Valuation Metrics Reflect Improved Attractiveness
As of 30 January 2026, AGI Greenpac’s P/E ratio stands at 12.57, a figure that positions the stock favourably within the packaging industry. This valuation is notably lower than several peers, including Garware Hi Tech, which trades at a P/E of 22.21, and TCPL Packaging at 18.54. The company’s price-to-book value of 1.89 further underscores its reasonable market pricing, especially when contrasted with the sector’s broader valuation spectrum.
Additionally, the enterprise value to EBITDA (EV/EBITDA) ratio of 7.77 indicates efficient operational leverage, outperforming some competitors such as Garware Hi Tech (15.12) and TCPL Packaging (10.63). The PEG ratio of 0.85 also suggests that AGI Greenpac’s earnings growth prospects are undervalued relative to its price, a positive signal for value-oriented investors.
Financial Performance and Returns Support Valuation
AGI Greenpac’s return on capital employed (ROCE) of 16.66% and return on equity (ROE) of 15.03% reflect solid profitability and efficient capital utilisation. These metrics are critical in assessing the company’s ability to generate sustainable returns, especially in a competitive packaging sector.
However, the stock has experienced a recent decline, with a day change of -4.46% and a year-to-date return of -13.54%, underperforming the Sensex’s modest -3.11% over the same period. Over the longer term, AGI Greenpac has delivered impressive returns, with a three-year gain of 112.00% and a five-year surge of 378.78%, significantly outpacing the Sensex’s 39.16% and 78.38% respectively. This long-term outperformance highlights the company’s growth trajectory despite short-term volatility.
Price Movement and Market Capitalisation Context
The stock closed at ₹647.55, down from the previous close of ₹677.80, with intraday trading ranging between ₹638.05 and ₹671.00. The 52-week high of ₹1,008.55 and low of ₹600.00 illustrate the stock’s volatility, yet the current price remains closer to the lower end of this range, reinforcing the valuation attractiveness.
AGI Greenpac’s market capitalisation grade is rated 3, indicating a mid-tier market cap status within its sector. This positioning offers a balance between growth potential and liquidity, appealing to investors seeking exposure to the packaging industry without the extremes of micro or large-cap volatility.
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Comparative Valuation: AGI Greenpac Versus Peers
When benchmarked against its peers, AGI Greenpac’s valuation metrics present a mixed but generally favourable picture. Uflex and Cosmo First, both rated as very attractive, trade at P/E ratios of 10.9 and 10.45 respectively, slightly lower than AGI Greenpac’s 12.57. However, their PEG ratios of 0.66 and 0.25 indicate potentially stronger growth prospects priced in by the market.
Huhtamaki India, another attractive peer, trades at a higher P/E of 14.12 and a PEG of 1.10, suggesting AGI Greenpac’s valuation is more conservative relative to growth expectations. Conversely, Garware Hi Tech’s expensive rating and elevated P/E and PEG ratios highlight the premium investors are paying for perceived quality or growth, which may not be justified given current market conditions.
Quality and Risk Assessment
AGI Greenpac’s Mojo Score of 44.0 and a downgrade from Hold to Sell on 23 October 2025 reflect cautionary signals from the market analytics platform. This downgrade is likely influenced by recent price weakness and sector headwinds, despite the company’s solid fundamentals. Investors should weigh these factors carefully, considering the company’s valuation improvement against the backdrop of a challenging operating environment.
The company’s dividend yield of 1.08% is modest but consistent, offering some income stability amid price fluctuations. The EV to capital employed ratio of 1.74 and EV to sales of 1.76 further indicate efficient asset utilisation, supporting the case for a fundamentally sound business.
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Long-Term Performance Versus Market Benchmarks
AGI Greenpac’s long-term returns have been impressive, with a 10-year return of 136.81% compared to the Sensex’s 231.98%. While the stock has underperformed the benchmark over the last year (-16.94% versus Sensex’s +7.88%), its three- and five-year returns of 112.00% and 378.78% respectively demonstrate strong growth resilience.
This divergence between short-term underperformance and long-term outperformance suggests that the recent valuation adjustment may offer a buying opportunity for investors with a medium to long-term horizon, particularly given the company’s attractive valuation metrics and solid profitability ratios.
Conclusion: Valuation Shift Offers Strategic Entry Point
AGI Greenpac Ltd’s transition from a very attractive to an attractive valuation grade reflects a nuanced market reassessment. While the downgrade in Mojo Grade to Sell signals caution, the company’s P/E, P/BV, and EV/EBITDA ratios remain compelling relative to peers and historical levels. Investors should consider the stock’s solid returns on capital, reasonable dividend yield, and long-term growth record when evaluating its potential.
Given the current price near the lower end of its 52-week range and the sector’s evolving dynamics, AGI Greenpac presents a valuation-driven opportunity for discerning investors willing to navigate near-term volatility for potential future gains.
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