Valuation Metrics and Recent Changes
As of 16 Feb 2026, Prevest Denpro's price-to-earnings (P/E) ratio stands at 27.53, a figure that, while still elevated, marks a slight moderation from previous levels that classified the stock as very expensive. The price-to-book value (P/BV) ratio is currently 4.68, reinforcing the premium valuation investors are paying relative to the company's net asset value. Other valuation multiples such as EV to EBIT (21.39) and EV to EBITDA (19.64) further underscore the stock's rich pricing in the context of its earnings and cash flow generation.
These valuation metrics have prompted a downgrade in the company's Mojo Grade to Sell, from a prior Hold rating on 6 Nov 2025. The Mojo Score now stands at 31.0, signalling caution for investors amid the stock's current pricing environment.
Comparative Analysis with Peers
When benchmarked against its healthcare services peers, Prevest Denpro's valuation appears less compelling. For instance, BPL, classified as 'Very Attractive,' trades at a P/E of 5.56 and an EV/EBITDA multiple of 45.58, indicating a lower earnings multiple but a higher cash flow multiple, suggesting differing capital structures or growth expectations. Similarly, Raaj Medisafe, also deemed 'Very Attractive,' has a P/E of 13.82 and EV/EBITDA of 13.94, both significantly lower than Prevest Denpro's ratios.
Other peers such as Nureca and Shree Pacetronix, while expensive, trade at P/E ratios of 25.72 and 26.09 respectively, slightly below Prevest Denpro's current multiple. This relative expensiveness is a key factor in the stock's downgraded rating and valuation grade shift.
Financial Performance and Returns
Despite the valuation concerns, Prevest Denpro exhibits strong operational metrics. The company’s return on capital employed (ROCE) is an impressive 52.16%, indicating efficient use of capital to generate profits. Return on equity (ROE) is also healthy at 16.98%, reflecting solid profitability for shareholders.
However, the stock's recent price performance has lagged broader market indices. Year-to-date, Prevest Denpro has declined by 8.44%, compared to a 3.04% gain in the Sensex. Over the past year, the stock has fallen 8.45%, while the Sensex has appreciated 8.52%. Longer-term returns over three years show a modest 34.01% gain for Prevest Denpro, slightly underperforming the Sensex's 36.73% rise.
Today's trading session saw the stock close at ₹450.00, down 2.42% from the previous close of ₹461.15. The intraday range was ₹433.50 to ₹455.90, with the 52-week high and low at ₹622.05 and ₹393.60 respectively, highlighting significant volatility within the past year.
Our current monthly pick, this Mid Cap from Automobile Two & Three Wheelers, survived rigorous evaluation against dozens of contenders. See why experts are backing this one!
- - Rigorous evaluation cleared
- - Expert-backed selection
- - Mid Cap conviction pick
Valuation Grade Transition and Market Implications
The transition in Prevest Denpro's valuation grade from 'very expensive' to 'expensive' suggests a subtle improvement in price attractiveness, yet the stock remains priced at a premium relative to its earnings and book value. This shift may reflect market adjustments to recent earnings reports, sector developments, or broader macroeconomic factors impacting healthcare services.
Investors should note that the PEG ratio of 1.48, while not excessively high, indicates that the stock's price is somewhat aligned with its earnings growth prospects. However, this is notably higher than several peers, such as BPL (0.03) and Raaj Medisafe (0.10), which may offer more attractive growth-to-price ratios.
Dividend yield remains modest at 0.22%, which may be less appealing for income-focused investors, especially when juxtaposed with the stock's elevated valuation multiples.
Sector and Market Context
The healthcare services sector continues to attract investor interest due to demographic trends and increasing healthcare expenditure. However, valuation discipline remains critical as some stocks in the sector trade at stretched multiples. Prevest Denpro's current valuation places it in the expensive category, demanding robust operational performance and growth to justify its premium.
Comparatively, several peers classified as 'Very Attractive' or 'Attractive' offer lower valuation multiples, potentially presenting better risk-reward profiles. This context likely influenced the downgrade in Prevest Denpro's Mojo Grade to Sell, signalling caution for investors considering exposure to this stock at current levels.
Prevest Denpro Ltd or something better? Our SwitchER feature analyzes this micro-cap Healthcare Services stock and recommends superior alternatives based on fundamentals, momentum, and value!
- - SwitchER analysis complete
- - Superior alternatives found
- - Multi-parameter evaluation
Investor Takeaways and Outlook
For investors evaluating Prevest Denpro, the recent valuation adjustments and downgrade in Mojo Grade warrant a cautious approach. While the company demonstrates strong operational efficiency, as evidenced by its ROCE and ROE figures, the premium multiples and underperformance relative to the Sensex over the past year suggest limited upside in the near term.
Potential investors should weigh the stock’s rich valuation against its growth prospects and consider peer alternatives with more attractive price-to-earnings and PEG ratios. The healthcare services sector remains promising, but selective stock picking is essential to optimise returns and manage risk.
In summary, Prevest Denpro’s shift from very expensive to expensive valuation status signals a modest improvement in price attractiveness, yet the stock remains a cautious proposition given its relative premium and recent price declines. Monitoring upcoming earnings releases and sector developments will be crucial for reassessing the stock’s investment merit.
Unlock special upgrade rates for a limited period. Start Saving Now →
