Valuation Metrics Reflect Enhanced Price Appeal
Alpex Solar’s current price-to-earnings (P/E) ratio stands at 23.22, a figure that has contributed to its upgraded valuation grade from fair to attractive as of early January 2026. This P/E multiple is notably lower than several industry peers, including Apar Industries and Saatvik Green, whose P/E ratios hover around 32.37 and 31.97 respectively, indicating that Alpex Solar is trading at a relative discount on earnings basis.
Complementing this, the company’s price-to-book value (P/BV) ratio is 4.07, which, while elevated compared to traditional benchmarks, remains reasonable within the context of the Other Electrical Equipment sector. This P/BV ratio is significantly more attractive than that of Marsons and Spectrum Electricals, which are classified as very expensive with P/E multiples of 76.02 and 85.68 respectively.
Enterprise value to EBITDA (EV/EBITDA) for Alpex Solar is 15.76, again positioning the company favourably against peers such as Saatvik Green (23.65) and Apar Industries (17.81). This metric underscores the company’s operational earnings strength relative to its enterprise value, reinforcing the valuation upgrade.
Comparative Peer Analysis Highlights Relative Value
When benchmarked against its peer group within the Other Electrical Equipment industry, Alpex Solar’s valuation metrics suggest a more compelling entry point for investors. For instance, Waaree Renewable Energy, despite being in a related renewable segment, is considered expensive with a P/E of 22.57 but a higher PEG ratio of 0.18 compared to Alpex’s exceptionally low PEG of 0.09. This low PEG ratio indicates that Alpex Solar’s earnings growth prospects are undervalued relative to its price.
Other peers such as Vikran Engineering and HPL Electric also hold attractive valuations, but Alpex Solar’s combination of a strong return on capital employed (ROCE) of 22.79% and return on equity (ROE) of 17.51% further supports its investment case. These profitability metrics are indicative of efficient capital utilisation and shareholder value creation, which are critical factors for sustaining valuation premiums.
Stock Price and Market Performance Context
Alpex Solar’s current market price is ₹753.35, down 1.61% on the day and below its 52-week high of ₹1,449.70, but comfortably above its 52-week low of ₹495.00. This price movement reflects a degree of volatility, with the stock underperforming the Sensex over the short term. Year-to-date, the stock has declined by 8.3%, compared to a 3.1% drop in the Sensex, and over the past month, it has fallen 7.35% against the benchmark’s 2.38% decline.
However, the longer-term performance remains robust, with a one-year return of 19.4%, more than double the Sensex’s 8.91% gain. This divergence suggests that while short-term headwinds persist, the company’s fundamentals and growth trajectory continue to support a positive outlook.
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Mojo Score and Rating Revision
MarketsMOJO’s proprietary Mojo Score for Alpex Solar currently stands at 54.0, reflecting a Hold rating. This represents a downgrade from a previous Buy rating issued on 6 January 2026, signalling a more cautious stance amid recent market volatility and valuation shifts. The Market Cap Grade remains modest at 3, consistent with the company’s mid-cap status within the Other Electrical Equipment sector.
The downgrade to Hold does not negate the company’s underlying strengths but suggests that investors should weigh the improved valuation against near-term risks and sector dynamics. The stock’s day change of -1.61% on 1 February 2026 further emphasises the market’s current hesitancy.
Financial Health and Operational Efficiency
Alpex Solar’s robust ROCE of 22.79% and ROE of 17.51% highlight its operational efficiency and capacity to generate returns on invested capital and equity. These figures are particularly impressive in the context of the Other Electrical Equipment industry, where capital intensity and technological innovation are key competitive factors.
The company’s EV to Capital Employed ratio of 3.85 and EV to Sales of 2.51 further illustrate a balanced valuation relative to its asset base and revenue generation. These metrics, combined with a low PEG ratio of 0.09, suggest that Alpex Solar’s earnings growth is undervalued by the market, presenting a potential upside for investors who prioritise fundamental strength.
Sector and Market Outlook
The Other Electrical Equipment sector is currently navigating a complex environment marked by supply chain challenges and evolving demand patterns. Within this context, Alpex Solar’s valuation attractiveness relative to peers may position it favourably for capital inflows as investors seek quality mid-cap opportunities with sustainable growth prospects.
However, the stock’s recent underperformance relative to the Sensex and short-term price declines warrant a measured approach. Investors should consider the company’s long-term fundamentals alongside macroeconomic factors and sector-specific trends before committing capital.
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Investment Implications and Conclusion
Alpex Solar Ltd’s transition from a fair to an attractive valuation grade, supported by improved P/E and P/BV ratios and strong profitability metrics, signals a renewed price attractiveness for investors seeking exposure to the Other Electrical Equipment sector. The company’s valuation compares favourably against peers, many of which are trading at expensive multiples, suggesting potential for relative outperformance.
Nonetheless, the recent downgrade to a Hold rating and short-term price weakness highlight the importance of cautious portfolio positioning. Investors should balance the company’s fundamental strengths with prevailing market conditions and sector outlooks.
Overall, Alpex Solar presents a compelling case for consideration within a diversified mid-cap portfolio, particularly for those focused on quality growth stocks with improving valuation narratives.
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