Valuation Metrics Reflecting a More Balanced Outlook
As of 26 February 2026, Refex Industries Ltd trades at ₹229.60, down 2.65% from the previous close of ₹235.85. The stock’s 52-week range spans from ₹209.80 to ₹534.00, indicating significant volatility over the past year. The company’s P/E ratio currently stands at 17.34, a marked improvement from previous levels that had positioned it as expensive relative to peers. This shift to a fair valuation grade is further supported by a P/BV of 2.50, which aligns more closely with industry averages and signals a more reasonable price relative to the company’s net asset value.
Other valuation multiples such as EV/EBITDA at 11.26 and EV/EBIT at 12.52 also suggest that the stock is trading at levels that better reflect its earnings and operational cash flow generation capabilities. The PEG ratio of 0.89 indicates that the stock is reasonably priced relative to its earnings growth prospects, which is a positive sign for value-conscious investors.
Comparative Analysis with Industry Peers
When compared to Ellen Industrial Gases, a peer in the Other Chemical products industry, Refex Industries appears significantly more attractively valued. Ellen Industrial Gases is classified as very expensive with a P/E ratio of 39.74 and an EV/EBITDA multiple of 29.67, highlighting the premium investors are willing to pay for its growth or stability. In contrast, Refex’s fair valuation status suggests it may offer better risk-adjusted returns, especially given its robust return on capital employed (ROCE) of 18.94% and return on equity (ROE) of 14.13%.
Stock Performance and Market Context
Despite the improved valuation, Refex Industries has faced a challenging market environment. The stock’s year-to-date return is -11.71%, underperforming the Sensex’s -3.46% over the same period. Over the past year, the stock has declined sharply by 43.03%, contrasting with the Sensex’s positive 10.29% gain. However, the longer-term performance remains impressive, with a three-year return of 329.32% and a ten-year return exceeding 16,230%, underscoring the company’s historical capacity to generate substantial shareholder value.
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Mojo Score and Grade Evolution
Refex Industries currently holds a Mojo Score of 40.0, which corresponds to a Mojo Grade of Sell. This represents an upgrade from its previous Strong Sell rating as of 11 August 2025. The improvement in grade reflects the company’s better valuation metrics and operational performance, though the overall score still advises caution. The Market Cap Grade remains modest at 3, indicating a mid-sized market capitalisation that may limit liquidity and institutional interest compared to larger peers.
Dividend Yield and Profitability Metrics
The company’s dividend yield is relatively low at 0.21%, which may deter income-focused investors. However, profitability ratios such as ROCE at 18.94% and ROE at 14.13% demonstrate efficient capital utilisation and reasonable returns on equity, supporting the case for a fair valuation. These metrics suggest that while the company is not currently a high-yield dividend payer, it maintains solid fundamentals that could underpin future growth and shareholder returns.
Price Volatility and Trading Range
Refex Industries’ price volatility is evident from its 52-week high of ₹534.00 and low of ₹209.80. The current trading price near the lower end of this range may attract value investors seeking entry points in cyclical or turnaround stocks. Intraday trading on 26 February 2026 saw the stock fluctuate between ₹226.60 and ₹236.60, reflecting moderate volatility but no extreme price swings.
Outlook and Investment Considerations
Investors considering Refex Industries should weigh the improved valuation against the backdrop of recent underperformance and sector challenges. The fair valuation grade and reasonable multiples suggest the stock is no longer overpriced, potentially offering a more attractive risk-reward profile. However, the Sell Mojo Grade and recent price declines caution that recovery may be gradual and contingent on broader market conditions and company-specific catalysts.
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Conclusion: Valuation Reset Offers Opportunity Amid Risks
Refex Industries Ltd’s transition from an expensive to a fair valuation grade marks a significant development for investors analysing the Other Chemical products sector. The company’s improved P/E and P/BV ratios, alongside solid profitability metrics, suggest that the stock is now priced more attractively relative to its historical levels and peers. Nevertheless, the recent negative returns and a cautious Mojo Grade of Sell highlight ongoing risks that investors must consider.
For those with a medium to long-term horizon, Refex Industries may represent a value opportunity, particularly if the company can leverage its operational strengths to navigate sector headwinds. However, prudent investors should monitor market conditions and peer performance closely to ensure alignment with their risk tolerance and investment objectives.
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