Mayur Floorings Valuation Shifts to Fair Amidst Mixed Market Performance

Valuation Metrics and Recent Changes

Mayur Floorings currently trades at a price of ₹18.01, down 4.96% from the previous close of ₹18.95. The stock’s 52-week high stands at ₹20.40, while the low is ₹8.91, indicating a wide trading range over the past year. The company’s price-to-earnings (P/E) ratio is elevated at 83.03, a figure that, while high, has been reassessed from an earlier ‘expensive’ valuation to a ‘fair’ grade by MarketsMOJO’s latest analysis dated 29 Dec 2025.

Complementing the P/E ratio, the price-to-book value (P/BV) ratio is 2.66, which aligns with the fair valuation status. Other valuation multiples include an enterprise value to EBIT and EBITDA both at 11.98, and an EV to capital employed of 1.91. The PEG ratio stands at 1.45, suggesting moderate growth expectations relative to earnings.

Return on capital employed (ROCE) and return on equity (ROE) remain subdued at 4.30% and 3.20% respectively, reflecting modest profitability and operational efficiency. Dividend yield data is not available, indicating either no dividend payout or insufficient data for calculation.

Comparative Analysis with Industry Peers

When benchmarked against peers in the miscellaneous sector, Mayur Floorings’ valuation appears less attractive. For instance, 20 Microns is rated ‘Very Attractive’ with a P/E of 10.31 and EV/EBITDA of 6.38, while Ravi Leela Granites is ‘Attractive’ with a P/E of 14.18 and EV/EBITDA of 11.92. Conversely, Nidhi Granites is ‘Very Expensive’ with a P/E of 88.47 and EV/EBITDA of 58.92, placing Mayur Floorings in a mid-range position.

Several peers such as Inani Marbles and Raw Edge Industries are classified as ‘Very Attractive’ despite being loss-making, highlighting the complexity of valuation in this sector. Meanwhile, companies like Kachchh Minerals and Milestone Global are tagged as ‘Risky’ due to their elevated P/E ratios and negative EV/EBITDA metrics.

Price Performance and Market Context

Mayur Floorings’ recent price performance has been under pressure, with a one-week decline of 5.16% compared to a near-flat Sensex movement of -0.01%. Over one month, the stock has fallen 7.02%, significantly underperforming the Sensex’s 1.31% decline. Year-to-date, the stock is down 1.58%, slightly outperforming the Sensex’s 1.94% fall.

However, the longer-term returns paint a more favourable picture. Over one year, Mayur Floorings has delivered a 9.15% return, marginally ahead of the Sensex’s 8.47%. The three-year return is a robust 71.36%, nearly double the Sensex’s 39.07%. Over five years, the stock has surged 407.32%, vastly outperforming the Sensex’s 70.43%. The ten-year return of 226.27% trails the Sensex’s 241.73%, but remains a strong performance indicator.

Mojo Score and Rating Update

MarketsMOJO has assigned Mayur Floorings a Mojo Score of 41.0, reflecting a ‘Sell’ grade as of 29 Dec 2025. This represents a downgrade from a previous ‘Not Rated’ status, signalling a more cautious outlook based on valuation and quality metrics. The market capitalisation grade is low at 4, indicating a smaller market cap relative to peers.

The downgrade is largely driven by the stretched P/E ratio and modest returns on capital, which weigh against the company’s growth prospects and profitability. Investors should weigh these factors carefully against the stock’s historical outperformance and sector dynamics.

Investment Implications and Outlook

The shift in Mayur Floorings’ valuation from expensive to fair suggests a recalibration of market expectations. While the P/E ratio remains elevated compared to many peers, the downgrade in valuation grade reflects a more balanced view of the company’s earnings quality and growth potential.

Investors should consider the company’s modest ROCE and ROE figures, which indicate limited efficiency in capital utilisation and shareholder returns. The absence of dividend yield further reduces the stock’s appeal for income-focused investors.

However, the company’s strong long-term price appreciation relative to the Sensex highlights its potential for capital gains, albeit with increased volatility and valuation risk. The recent price correction may offer a more attractive entry point for investors with a higher risk tolerance and a long-term horizon.

Comparisons with sector peers reveal that while Mayur Floorings is not the cheapest option, it is positioned better than some highly expensive or risky stocks. Investors should weigh these factors alongside broader market conditions and sector trends before making allocation decisions.

Conclusion

Mayur Floorings’ valuation adjustment to a fair grade marks a significant development in its market perception. Despite a high P/E ratio of 83.03, the stock’s price-to-book value and enterprise multiples suggest a more tempered valuation stance. The company’s long-term returns remain impressive, but recent price declines and modest profitability metrics warrant caution.

Given the current market environment and peer comparisons, investors should carefully analyse Mayur Floorings’ fundamentals and valuation before committing capital. The stock’s ‘Sell’ rating from MarketsMOJO underscores the need for prudence, while the availability of more attractive alternatives in the sector may influence portfolio decisions.

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