Regis Industries Ltd Valuation Shifts Signal Renewed Price Attractiveness Amid Market Challenges

Valuation Metrics Reflect Improved Price Attractiveness

Regis Industries currently trades at a P/E ratio of 42.79, a figure that, while elevated in absolute terms, is considered attractive relative to its historical valuation and peer group within the NBFC sector. The company’s P/BV ratio stands at 2.34, signalling a more reasonable price relative to its net asset value compared to previous periods when valuations were stretched. This shift is underscored by the MarketsMOJO valuation grade upgrade from 'fair' to 'attractive' as of 5 Feb 2026, reflecting a reassessment of the company’s price appeal amid broader market volatility.

Other valuation multiples such as EV/EBIT and EV/EBITDA remain high at 64.97, indicating that earnings before interest and taxes and EBITDA are currently low relative to enterprise value. However, the PEG ratio of 0.07 suggests that the stock is undervalued when factoring in expected earnings growth, a rare positive signal in the NBFC space where growth prospects are often uncertain.

Peer Comparison Highlights Relative Value

When compared with peers, Regis Industries stands out for its comparatively attractive valuation. For instance, Colab Platforms trades at a P/E of 790.72 and an EV/EBITDA of 1860.76, categorised as 'very expensive' by MarketsMOJO. Similarly, Meghna Infracon and Arunis Abode also carry steep valuations with P/E ratios exceeding 130 and 220 respectively. In contrast, Regis Industries’ valuation metrics are more moderate, positioning it favourably for investors seeking exposure to the NBFC sector without the premium pricing of some competitors.

Other companies such as Vardhman Holdings and Jindal Poly Investments also share an 'attractive' valuation tag, but Regis Industries’ PEG ratio is notably lower, indicating a potentially better risk-reward profile based on growth expectations. This peer context is crucial for investors aiming to allocate capital efficiently within the NBFC sector, where valuation disparities can be significant.

Financial Performance and Returns Contextualise Valuation

Despite the attractive valuation, Regis Industries’ financial performance remains subdued. The company’s return on capital employed (ROCE) is a modest 2.53%, while return on equity (ROE) stands at 5.48%, both figures reflecting operational challenges and limited profitability. These returns are below sector averages, which typically range higher for well-performing NBFCs, signalling caution for investors.

Share price performance has been weak over recent periods, with a 1-year return of -62.53% compared to the Sensex’s positive 6.66% gain. Year-to-date, the stock has declined by 10.32%, underperforming the benchmark index’s 1.65% fall. Even over a 3-year horizon, Regis Industries’ 50.32% return, while positive, trails the Sensex’s 37.76% gain, indicating some recovery but still lagging broader market momentum.

Current trading levels are near the 52-week low of ₹2.38, with the latest price at ₹2.52, down 3.45% on the day. The 52-week high of ₹8.25 underscores the significant correction the stock has undergone, which partly explains the improved valuation appeal as prices have adjusted downward.

Market Capitalisation and Quality Grades

Regis Industries holds a market cap grade of 4, reflecting its mid-tier capitalisation status within the NBFC sector. The company’s Mojo Score has deteriorated to 28.0, leading to a downgrade in Mojo Grade from 'Sell' to 'Strong Sell' as of 12 Nov 2025. This downgrade reflects concerns over the company’s financial health and market positioning despite the more attractive valuation metrics.

Investors should weigh these quality indicators carefully against the valuation improvement. While the stock appears cheaper on a relative basis, the underlying fundamentals and sector risks remain significant headwinds.

Sector Outlook and Investment Considerations

The NBFC sector continues to face regulatory scrutiny, liquidity constraints, and credit quality concerns, which have weighed on valuations and investor sentiment. Regis Industries’ improved valuation metrics may reflect market pricing in these risks, alongside the company’s subdued earnings and returns.

For investors, the key question is whether the current price attractiveness compensates adequately for the risks. The low PEG ratio suggests potential undervaluation relative to growth, but the weak ROCE and ROE, combined with a strong sell rating, counsel caution.

Investors with a higher risk tolerance and a long-term horizon may find value in Regis Industries as a turnaround candidate, particularly if the company can improve operational efficiency and capital utilisation. However, those seeking stable earnings and quality metrics might prefer peers with stronger fundamentals despite higher valuations.

Historical Valuation Context

Historically, Regis Industries traded at higher multiples during periods of stronger earnings growth and sector optimism. The current P/E of 42.79 is below peak levels but remains elevated compared to some NBFC peers, reflecting lingering concerns. The P/BV ratio of 2.34 is more aligned with historical averages, indicating that the stock price has corrected closer to book value, enhancing its appeal for value-oriented investors.

Comparing the EV to capital employed ratio of 2.35 with the EV to sales of 7.26 highlights the capital-intensive nature of the business and the premium investors place on sales growth potential. These metrics suggest that while the company is not cheap on an enterprise value basis, the market is pricing in expected improvements or sector recovery.

Overall, the valuation shift from fair to attractive is a significant development for Regis Industries, signalling a potential entry point for investors willing to navigate the NBFC sector’s complexities.

Conclusion

Regis Industries Ltd’s recent valuation grade upgrade to 'attractive' reflects a meaningful change in market perception, driven by a combination of share price correction and relative valuation improvements versus peers. Despite ongoing operational challenges and a strong sell rating, the company’s P/E and P/BV ratios now offer a more compelling entry point for investors focused on value within the NBFC sector.

However, the subdued returns on capital and equity, alongside sector headwinds, warrant a cautious approach. Investors should balance the improved valuation against fundamental risks and consider peer comparisons carefully before committing capital.

In sum, Regis Industries presents a nuanced investment case: an attractive valuation amid a challenging operating environment, suitable for investors with a higher risk appetite and a long-term perspective.

Unlock special upgrade rates for a limited period. Start Saving Now →