Valuation Metrics and Recent Changes
As of 10 Feb 2026, Prevest Denpro’s P/E ratio stands at 27.59, a level that, while still elevated, represents a moderation from previous extremes that classified the stock as very expensive. The price-to-book value is currently 4.69, signalling a premium valuation but one that is less stretched than before. These shifts have contributed to the company’s valuation grade being revised from very expensive to expensive, a move that coincided with the downgrade of its Mojo Grade from Hold to Sell on 6 Nov 2025.
Other valuation multiples provide further insight: the enterprise value to EBITDA (EV/EBITDA) ratio is 19.69, and the EV to EBIT ratio is 21.44, both indicating a relatively high valuation compared to earnings before interest, taxes, depreciation, and amortisation. The PEG ratio of 1.48 suggests moderate growth expectations priced into the stock, though this is higher than many peers in the healthcare services space.
Comparative Peer Analysis
When benchmarked against peers, Prevest Denpro’s valuation appears less attractive. For instance, BPL, a competitor in the same sector, is rated as very attractive with a P/E of 5.7 and an EV/EBITDA of 46.71, indicating a lower price relative to earnings despite higher operational leverage. Similarly, Raaj Medisafe is also considered very attractive with a P/E of 15.44 and EV/EBITDA of 15.93, offering investors a more compelling valuation proposition.
Other peers such as Nureca and Earkart show mixed signals; Nureca is expensive with a P/E of 26.28 but has a significantly higher EV/EBITDA of 38.53, while Earkart, despite a P/E of 32.49, does not qualify for valuation grading due to other financial factors. This peer comparison underscores that Prevest Denpro’s current valuation is on the higher side, especially when considering its growth and profitability metrics.
Financial Performance and Profitability
Prevest Denpro’s return on capital employed (ROCE) is an impressive 52.16%, reflecting efficient use of capital in generating earnings. The return on equity (ROE) stands at 16.98%, which is respectable but not exceptional within the sector. Dividend yield remains low at 0.22%, indicating limited cash returns to shareholders amid reinvestment or growth strategies.
Despite strong operational metrics, the stock’s price performance has been mixed. Year-to-date, the stock has declined by 8.24%, underperforming the Sensex’s modest fall of 1.36%. Over the past year, Prevest Denpro’s stock has dropped 14.92%, contrasting with the Sensex’s 7.97% gain. Longer-term returns over three years show a 28.22% appreciation, lagging the Sensex’s 38.25% rise, highlighting challenges in sustaining investor confidence amid valuation concerns.
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Price Movement and Market Capitalisation Context
Prevest Denpro’s current market price is ₹451.00, down 0.88% from the previous close of ₹455.00. The stock’s 52-week high is ₹622.05, while the low is ₹393.60, indicating a wide trading range and volatility over the past year. The company’s market cap grade is 4, reflecting its micro-cap status and associated liquidity and risk considerations.
The recent price softness, combined with valuation moderation, suggests that investors are recalibrating expectations amid sector headwinds and competitive pressures. The healthcare services sector, while generally defensive, has seen divergent performances among its constituents, with Prevest Denpro’s valuation adjustment signalling caution.
Investment Quality and Mojo Score Implications
Prevest Denpro’s Mojo Score currently stands at 31.0, categorised as Sell, down from a previous Hold rating. This downgrade reflects the combined impact of valuation pressures, price underperformance, and relative weakness compared to peers. The downgrade on 6 Nov 2025 was driven primarily by the shift in valuation grade from very expensive to expensive, signalling that the stock’s price no longer justifies its earnings and growth prospects at current levels.
Investors should note that while the company demonstrates strong operational metrics such as ROCE and ROE, the elevated multiples and subdued price momentum warrant a cautious stance. The stock’s PEG ratio of 1.48, while not excessive, is higher than many peers, indicating that growth expectations may be priced in more fully than warranted by fundamentals.
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Outlook and Investor Considerations
Given the current valuation profile and recent price trends, Prevest Denpro Ltd appears less attractive relative to its healthcare services peers. The downgrade to Sell reflects a cautious outlook, with investors advised to weigh the company’s strong capital efficiency against its stretched multiples and underwhelming price momentum.
While the company’s operational performance remains robust, the market’s re-rating suggests that expectations for growth and profitability may need to be tempered. Investors seeking exposure to the healthcare services sector might consider more attractively valued peers such as BPL or Raaj Medisafe, which offer lower P/E ratios and compelling valuation grades.
In summary, Prevest Denpro’s valuation adjustment from very expensive to expensive signals a shift in price attractiveness that warrants careful analysis. The stock’s current metrics and market performance suggest a need for prudence, especially in the context of broader sector dynamics and peer comparisons.
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