S H Kelkar Valuation

Q: What is the Fair Price of SHK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

SHK (₹266.85) is trading below our estimate of [[fair value]] (₹669.08)

Is SHK undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SHK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SHK (₹266.85) is trading below our estimate of fair value (₹669.08)

Significantly Below Fair Value: SHK is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SHK?

Key metric: As SHK is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for SHK. This is calculated by dividing SHK's market cap by their current revenue.
What is SHK's PS Ratio?
PS Ratio	1.8x
Sales	₹20.82b
Market Cap	₹36.94b

SHK key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.1x
Enterprise Value/EBITDA	14x
PEG Ratio	3.8x

Price to Sales Ratio vs Peers

How does SHK's PS Ratio compare to its peers?

The above table shows the PS ratio for SHK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	9.6x
539837 Raghav Productivity Enhancers	23x	n/a	₹37.8b
ADVENZYMES Advanced Enzyme Technologies	6.6x	15.6%	₹41.0b
ROSSARI Rossari Biotech	2.2x	16.6%	₹42.9b
FCL Fineotex Chemical	6.5x	20.3%	₹37.8b
SHK S H Kelkar	1.8x	10.4%	₹36.9b

Price-To-Sales vs Peers: SHK is good value based on its Price-To-Sales Ratio (1.8x) compared to the peer average (9.6x).

Price to Sales Ratio vs Industry

How does SHK's PS Ratio compare vs other companies in the IN Chemicals Industry?

29 Companies	Price / Sales	Estimated Growth	Market Cap
523630 National Fertilizers	0.2x	n/a	US$628.87m
500339 Rain Industries	0.3x	n/a	US$590.28m
ZUARI Zuari Agro Chemicals	0.2x	n/a	US$108.74m
JAYAGROGN Jayant Agro-Organics	0.4x	n/a	US$99.38m

29 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: SHK is expensive based on its Price-To-Sales Ratio (1.8x) compared to the Indian Chemicals industry average (1.7x).

Price to Sales Ratio vs Fair Ratio

What is SHK's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SHK PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.8x
Fair PS Ratio	2.2x

Price-To-Sales vs Fair Ratio: SHK is good value based on its Price-To-Sales Ratio (1.8x) compared to the estimated Fair Price-To-Sales Ratio (2.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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