Y Revenue Exit ₹360.67 ₹627.94 ₹971.20 39
5Y EBITDA Exit ₹360.03 ₹626.72 ₹938.21 41
5Y P/E Exit ₹271.56 ₹460.67 ₹658.38 38
10Y Revenue Exit ₹288.72 ₹495.31 ₹775.20 36
10Y EBITDA Exit ₹300.46 ₹494.59 ₹753.62 37
10Y P/E Exit ₹252.10 ₹395.86 ₹570.58 35
Earnings-Based
Graham-Dodd ₹212.49 ₹678.90 ₹905.24 54
Lynch FV ₹150.05 ₹214.36 ₹278.67 50
PEG = 1.0 ₹150.05 ₹214.36 ₹278.67 46
EPV ₹327.39 ₹373.06 ₹410.12 59
Multiples
P/E Multiple ₹398.41 ₹531.21 ₹664.02 63
P/S Multiple ₹398.41 ₹531.21 ₹664.02 58
P/B Multiple ₹398.41 ₹531.21 ₹664.02 55
EV/EBIT ₹568.42 ₹775.63 ₹982.84 53
EV/EBITDA ₹522.73 ₹714.70 ₹906.68 54
EV/Revenue ₹485.54 ₹716.43 ₹947.32 43
Asset-Based
NCAV (Graham) ₹98.38 ₹131.83 ₹196.76 50
Growth DCF
Growth DCF ₹237.24 ₹336.85 ₹454.30 80
Rev-Margin DCF ₹360.67 ₹625.82 ₹931.31 74
Economic Profit
Residual Income ₹180.66 ₹217.30 ₹420.64 61
ROIC Compounder ₹345.30 ₹419.16 ₹497.86 72
Growth Earnings
Growth-Adj P/E ₹341.02 ₹487.18 ₹633.33 68

Widest divergence: Multiples (₹531.21) versus Asset-Based (₹131.83). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) ₹2.6B
Revenue growth (YoY) -7.0%
Net margin 1.2%
Free cash flow ₹146M FY2026
Operating margin 4.0%
EPS (TTM) ₹7.25
More key figures
Net debt ₹537M FY2026

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

Quality Score breakdown

Overall quality 63/100

Of which business quality 63 · Market factors (momentum, volatility) 59

Profitability 65
Margins and returns on capital today
Quality Growth 78
Are margins and returns improving?
Cashflow 48
Earnings quality: real cash, not paper profit
Fin. Strength 48
Balance sheet, leverage, solvency risk
Investment 77
Disciplined investing over empire-building
Low Volatility 29
Calm price path (market factor)
Momentum 77
Price trend over the last 3–12 months (market factor)
52W Momentum 61
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

Universal Starch-Chem Allied Limited manufactures and sells starches and their derivatives, and other by-products in India. It offers maize starch powders for use in food, pharmaceutical, and textile, as well as in dry cell battery, cosmetic, adhesive, ceramic, detergent, laundry, mining and metallurgy, etc. applications.

Full company description

Universal Starch-Chem Allied Limited manufactures and sells starches and their derivatives, and other by-products in India. It offers maize starch powders for use in food, pharmaceutical, and textile, as well as in dry cell battery, cosmetic, adhesive, ceramic, detergent, laundry, mining and metallurgy, etc. applications. The company also provides unigel, liquid glucose, utexlose, white dextrin, unisol, dextrose monohydrate, dextrose anhydrous, dextrose syrup, high maltose corn syrup, caramel, maize germ, maize germ oil cake, maize gluten, and maize refined oil, as well as oxidized, cationic, esterified, and amphoteric starch. It also exports its products. Universal Starch-Chem Allied Limited was founded in 1973 and is based in Mumbai, India.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Universal Starch-Chem Allied Limited reported revenue of ₹4.9B in FY2026 versus ₹4.6B in FY2022, a compound +1.7%/yr. Reported net income was ₹131M in FY2026, compounding +3.5%/yr from FY2022.

Growth Quality 71/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
₹4.9B
Latest YoY
−0.5%
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.
−1.8%
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.
+10.5%
Avg. growth/yr (12Y) 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.
+8.4%
Revenue +1.7%/yr
FY22 ₹4.6B
FY23 ₹5.2B
FY24 ₹5.3B
FY25 ₹4.9B
FY26 ₹4.9B
Net income +3.5%/yr
FY22 ₹114M
FY23 ₹59.0M
FY24 ₹69.9M
FY25 ₹32.1M
FY26 ₹131M

524408 screens 86% overvalued. Compare with BASF India Limited →

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Cite: Fair Value Calculator (2026). "Universal Starch-Chem Allied Limited Fair Value". https://www.fairvalue-calculator.com/stock/524408

Peer Group

Basic Materials · 179 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 63 · Top 25%
Fair Value upside +140% · Top 25%
Return on assets 0% · Bottom 25%
Net margin (TTM) 1% · Below median
Operating margin (TTM) 4% · Below median
Revenue growth -7% · Bottom 25%
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.27× · Higher than 75% of peers

Valuation Multiples vs Basic Materials median · lower = cheaper

P/FCF 0.0× · Cheaper than 75% of peers
EV/EBITDA 1.4× · Cheaper than 75% of peers

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.

VALUE 100 · sector 0
FUTURE 0 · sector 30
PAST 0 · sector 38
HEALTH 86 · sector 98
DIVIDEND 0 · sector 40

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%
Diamines and Chemicals Limited 500120 ₹240.30 ₹47.45 -80%
Lords Chloro Alkali Limited 500284 ₹137.75 ₹41.77 -70%
Ishan Dyes & Chemicals Limited 531109 ₹50.00 ₹59.26 +19%
Laffans Petrochemicals Limited 524522 ₹28.50 ₹8.78 -69%

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Frequently asked questions

Is Universal Starch-Chem Allied Limited (524408) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹26.59 versus a price of ₹189.40, about −86% (overvalued).
What is the fair value of 524408?
Our model-based fair value for Universal Starch-Chem Allied Limited is ₹26.59 (as of Aug 13, 2026), built from audited fundamentals. The current price is ₹189.40.
What is the quality score of 524408?
Universal Starch-Chem Allied Limited has a Quality Score of 63/100. 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 Universal Starch-Chem Allied Limited (524408)?
Universal Starch-Chem Allied Limited reported trailing-twelve-month revenue of about ₹2.6B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 524408?
The net profit margin of Universal Starch-Chem Allied Limited is about 1.2%, meaning it keeps roughly 1.2% 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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