Longspur International Ventures Ltd Valuation Shifts to Fair Amid Market Volatility

Valuation Metrics: A Closer Look

At the heart of Longspur International Ventures Ltd’s valuation shift lies its price-to-earnings (P/E) ratio, currently standing at 13.44. This figure marks a notable moderation from previous levels that had positioned the stock as expensive. When compared to its peer group within the NBFC sector, Longspur’s P/E ratio is considerably more reasonable. For instance, Indiabulls, a key competitor, trades at a P/E of 86.9, while Cropster Agro and MIC Electronics are valued at 94.09 and 108.47 respectively, underscoring Longspur’s relative affordability.

The price-to-book value (P/BV) ratio further supports this narrative. Longspur’s P/BV is an exceptionally low 0.36, suggesting the stock is trading well below its book value. This contrasts sharply with many peers, some of which command significantly higher multiples, indicating a potential undervaluation or market scepticism about asset quality or earnings sustainability.

Enterprise value to EBITDA (EV/EBITDA) is another critical metric where Longspur posts a figure of 10.70, which is moderate compared to the sector’s more stretched valuations. For example, Indiabulls’ EV/EBITDA stands at 23.03, while Cropster Agro’s is 91.13, highlighting Longspur’s more conservative valuation stance.

Financial Performance and Returns

Despite the valuation reset, Longspur’s financial performance metrics remain subdued. The company’s return on capital employed (ROCE) is 3.72%, and return on equity (ROE) is 2.69%, both of which are modest and may explain investor caution. These returns are below what many investors expect from NBFCs, which typically operate with higher leverage and aim for stronger profitability ratios.

Examining stock price performance relative to the broader market reveals a mixed picture. Over the past year, Longspur has delivered a robust 22.88% return, outperforming the Sensex’s 9.01% gain. However, longer-term returns tell a different story. Over three years, the stock has declined by 45.65%, significantly underperforming the Sensex’s 38.88% rise. Over five years, Longspur’s 32.87% gain also lags behind the Sensex’s 64.25% appreciation. Notably, over a decade, the stock has delivered an impressive 683.67% return, far outpacing the Sensex’s 254.70%, reflecting strong historical growth despite recent volatility.

On the trading front, the stock closed at ₹7.68 on 11 Feb 2026, down 1.92% from the previous close of ₹7.83. The 52-week trading range spans from ₹4.93 to ₹10.70, indicating significant price volatility. Today’s intraday range was narrow, between ₹7.68 and ₹7.84, suggesting consolidation at current levels.

Peer Comparison Highlights Valuation Appeal

When benchmarked against peers, Longspur International Ventures Ltd’s valuation metrics stand out as more attractive. While many NBFCs are trading at elevated multiples, Longspur’s P/E and EV/EBITDA ratios suggest a more conservative market valuation. For example, Aayush Art and RRP Defense are trading at extraordinarily high P/E ratios of 943.35 and 433.1 respectively, with EV/EBITDA multiples exceeding 400 in some cases, signalling heightened risk or speculative pricing.

Conversely, some companies like India Motor Part and Aeroflex Enterprises are classified as very attractive or attractive, with P/E ratios of 17.15 and 18.76 respectively, and EV/EBITDA multiples of 21.71 and 8.01. Longspur’s current valuation metrics place it in the ‘fair’ category, suggesting it is reasonably priced relative to its sector peers, though not the cheapest option available.

Mojo Score and Grade Downgrade

MarketsMOJO’s proprietary scoring system assigns Longspur a Mojo Score of 41.0, which corresponds to a Sell rating. This represents a downgrade from the previous Hold grade as of 17 Nov 2025. The downgrade reflects concerns over the company’s modest profitability metrics, subdued return ratios, and recent price weakness. The Market Cap Grade of 4 further indicates a mid-tier market capitalisation status, which may limit liquidity and investor interest compared to larger NBFCs.

Investment Implications and Outlook

The shift from an expensive to a fair valuation grade signals a recalibration of investor expectations for Longspur International Ventures Ltd. While the stock’s low P/BV and moderate P/E ratios suggest price attractiveness, the company’s weak ROCE and ROE metrics temper enthusiasm. Investors should weigh the potential for valuation rerating against the backdrop of modest earnings quality and sector headwinds.

Longspur’s recent outperformance over the Sensex on a one-year basis is encouraging, but the longer-term underperformance over three and five years highlights volatility and execution challenges. The stock’s current trading range near ₹7.68, closer to its 52-week low than high, may offer a tactical entry point for value-oriented investors willing to accept risk in exchange for potential upside.

Conclusion: Valuation Reset Offers Cautious Optimism

Longspur International Ventures Ltd’s recent valuation adjustment from expensive to fair marks a pivotal moment for investors assessing the stock’s price attractiveness. While the company’s valuation metrics now appear more reasonable relative to peers, underlying profitability and return metrics remain subdued, justifying the recent downgrade to a Sell rating by MarketsMOJO.

Investors should consider the stock’s mixed performance history, sector dynamics, and current valuation in the context of their risk tolerance and portfolio objectives. The stock’s low P/BV and moderate P/E ratios may appeal to value investors seeking exposure to the NBFC sector at a discount, but caution is warranted given the company’s modest financial returns and competitive pressures.

Overall, Longspur International Ventures Ltd presents a nuanced investment case where valuation attractiveness has improved, but fundamental challenges persist. A careful, data-driven approach is essential for those contemplating exposure to this NBFC micro-cap.

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