One should not take decision based on Price. It should be based on Price & Growth aspects. That is the reason Big Investors like Warren Buffet relies on Intrinsic Value & Fair Value.
Intrinsic Value is the present value of the company after applying the past growth rate for the future next 10 years.
Fair Value is discount of 30% on Intrinsic Value.
Rule of Thumb
- If the CMP is less than Fair Value then BUY.
- If the CMP is greater than Fair Value & less than Intrinsic Value then HOLD.
- If the CMP is greater than Intrinsic Value then SELL
Intrinsic Value & Fair Value of Largecaps
| Company | CMP | Intrinsic Value | Fair Value | Recommendation |
| HDFC Bank | 1289 | 971 | 680 | Sell |
| SBI | 332 | 187 | 131 | Sell |
| Reliance Industries | 1546 | 1747 | 1223 | Hold |
| Adani Ports | 368 | 681 | 477 | Buy |
| Tata Motors | 175 | Loss | Loss | Sell |
| Ashok Leyland | 80 | 60 | 42 | Sell |
| Infosys | 733 | 490 | 343 | Sell |
| TCS | 2216 | 1865 | 1306 | Sell |
| Sun Pharmaceuticals | 430 | 678 | 475 | Buy |
| Dr. Reddy’s Laboratories | 2896 | 8844 | 6191 | Buy |
Intrinsic Value & Fair Value of Smallcaps & Midcaps
| Company | CMP | Intrinsic Value | Fair Value | Recommendation |
| Meghmani Organics | 56.65 | 539.32 | 377.53 | Buy |
| Assoc.Alcohols | 185.6 | 781.22 | 546.86 | Buy |
| PSP Projects | 495.55 | 1682 | 1177.4 | Buy |
| KEI Inds. | 474.95 | 1375.16 | 962.61 | Buy |
| Gulf Oil Lubricants | 812.1 | 1197.69 | 838.38 | Buy |
| Tata Elxsi | 827.85 | 277.79 | 194.46 | Sell |
| Automotive Axles | 819.6 | 1304.42 | 913.09 | Buy |
| Acrysil | 95.2 | 334.84 | 234.39 | Buy |
| BCL Industries | 74.45 | 1231.71 | 862.2 | Buy |
| Bharat Parenterals | 168 | 4183.17 | 2928.22 | Buy |
| Sandhar Tech | 250.1 | 372.92 | 261.05 | Buy |
| Aster DM Health | 162.7 | 131.47 | 92.03 | Sell |
| Hester Bios | 1452.1 | 3100.36 | 2170.25 | Buy |
| Bella Casa | 119.75 | 357.1 | 249.97 | Buy |
| Bhageria Indust. | 116.85 | 605.03 | 423.52 | Buy |
| SRG Housing | 83.1 | 1128.7 | 790.09 | Buy |
| Can Fin Homes | 395.35 | 354.21 | 247.95 | Sell |
| Jiya Eco-Product | 26.65 | 730.91 | 511.64 | Buy |
| Veto Switchgears | 36.55 | -266.29 | -186.4 | Hold |
| Caplin Point Lab | 294.6 | 938.35 | 656.85 | Buy |
| Maithan Alloys | 464.85 | -1193.73 | -835.61 | Hold |
| Wonderla Holiday | 246.9 | 595.92 | 417.15 | Buy |
Intrinsic Value Calculator
For your ease, we have created an Intrinsic Value Calculator for India.
Would it be possible to revisit these stocks now and publish an updates status?
Hi Investor,
It will be difficult to update the same as few companies PE/EPS not there in screener.
Instead you can use our Intrinsic Value Calculator (https://futurecaps.com/intrinsic-value-calculator/) and Screener.in site to perform the same.
Advisor
Thanks. Appreciate that reply.