Reverse DCF

What growth does the market imply for SHRIRAMPPS?

Working backwards from the current price to find the FCF growth assumption baked in.

conservative

2.5% implied annual FCF growth

The market is pricing in below-GDP growth — very conservative assumption. If the company delivers anywhere near its historical rate, there is significant upside.

Current Price

₹83

Historical Growth

3.7%

FCF Yield

10.48%

Price / FCF

9.5x

Plain English

To justify today's price of $82.53, SHRIRAMPPS.NS needs to grow its free cash flow at 2.5% per year for the next 10 years. That is 1.2% slower than its historical growth rate of 3.7%. This looks achievable — the market is not pricing in heroic assumptions. There may be genuine upside if the company executes.

Adjust Assumptions

11.1%
6%13%20%
4.0%
0%3%6%

Growth Scenarios

What the stock is worth at different growth assumptions

ScenarioFCF GrowthImplied IVMoS vs Price
Half implied1.3%₹73-11.9%
Implied2.5%₹83+0.5%
Historical3.7%₹94+13.3%
GDP rate10.0%₹170+106.1%

At Historical Growth Rate

It would take 3 years for SHRIRAMPPS to organically grow into today's price assuming its historical FCF growth of 3.7%.

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This is an analytical tool, not investment advice. Implied growth is a mathematical inversion of the DCF model and depends on WACC and terminal growth assumptions. YieldIQ is not registered with SEBI as an investment adviser.

SHRIRAMPPS Reverse DCF — Market Implies 2.5% FCF Growth | YieldIQ