Bansal Roofing Products Ltd Valuation Shifts to Very Attractive Amid Market Volatility

Valuation Metrics Signal Enhanced Attractiveness

As of the latest assessment dated 2 January 2026, Bansal Roofing Products Ltd’s P/E ratio stands at 18.02, a figure that has contributed to an upgrade in its valuation grade from "attractive" to "very attractive". This is a significant improvement when juxtaposed with its historical valuation levels and the broader Iron & Steel Products sector, where peers often exhibit higher or more volatile multiples.

The company’s price-to-book value ratio is currently 3.88, which, while above the traditional value benchmark of 3.0, remains reasonable given the firm’s robust return metrics. The enterprise value to EBITDA (EV/EBITDA) ratio is 11.38, reflecting a balanced valuation relative to earnings before interest, tax, depreciation and amortisation. These metrics collectively underpin the recent positive re-rating of the stock’s valuation profile.

Comparative Peer Analysis

When compared with key industry peers, Bansal Roofing’s valuation stands out favourably. For instance, Everest Industries is classified as "risky" due to loss-making status and lacks meaningful P/E data, while Visaka Industries, despite a "very attractive" valuation tag, trades at a higher P/E of 35.54 and a lower EV/EBITDA of 8.6. Sahyadri Industries also holds a "very attractive" valuation with a P/E of 15.05 and EV/EBITDA of 6.16, but its PEG ratio is zero, indicating no growth premium.

Other peers such as Navkar Urban and Vruddhi Engineer either do not qualify or are considered risky, highlighting Bansal Roofing’s relative stability and valuation appeal within the sector. The company’s PEG ratio of 0.12 further emphasises undervaluation relative to earnings growth, signalling potential upside for investors.

Robust Financial Performance Supports Valuation

Bansal Roofing’s financial health remains solid, with a return on capital employed (ROCE) of 30.37% and return on equity (ROE) of 21.53%, both indicative of efficient capital utilisation and shareholder value creation. The dividend yield, while modest at 0.96%, complements the company’s growth-oriented profile.

Enterprise value to capital employed (EV/CE) at 3.98 and EV to sales at 1.08 further reinforce the company’s operational efficiency and valuation discipline. These metrics, combined with the improved valuation grades, suggest that the market is beginning to price in the company’s strong fundamentals more favourably.

Price Movement and Market Capitalisation Context

The stock closed at ₹103.90 on 2 January 2026, down marginally by 0.76% from the previous close of ₹104.70. The day’s trading range was between ₹103.20 and ₹105.65, with a 52-week high of ₹135.40 and a low of ₹81.33. Despite the recent slight dip, the stock has demonstrated strong long-term returns, significantly outperforming the Sensex benchmark.

Over the past year, Bansal Roofing has delivered an 11.12% return compared to Sensex’s 8.51%. More impressively, the stock’s 3-year and 5-year returns stand at 54.96% and 1173.87% respectively, dwarfing the Sensex’s 40.02% and 77.96% gains over the same periods. The 10-year return is a staggering 1731.85%, underscoring the company’s exceptional growth trajectory and compounding ability.

Market Sentiment and Mojo Score Revision

Reflecting the evolving valuation and market conditions, the company’s Mojo Score has been revised to 51.0, with a corresponding Mojo Grade downgraded from "Buy" to "Hold" as of 15 December 2025. This adjustment signals a more cautious stance, balancing the very attractive valuation against recent price volatility and sector headwinds.

The market capitalisation grade remains at 4, indicating a mid-cap status with moderate liquidity and investor interest. The downgrade in Mojo Grade suggests that while the stock is attractively valued, investors should weigh near-term risks and broader market factors before committing fresh capital.

Sectoral and Industry Considerations

The Iron & Steel Products sector continues to face cyclical pressures, including raw material cost fluctuations and demand variability. Bansal Roofing’s strong operational metrics and valuation improvements position it well to navigate these challenges, but investors should remain vigilant to macroeconomic developments and policy changes impacting the sector.

Peer companies exhibit a wide range of valuation and risk profiles, with some loss-making entities and others trading at stretched multiples. Bansal Roofing’s relative stability and very attractive valuation grade provide a compelling case for inclusion in diversified portfolios focused on quality mid-cap industrials.

Investment Outlook and Conclusion

Bansal Roofing Products Ltd’s recent valuation upgrade to "very attractive" reflects a meaningful shift in market perception, supported by solid financial performance and favourable comparative metrics. The company’s P/E of 18.02 and P/BV of 3.88, combined with a PEG ratio of 0.12, suggest that the stock is undervalued relative to its growth prospects and sector peers.

However, the downgrade in Mojo Grade to "Hold" advises prudence, as the stock’s recent price softness and sector uncertainties temper enthusiasm. Investors should consider Bansal Roofing as a quality mid-cap candidate with strong fundamentals but remain mindful of market volatility and cyclical risks inherent in the Iron & Steel Products industry.

Long-term investors may find the stock’s valuation compelling, especially given its impressive multi-year returns and operational efficiency. Nonetheless, a balanced approach incorporating peer comparisons and sector outlooks is advisable to optimise portfolio outcomes.

Key Financial Metrics at a Glance:

• P/E Ratio: 18.02


• Price to Book Value: 3.88


• EV to EBIT: 13.10


• EV to EBITDA: 11.38


• EV to Capital Employed: 3.98


• EV to Sales: 1.08


• PEG Ratio: 0.12


• Dividend Yield: 0.96%


• ROCE: 30.37%


• ROE: 21.53%

Performance Comparison with Sensex:

• 1 Week: -1.14% vs Sensex -0.26%


• 1 Month: -4.72% vs Sensex -0.53%


• Year-to-Date: -0.76% vs Sensex -0.04%


• 1 Year: +11.12% vs Sensex +8.51%


• 3 Years: +54.96% vs Sensex +40.02%


• 5 Years: +1173.87% vs Sensex +77.96%


• 10 Years: +1731.85% vs Sensex +225.63%

In summary, Bansal Roofing Products Ltd’s valuation repositioning enhances its appeal for investors seeking exposure to the Iron & Steel Products sector with a focus on quality and growth. While the current market environment warrants caution, the company’s fundamentals and relative valuation strength provide a solid foundation for potential appreciation over the medium to long term.

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