Current Rating and Its Significance
The 'Hold' rating assigned to Bansal Roofing Products Ltd indicates a balanced outlook for investors. It suggests that while the stock is not currently a strong buy, it also does not warrant a sell recommendation. Investors are advised to maintain their existing positions and monitor the stock closely for future developments. This rating reflects a comprehensive assessment of the company’s quality, valuation, financial trends, and technical indicators as of today.
Quality Assessment
As of 27 December 2025, Bansal Roofing Products Ltd exhibits an average quality grade. The company demonstrates high management efficiency, evidenced by a robust Return on Capital Employed (ROCE) of 21.86%. This level of capital utilisation indicates that the company is effectively generating profits from its invested capital, a positive sign for long-term sustainability. Additionally, the company maintains a low Debt to EBITDA ratio of 0.49 times, signalling a strong ability to service its debt obligations without undue financial strain.
Valuation Perspective
The valuation grade for Bansal Roofing Products Ltd is currently attractive. The stock trades at a Price to Book Value of 3.9, which is considered reasonable given the company’s financial performance. Notably, the stock is priced at a discount relative to its peers’ historical valuations, offering potential value for investors seeking exposure to the iron and steel products sector. The company’s Return on Equity (ROE) stands at 21.5%, reinforcing the attractiveness of its valuation in relation to profitability.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Financial Trend and Profitability
The financial trend for Bansal Roofing Products Ltd is very positive. The latest data shows a remarkable growth trajectory, with net profit increasing by 175.47% and net sales rising by 72.62% over the latest six-month period. The company has declared positive results for four consecutive quarters, underscoring consistent operational strength. Profit After Tax (PAT) for the latest six months stands at ₹3.48 crores, reflecting a growth of 145.07%, while Profit Before Tax less Other Income (PBT less OI) has surged by 184.51% to ₹2.02 crores.
Technical Analysis
From a technical standpoint, the stock currently holds a mildly bearish grade. Recent price movements show a slight decline of 0.10% on the day, with a one-month return of -6.67% and a three-month return of -4.55%. Despite these short-term fluctuations, the stock has delivered a strong year-to-date return of 11.15% and a one-year return of 18.90%, outperforming the broader BSE500 index, which returned 5.76% over the same period. This suggests that while technical indicators may signal caution in the near term, the stock’s longer-term momentum remains positive.
Market Position and Shareholding
Bansal Roofing Products Ltd is classified as a microcap company within the Iron & Steel Products sector. The majority shareholding is held by promoters, which often implies stable ownership and potential alignment of interests with minority shareholders. The company’s market-beating performance over the past year, combined with its strong fundamentals, positions it as a noteworthy contender within its sector.
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What the Hold Rating Means for Investors
For investors, the 'Hold' rating on Bansal Roofing Products Ltd suggests a cautious but optimistic stance. The company’s strong financial performance and attractive valuation provide a solid foundation, yet the mildly bearish technical signals and average quality grade advise prudence. Investors currently holding the stock may consider maintaining their positions while monitoring market developments and company announcements closely. Prospective investors might wait for clearer technical signals or further fundamental improvements before initiating new positions.
Summary of Key Metrics as of 27 December 2025
• Mojo Score: 54.0 (Hold grade)
• ROCE: 21.86%
• Debt to EBITDA: 0.49 times
• Net Profit Growth (latest six months): 175.47%
• Net Sales Growth (latest six months): 72.62%
• PAT (latest six months): ₹3.48 crores (growth of 145.07%)
• PBT less Other Income (quarterly): ₹2.02 crores (growth of 184.51%)
• Price to Book Value: 3.9
• ROE: 21.5%
• 1-Year Stock Return: +18.90% (vs BSE500 at +5.76%)
These figures collectively underpin the current 'Hold' rating, reflecting a company with solid financial health and growth prospects, tempered by some cautionary technical signals and average quality metrics.
Conclusion
Bansal Roofing Products Ltd’s current 'Hold' rating by MarketsMOJO, last updated on 15 December 2025, is supported by a thorough analysis of its quality, valuation, financial trends, and technical outlook as of 27 December 2025. While the company demonstrates strong profitability and attractive valuation, the mildly bearish technical indicators and average quality grade suggest investors should adopt a measured approach. Maintaining existing holdings while observing market and company developments is a prudent strategy at this juncture.
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