Aplab Ltd Valuation Shifts Highlight Price Attractiveness Concerns

Valuation Metrics Signal Elevated Risk

Recent data reveals that Aplab Ltd’s price-to-earnings (P/E) ratio stands at 8.39, a figure that might superficially appear modest but is misleading when contextualised with other valuation multiples and company fundamentals. The price-to-book value (P/BV) ratio has surged to 4.56, signalling that the stock is trading at a significant premium to its book value. More strikingly, the enterprise value to EBITDA (EV/EBITDA) ratio is elevated at 32.43, a level that far exceeds typical industry norms and suggests the market is pricing in expectations that may be difficult to justify given recent performance.

These valuation grades have shifted Aplab’s status from “risky” to “very expensive” as of 20 January 2026, reflecting a deteriorating outlook from the previous “Strong Sell” grade. The company’s Mojo Score currently stands at 33.0, reinforcing the Sell rating and indicating weak momentum and fundamental concerns.

Comparative Peer Analysis Highlights Overvaluation

When compared with peers in the Other Electrical Equipment industry, Aplab’s valuation appears stretched. For instance, Swelect Energy and Elin Electronics, both rated as “Very Attractive,” sport P/E ratios of 24.23 and 18.08 respectively, with EV/EBITDA multiples of 7.71 and 9.12. These companies demonstrate more reasonable valuations relative to their earnings and operational cash flows, suggesting better price-to-value alignment.

Other peers such as Forbes Precision and Jasch Gauging also maintain fair to very attractive valuations, with P/E ratios in the 15 to 23 range and EV/EBITDA multiples below 13. Even Edvenswa Enterprises, another “Very Attractive” stock, trades at a P/E of 6.41 and EV/EBITDA of 4.61, underscoring the disparity with Aplab’s stretched multiples.

In contrast, Aplab’s EV to EBIT ratio of 37.60 and EV to Capital Employed of 2.54 further highlight the premium investors are paying despite the company’s negative return on capital employed (ROCE) of -11.58%. This negative ROCE contrasts sharply with its return on equity (ROE) of 54.36%, a divergence that may reflect accounting nuances or capital structure issues but nonetheless raises questions about operational efficiency and capital utilisation.

Price Performance and Market Sentiment

Aplab’s share price has experienced a significant decline, closing at ₹68.59 on 21 January 2026, down 5.00% from the previous close of ₹72.20. The stock’s 52-week high was ₹93.00, while the low was ₹37.71, indicating considerable volatility over the past year. Intraday trading on the latest session saw a high of ₹75.47 and a low of ₹68.59, reflecting persistent selling pressure.

Examining returns relative to the benchmark Sensex reveals a challenging environment for Aplab investors. Over the past week, the stock fell by 10.19%, compared to a modest 1.73% decline in the Sensex. The one-month and year-to-date returns also lag significantly, with losses of 11.38% and 8.87% respectively, while the Sensex posted declines of 3.24% and 3.57% over the same periods. Even on a one-year basis, Aplab’s return of -12.06% contrasts sharply with the Sensex’s positive 6.63% gain.

Longer-term performance shows some resilience, with three- and five-year returns of 208.96% and 234.59% respectively, outperforming the Sensex’s 35.56% and 65.05% gains. However, the ten-year return of 138.16% trails the Sensex’s 241.54%, suggesting that recent years have been more favourable for Aplab than the broader market but that momentum has waned.

Financial Health and Operational Efficiency Concerns

Despite a robust ROE of 54.36%, Aplab’s negative ROCE of -11.58% is a red flag, indicating that the company is not generating adequate returns on the capital employed in its operations. This discrepancy may point to inefficiencies or losses in core business activities, which could undermine future profitability and justify the cautious market stance.

Moreover, the company’s EV to sales ratio of 1.63 and EV to capital employed of 2.54 suggest that investors are paying a premium for sales and capital base that may not be translating into sustainable earnings or cash flow. The PEG ratio of 0.03, while low, is not necessarily a positive indicator in this context, as it may reflect depressed earnings growth expectations or accounting distortions.

Outlook and Investor Considerations

Given the current valuation profile and operational metrics, Aplab Ltd’s stock appears overvalued relative to its earnings power and peer group. The downgrade from Strong Sell to Sell, coupled with a Mojo Grade of 33.0, signals that the market is increasingly cautious about the company’s prospects.

Investors should weigh the elevated P/BV and EV/EBITDA multiples against the company’s negative ROCE and recent price underperformance. While the long-term returns have been impressive, the recent trend suggests a loss of momentum and potential headwinds ahead.

Comparative analysis with peers such as Swelect Energy, Elin Electronics, and Edvenswa Enterprises highlights more attractive valuation opportunities within the sector. These companies combine reasonable multiples with stronger operational metrics, making them potentially better candidates for value-focused portfolios.

In conclusion, Aplab Ltd’s shift to a very expensive valuation grade, despite weakening fundamentals and price declines, warrants a cautious approach. Investors should monitor upcoming earnings releases and sector developments closely, while considering diversification into more attractively valued peers.

Summary of Key Valuation Metrics for Aplab Ltd

• P/E Ratio: 8.39


• Price to Book Value: 4.56


• EV to EBIT: 37.60


• EV to EBITDA: 32.43


• EV to Capital Employed: 2.54


• EV to Sales: 1.63


• PEG Ratio: 0.03


• ROCE (Latest): -11.58%


• ROE (Latest): 54.36%

Market Capitalisation and Trading Data

Current Price: ₹68.59 | Previous Close: ₹72.20 | 52-Week High: ₹93.00 | 52-Week Low: ₹37.71

Day Change: -5.00%

Returns Comparison with Sensex

• 1 Week: -10.19% vs Sensex -1.73%


• 1 Month: -11.38% vs Sensex -3.24%


• Year-to-Date: -8.87% vs Sensex -3.57%


• 1 Year: -12.06% vs Sensex +6.63%


• 3 Years: +208.96% vs Sensex +35.56%


• 5 Years: +234.59% vs Sensex +65.05%


• 10 Years: +138.16% vs Sensex +241.54%

Overall, the valuation deterioration and price weakness suggest that Aplab Ltd is currently a less attractive proposition compared to its sector peers and broader market benchmarks.

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