Valuation Overview and Recent Changes
As of 23 February 2026, Amrapali Industries Ltd trades at ₹14.70, slightly up from the previous close of ₹14.39, marking a day change of 2.15%. The stock’s 52-week range spans from ₹12.65 to ₹20.24, indicating a moderate volatility band. The company’s market capitalisation remains modest, reflected in a Market Cap Grade of 4, consistent with its micro-cap status.
Most notably, the valuation grade for Amrapali has been downgraded from “attractive” to “fair” as of late December 2025, signalling a recalibration of investor expectations. The P/E ratio currently stands at 15.78, a level that is neither cheap nor expensive relative to the sector but represents a significant improvement from prior periods when the stock was considered undervalued.
The price-to-book value ratio is 2.24, which suggests that the stock is trading at more than twice its book value. While this is not excessive, it is a departure from earlier valuations that favoured the stock’s price-to-book attractiveness. Other valuation multiples such as EV/EBITDA at 33.06 and EV/EBIT at 45.37 remain elevated, reflecting the company’s earnings profile and capital structure.
Comparative Analysis with Peers
When benchmarked against peers within the Trading & Distributors sector, Amrapali’s valuation metrics present a mixed picture. For instance, Indiabulls, a sector peer, is classified as “Very Expensive” with a P/E ratio of 77.75 and EV/EBITDA of 20.39, indicating a premium valuation driven by stronger fundamentals or growth prospects. Conversely, India Motor Parts is deemed “Very Attractive” with a P/E of 15.85 and EV/EBITDA of 19.93, closely mirroring Amrapali’s P/E but with a more favourable EV/EBITDA multiple.
Other companies such as Cropster Agro and RRP Defense exhibit extremely high valuation multiples, with P/E ratios exceeding 75 and EV/EBITDA multiples above 300, categorising them as “Very Expensive” or “Risky.” This context places Amrapali in a relatively moderate valuation bracket, though the downgrade to “fair” suggests that the market is factoring in risks or slower growth prospects compared to its more attractively valued peers.
Our current Stock of the Month is out! This Large Cap from Automobiles - Passenger Cars emerged as the single best opportunity from our elite universe. Get the details now!
- - Current monthly selection
- - Single best opportunity
- - Elite universe pick
Financial Performance and Returns Context
Amrapali Industries’ return profile over various time horizons reveals a nuanced story. The stock has outperformed the Sensex over the short term, with a 1-week return of 1.52% versus the Sensex’s 0.23%, and a 1-month return of 2.15% compared to the Sensex’s 0.77%. Year-to-date, the stock has gained 2.44%, while the Sensex has declined by 2.82%, indicating relative resilience.
However, over longer periods, the stock’s performance has lagged broader market indices. The 1-year return is negative at -7.26%, contrasting with the Sensex’s robust 9.35% gain. Over three years, Amrapali has delivered 16.21% returns, significantly below the Sensex’s 36.45%. Despite this, the 5-year and 10-year returns are impressive at 233.33% and 243.46% respectively, surpassing the Sensex’s 62.73% and 249.29% returns, highlighting the stock’s long-term growth potential.
These figures suggest that while the stock has experienced volatility and underperformance in recent years, it retains a strong historical growth trajectory that may appeal to long-term investors willing to tolerate short-term fluctuations.
Profitability and Efficiency Metrics
Amrapali’s latest return on capital employed (ROCE) is a modest 1.79%, while return on equity (ROE) stands at 5.92%. These profitability ratios are relatively low, signalling limited efficiency in generating returns from capital and equity. Such subdued profitability metrics may partly explain the cautious valuation stance adopted by the market.
The company’s EV to capital employed ratio is 1.23, indicating that enterprise value is only slightly above the capital invested, which may reflect conservative market expectations about future growth and earnings stability.
Valuation Multiples in Perspective
The P/E ratio of 15.78 positions Amrapali Industries close to the median valuation for the sector, neither offering a significant discount nor commanding a premium. This contrasts sharply with peers like Aayush Art and A-1, which exhibit P/E ratios in the hundreds, categorising them as “Risky” or “Expensive.”
The PEG ratio, a measure of valuation relative to earnings growth, is exceptionally low at 0.02, which could indicate undervaluation if earnings growth prospects are robust. However, given the low ROCE and ROE, this figure may be distorted by low or negative growth expectations, warranting cautious interpretation.
Amrapali Industries Ltd or something better? Our SwitchER feature analyzes this micro-cap Trading & Distributors stock and recommends superior alternatives based on fundamentals, momentum, and value!
- - SwitchER analysis complete
- - Superior alternatives found
- - Multi-parameter evaluation
Mojo Score and Rating Implications
MarketsMOJO assigns Amrapali Industries a Mojo Score of 37.0, reflecting a cautious stance on the stock’s overall quality and outlook. The Mojo Grade has been downgraded from “Strong Sell” to “Sell” as of 29 December 2025, signalling a slight improvement in sentiment but still indicating a negative recommendation for investors.
This downgrade aligns with the shift in valuation grade from attractive to fair, suggesting that while the stock may have become less risky or more fairly priced, it still does not meet the criteria for a buy or hold recommendation based on current fundamentals and market conditions.
Investment Considerations and Outlook
Investors considering Amrapali Industries should weigh the stock’s moderate valuation multiples against its subdued profitability and mixed return profile. The fair valuation grade implies that the stock is reasonably priced relative to its earnings and book value but lacks the compelling discount that might attract value investors aggressively.
Long-term investors may find appeal in the company’s historical outperformance over five and ten years, but the recent underperformance relative to the Sensex and low ROCE/ROE metrics warrant caution. The elevated EV/EBIT and EV/EBITDA multiples suggest that the market is pricing in some operational challenges or growth uncertainties.
Given these factors, Amrapali Industries may be more suitable for investors with a higher risk tolerance and a long-term horizon, while those seeking stable earnings growth and stronger profitability might prefer peers with more attractive valuation and financial metrics.
Conclusion
Amrapali Industries Ltd’s transition from an attractive to a fair valuation grade reflects evolving market perceptions amid mixed financial signals. While the stock’s P/E and P/BV ratios place it in a moderate valuation zone relative to peers, its low profitability and recent performance challenges temper enthusiasm.
Investors should carefully analyse these valuation shifts in the context of their portfolio objectives and risk appetite, recognising that the stock’s current “Sell” rating and modest Mojo Score underscore the need for prudence. Monitoring future earnings trends and sector developments will be crucial to reassessing Amrapali’s investment appeal going forward.
Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today
