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540755 Fair Value & Analysis

Financials · IN · Market cap ₹258B

5 540755 540755 · BSE
Price₹356.55
Fair Value₹713.10
Upside+100.0%
Quality57/100
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Expensive Growth
Thin margins · 0.0% net margin
Low debt · generates free cash flow
Moderate moat 60/100
Evidence: High Range ₹534.83 – ₹891.38 Share as image

Fair value as of: Aug 2, 2026

From 22 valuation models · updated 5 days ago

Share price −0.7% over the past month.

A solid business, screening 100% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (₹534.83). The market is more pessimistic than our downside scenario.
  • Solid quality (57/100) at a price below fair value, the discount is the argument here, not the business quality.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

₹489.25 ₹99.41 Fair Value ₹713.10 Mar 2021 Jul 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 2, 2026.

How to read this chart

60‑month range ₹99.41 – ₹489.25 · fair‑value band ₹534.83 – ₹891.38 · the ₹356.55 price screens below the ₹713.10 fair value. Dashed = 300-day average. As of Aug 2, 2026.

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Analysis

540755 (540755) currently trades at ₹356.55, while our model-based Fair Value estimate is ₹713.10, implying the stock looks roughly 100.0% undervalued today. We read business quality at 57/100 (solid quality), in the Financials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Our scenario range runs from ₹534.83 (bear case) to ₹891.38 (bull case); at ₹356.55, the current price sits below 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 15% below its 52-week high and 3% above its 52-week low. For context, the median of 10 Financials peers we cover trades at 81% fair-value upside, at 100%, 540755 screens cheaper 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 BearBaseBull Evidence
Highest evidence
Growth DCF ₹195.27 ₹209.62 ₹230.63 80
Residual Income ₹399.84 ₹511.94 ₹1,301 76
ROIC Compounder ₹602.37 ₹717.25 ₹850.89 72
All 22 models by family
DCF Models
FCF DCF ₹194.40 ₹210.01 ₹234.00 38
Owner Earnings ₹805.25 ₹1,138 ₹1,650 31
5Y Revenue Exit ₹471.12 ₹713.10 ₹1,022 39
5Y EBITDA Exit ₹471.51 ₹713.80 ₹992.87 41
5Y P/E Exit ₹658.68 ₹1,053 ₹1,458 38
10Y Revenue Exit ₹357.66 ₹559.18 ₹827.55 36
10Y EBITDA Exit ₹372.60 ₹559.67 ₹805.44 37
10Y P/E Exit ₹493.14 ₹796.69 ₹1,159 35
Earnings-Based
Graham-Dodd ₹379.09 ₹996.44 ₹1,301 54
PEG = 1.0 ₹190.83 ₹272.61 ₹354.39 46
EPV ₹579.36 ₹652.60 ₹717.69 59
Multiples
P/E Multiple ₹836.23 ₹1,115 ₹1,394 63
P/S Multiple ₹582.61 ₹776.81 ₹971.01 58
P/B Multiple ₹710.79 ₹947.72 ₹1,185 55
EV/EBIT ₹873.53 ₹1,110 ₹1,346 53
EV/EBITDA ₹677.21 ₹848.16 ₹1,019 54
EV/Revenue ₹642.40 ₹847.27 ₹1,052 43
Asset-Based
NCAV (Graham) ₹203.32 ₹272.45 ₹406.65 50
Growth DCF
Growth DCF ₹195.27 ₹209.62 ₹230.63 80
Economic Profit
Residual Income ₹399.84 ₹511.94 ₹1,301 76
ROIC Compounder ₹602.37 ₹717.25 ₹850.89 72
Growth Earnings
Growth-Adj P/E ₹657.01 ₹938.59 ₹1,220 68

Widest divergence: Growth Earnings (₹938.59) versus Growth DCF (₹209.62). Highest evidence: Growth DCF (80).

Quality Score breakdown

Overall quality 57/100

Of which business quality 59 · Market factors (momentum, volatility) 45

Profitability 45
Margins and returns on capital today
Quality Growth 78
Are margins and returns improving?
Cashflow 36
Earnings quality: real cash, not paper profit
Fin. Strength 73
Balance sheet, leverage, solvency risk
Investment 53
Disciplined investing over empire-building
Low Volatility 82
Calm price path (market factor)
Momentum 34
Price trend over the last 3–12 months (market factor)
52W Momentum 22
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

540755 reported revenue of ₹539B in FY2025 versus ₹469B in FY2021, a compound +3.5%/yr. Reported net income was ₹96.6B in FY2025, compounding +41.9%/yr from FY2021.

Growth Quality 44/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
₹539B
Latest YoY
+31.8%
Avg. growth/yr (3Y)
+11.3%
Avg. growth/yr (5Y)
+2.9%
Avg. growth/yr (9Y)
+6.4%
Revenue +3.5%/yr
FY21 ₹469B
FY22 ₹391B
FY23 ₹372B
FY24 ₹409B
FY25 ₹539B
Net income +41.9%/yr
FY21 ₹23.9B
FY22 ₹69.1B
FY23 ₹66.9B
FY24 ₹74.3B
FY25 ₹96.6B

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Cite: Fair Value Calculator (2026). "540755 Fair Value". https://www.fairvalue-calculator.com/stock/540755

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.

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10 more Insurance stocks, each showing price versus our Fair Value estimate (as of Aug 2, 2026).

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Frequently asked questions

Is 540755 overvalued or undervalued?
As of Aug 2, 2026, our model estimates a fair value of ₹713.10 versus a price of ₹356.55, about +100% (undervalued).
What is the fair value of 540755?
Our model-based fair value for 540755 is ₹713.10 (as of Aug 2, 2026), built from audited fundamentals. The current price is ₹356.55.
What is the quality score of 540755?
540755 has a Quality Score of 57/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the net profit margin of 540755?
The net profit margin of 540755 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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