Shilp Gravures Ltd Valuation Shifts: Price Attractiveness Deteriorates Amid Market Pressure

Valuation Metrics and Recent Changes

As of early February 2026, Shilp Gravures trades at ₹183.40, down 0.86% from the previous close of ₹185.00. The stock has experienced a significant correction from its 52-week high of ₹330.95, now hovering just above its 52-week low of ₹180.20. This price movement has coincided with a re-evaluation of its valuation metrics by market analysts.

The company’s price-to-earnings (P/E) ratio currently stands at 13.38, a figure that, while lower than some peers, has contributed to the downgrade from a very expensive to an expensive valuation grade. The price-to-book value (P/BV) ratio is 1.09, indicating the stock is trading slightly above its book value but not excessively so. Other valuation multiples include an EV to EBIT of 13.09 and an EV to EBITDA of 6.99, both suggesting moderate valuation levels relative to earnings and cash flow.

Comparative Industry Analysis

When compared with peers in the Industrial Products sector, Shilp Gravures’ valuation appears more attractive than some but less so than others. For instance, companies like Mamata Machinery and Gala Precision Engineering are rated very expensive with P/E ratios above 22 and 30 respectively, while Bharat Wire and Concord Enviro are considered attractive with P/E ratios in the 16-17 range.

Shilp Gravures’ PEG ratio of 0.32 is notably low, which could imply undervaluation relative to earnings growth expectations. However, the company’s return on capital employed (ROCE) and return on equity (ROE) remain subdued at 5.50% and 2.74% respectively, reflecting modest profitability and operational efficiency.

Stock Performance Versus Market Benchmarks

The stock’s recent price performance has been underwhelming. Over the past week, Shilp Gravures declined by 6.05%, contrasting with a 0.90% gain in the Sensex. The one-month and year-to-date returns are also negative at -13.27% and -13.67%, respectively, while the Sensex posted losses of -2.84% and -3.46% over the same periods.

Longer-term returns tell a more positive story, with the stock delivering 87.05% over three years and 140.37% over five years, outperforming the Sensex’s 38.27% and 77.74% gains respectively. However, the one-year return remains a concern at -29.46%, especially against the Sensex’s 7.18% rise, highlighting recent volatility and investor caution.

Mojo Score and Rating Revision

Shilp Gravures’ MarketsMOJO score currently stands at 37.0, reflecting a cautious stance on the stock’s prospects. This score has contributed to the downgrade of the company’s mojo grade from Hold to Sell as of 17 Nov 2025. The market capitalisation grade remains low at 4, indicating a relatively small market cap that may contribute to liquidity concerns and higher volatility.

The downgrade reflects a combination of valuation concerns, subdued profitability metrics, and recent price underperformance. Investors should weigh these factors carefully against the company’s longer-term growth potential and sector dynamics.

Profitability and Dividend Yield Context

Shilp Gravures’ dividend yield is modest at 1.15%, which may appeal to income-focused investors but is not particularly compelling in the current low-yield environment. The company’s ROCE of 5.50% and ROE of 2.74% suggest limited capital efficiency and shareholder returns, which may be a factor in the cautious market sentiment.

These profitability metrics lag behind many peers in the Industrial Products sector, where stronger operational performance is often rewarded with higher valuations. The company’s EV to capital employed ratio of 1.13 and EV to sales of 0.83 further indicate moderate valuation relative to asset base and revenue generation.

Outlook and Investment Considerations

Given the current valuation shift and market conditions, Shilp Gravures appears to be in a phase of consolidation with mixed signals for investors. While the stock’s valuation is no longer at extreme levels, the downgrade to an expensive rating and the Sell mojo grade suggest caution.

Investors should monitor the company’s earnings trajectory, operational improvements, and sector trends closely. The subdued profitability ratios and recent price weakness highlight risks, but the stock’s attractive PEG ratio and longer-term outperformance relative to the Sensex may offer some upside potential if fundamentals improve.

Conclusion

Shilp Gravures Ltd’s recent valuation adjustment from very expensive to expensive reflects a recalibration of investor expectations amid a challenging price environment and modest profitability. While the stock’s longer-term returns have been impressive, recent underperformance and a downgrade to a Sell mojo grade underscore the need for caution.

Investors should consider the company’s relative valuation, operational metrics, and sector positioning carefully before making investment decisions. The current price level near the 52-week low may offer a value entry point for risk-tolerant investors, but the overall outlook remains guarded until clearer signs of earnings improvement emerge.

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