Valuation Metrics and Recent Changes
As of 16 Feb 2026, Saint-Gobain Sekurit India Ltd trades at ₹101.20, slightly down from its previous close of ₹102.00, with a day’s range between ₹100.50 and ₹103.30. The stock’s 52-week high stands at ₹126.40, while the low is ₹95.45, indicating a moderate volatility range over the past year.
The company’s P/E ratio currently sits at 21.60, a figure that has contributed to its reclassification from 'very expensive' to 'expensive' in valuation terms. This P/E is notably lower than some peers such as Borosil Scientific, which trades at a P/E of 43.53, but higher than Empire Industries at 15.21, which is considered 'very attractive'. The price-to-book value ratio of Saint-Gobain Sekurit is 4.22, reinforcing its premium valuation relative to book equity.
Other valuation multiples include an EV/EBITDA of 15.70 and an EV/EBIT of 16.90, both indicating a relatively high enterprise value compared to earnings, consistent with the 'expensive' tag. The PEG ratio of 0.76 suggests that the stock’s price growth is somewhat justified by earnings growth prospects, although this remains below the ideal benchmark of 1.0, signalling moderate growth expectations.
Financial Performance and Returns
Saint-Gobain Sekurit’s return on capital employed (ROCE) is an impressive 98.91%, while return on equity (ROE) stands at 19.53%, both reflecting strong operational efficiency and profitability. The dividend yield is modest at 1.98%, which may be less attractive for income-focused investors but aligns with the company’s growth orientation.
Examining stock returns relative to the Sensex reveals mixed performance. Over the past week, the stock outperformed the benchmark with a 1.15% gain versus Sensex’s 1.14% decline. However, year-to-date, the stock has declined by 4.35%, slightly underperforming the Sensex’s 3.04% fall. Over a one-year horizon, the stock has underperformed significantly, with a 13.28% loss compared to the Sensex’s 8.52% gain. Longer-term returns over five and ten years remain positive but lag the benchmark, with 50.60% and 185.88% gains respectively, against Sensex’s 60.30% and 259.46%.
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Peer Comparison and Sector Context
Within the Auto Components & Equipments sector, Saint-Gobain Sekurit’s valuation stands out as expensive but not the most stretched. Borosil Scientific, another sector peer, trades at a significantly higher P/E of 43.53 and EV/EBITDA of 20.10, indicating a more aggressive valuation stance by the market. Conversely, Empire Industries and Haldyn Glass are rated as 'very attractive' with P/E ratios of 15.21 and 26.47 respectively, and EV/EBITDA multiples well below Saint-Gobain Sekurit’s.
Several other peers such as Jai Mata Glass, FGP, and Triveni Glass are classified as 'risky' due to loss-making operations or negative earnings multiples, highlighting Saint-Gobain Sekurit’s relative stability despite its premium valuation. Agarwal Toughened Glass, with a P/E of 11.3 and EV/EBITDA of 8.93, is considered more reasonably valued but may differ in scale and operational metrics.
The company’s Mojo Score of 37.0 and a downgrade from 'Hold' to 'Sell' on 6 Nov 2025 reflect a cautious stance by analysts, driven by valuation concerns and recent underperformance relative to the benchmark. The Market Cap Grade of 4 indicates a mid-sized market capitalisation, which may limit liquidity and institutional interest compared to larger auto component firms.
Implications for Investors
The shift from 'very expensive' to 'expensive' valuation suggests that while the stock remains priced at a premium, some moderation in multiples has occurred, potentially offering a more balanced entry point for investors. However, the downgrade in Mojo Grade to 'Sell' signals that the risk-reward profile is currently unfavourable, especially given the stock’s underperformance over the past year and the broader market volatility.
Investors should weigh the company’s strong profitability metrics, such as ROCE and ROE, against its stretched valuation and recent price weakness. The modest dividend yield may not compensate for valuation risk in the near term. Furthermore, the PEG ratio below 1.0 indicates that earnings growth expectations are moderate but may not fully justify the current price level.
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Historical Valuation Trends and Market Sentiment
Historically, Saint-Gobain Sekurit has traded at elevated multiples, reflecting its niche position in the auto components segment and strong operational metrics. The recent moderation in valuation grades from 'very expensive' to 'expensive' may be a response to broader market corrections and sector-specific challenges, including supply chain disruptions and fluctuating demand in the automotive industry.
The stock’s relative underperformance against the Sensex over the past year and muted year-to-date returns highlight investor caution. However, the outperformance in the short term (one week) suggests some tactical buying interest, possibly driven by valuation realignment or sector rotation.
Investors should monitor upcoming quarterly results and sector developments closely, as any improvement in earnings visibility or margin expansion could support a re-rating. Conversely, sustained pressure on margins or macroeconomic headwinds may further weigh on the stock’s premium valuation.
Conclusion
Saint-Gobain Sekurit India Ltd’s valuation adjustment from 'very expensive' to 'expensive' reflects a nuanced shift in market sentiment amid mixed financial performance and sector dynamics. While the company maintains robust profitability and operational efficiency, its premium multiples and recent downgrade to a 'Sell' rating caution investors to consider valuation risks carefully.
Comparisons with peers reveal that while Saint-Gobain Sekurit is not the most expensive stock in its sector, it remains priced above several attractive alternatives. Investors seeking exposure to the auto components space may benefit from evaluating these peers alongside Saint-Gobain Sekurit to optimise portfolio allocation based on valuation, growth prospects, and risk tolerance.
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