Sanghvi Movers Ltd Valuation Turns Very Attractive Amid Market Pressure

Valuation Metrics Reflect Enhanced Price Appeal

As of 17 Feb 2026, Sanghvi Movers trades at ₹282.55, down 2.15% from the previous close of ₹288.75. The stock’s 52-week range spans from ₹205.00 to ₹412.90, indicating significant volatility over the past year. The company’s current P/E ratio stands at 13.95, a marked improvement from the previous 18.49, signalling a more attractive entry point for investors. This contraction in P/E ratio suggests the market is pricing in either a moderation in earnings growth expectations or a reassessment of risk, but it undeniably enhances the stock’s valuation appeal.

Complementing the P/E ratio, the price-to-book value has settled at 2.02, which is reasonable for an automobile sector company with a return on equity (ROE) of 14.32%. This P/BV level is below many peers, indicating that the stock is trading at a discount to its net asset value relative to competitors. The enterprise value to EBITDA (EV/EBITDA) ratio of 7.18 further underscores the stock’s valuation attractiveness, especially when compared to industry heavyweights like AIA Engineering and MTAR Technologies, which trade at EV/EBITDA multiples exceeding 26 and 80 respectively.

Comparative Peer Analysis Highlights Relative Value

When benchmarked against its peer group, Sanghvi Movers emerges as a compelling value proposition. While companies such as AIA Engineering and Sansera Engineering are classified as very expensive with P/E ratios above 30 and EV/EBITDA multiples in the mid-20s, Sanghvi’s valuation metrics are significantly more conservative. Craftsman Auto and Ircon International, rated as fair in valuation, trade at P/E ratios of 52.15 and 23.41 respectively, well above Sanghvi’s current multiple.

This relative undervaluation is further emphasised by the company’s PEG ratio of zero, indicating either a lack of consensus on growth projections or a conservative earnings outlook. However, the company’s return on capital employed (ROCE) of 16.51% suggests operational efficiency and profitability that could support future earnings growth, potentially justifying a re-rating if growth prospects materialise.

Stock Performance Versus Market Benchmarks

Despite the improved valuation, Sanghvi Movers has underperformed the broader market in the short term. Over the past week, the stock declined by 6.76%, compared to a modest 0.94% drop in the Sensex. The one-month return is even more stark, with the stock down 9.64% versus a 0.35% gain in the benchmark index. Year-to-date, the stock has fallen 18.34%, significantly lagging the Sensex’s 2.28% decline.

However, the longer-term performance tells a different story. Over one year, Sanghvi Movers has delivered a 14.28% return, outpacing the Sensex’s 9.66%. Over three and five years, the stock’s cumulative returns of 51.66% and 425.92% respectively dwarf the Sensex’s 35.81% and 59.83% gains. This disparity highlights the stock’s potential as a long-term wealth creator despite recent volatility.

Financial Health and Profitability Metrics

The company’s financial metrics support the valuation upgrade. Sanghvi Movers boasts a dividend yield of 0.71%, modest but consistent, which may appeal to income-focused investors. Its ROCE of 16.51% and ROE of 14.32% indicate efficient capital utilisation and solid profitability, key factors underpinning sustainable earnings growth.

Enterprise value to capital employed (EV/CE) at 1.86 and EV to sales at 2.71 further reflect a balanced valuation relative to the company’s asset base and revenue generation capacity. These metrics suggest that the market is beginning to recognise the intrinsic value embedded in Sanghvi’s operations, especially when contrasted with more richly valued peers.

Mojo Score and Market Sentiment

Sanghvi Movers currently holds a Mojo Score of 31.0 with a Mojo Grade of Sell, upgraded from a previous Strong Sell rating on 15 Feb 2026. This upgrade reflects a modest improvement in market sentiment and valuation attractiveness, though caution remains warranted given the stock’s recent price weakness and sector headwinds.

The company’s market capitalisation grade is rated 3, indicating a mid-tier market cap within its sector. This positioning may limit liquidity but also offers potential for re-rating if operational performance improves or sector dynamics turn favourable.

Conclusion: Valuation Shift Offers Opportunity Amid Volatility

The transition of Sanghvi Movers Ltd’s valuation from fair to very attractive is a significant development for investors seeking value in the automobile sector. The contraction in P/E and P/BV ratios, combined with solid profitability metrics and a favourable long-term return profile, suggests the stock is increasingly priced to reflect its intrinsic worth.

However, the recent underperformance relative to the Sensex and the modest Mojo Score caution investors to balance optimism with prudence. The stock’s valuation improvement may provide a foundation for future gains, but investors should monitor earnings trends and sector conditions closely before committing fresh capital.

Overall, Sanghvi Movers presents a compelling case for value-oriented investors willing to navigate short-term volatility in pursuit of longer-term capital appreciation.

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