Shish Industries Ltd Valuation Shifts to Very Expensive Amid Mixed Market Returns

Valuation Metrics Signal Elevated Pricing

As of 19 Feb 2026, Shish Industries Ltd's price-to-earnings (P/E) ratio stands at a striking 65.40, a significant increase that places it well above the industry average and peer group. This elevated P/E ratio contrasts sharply with competitors such as Apollo Pipes and Rajoo Engineers, whose P/E ratios are 44.79 and 19.00 respectively, underscoring Shish Industries' premium valuation status.

Similarly, the price-to-book value (P/BV) ratio for Shish Industries has risen to 5.01, reinforcing the perception of an expensive stock. This figure is notably higher than the sector median, where companies like Arrow Greentech and Premier Polyfilm trade at P/BVs of 1.3 to 2.5 levels, indicating that investors are paying a substantial premium for Shish Industries’ book value.

Enterprise value to EBIT (EV/EBIT) and EV to EBITDA ratios further highlight the stretched valuation, with Shish Industries at 71.05 and 42.35 respectively. These multiples are considerably above peers such as Tarsons Products (EV/EBIT 11.8) and Rajoo Engineers (EV/EBIT 13.38), suggesting that the market expects superior earnings growth or operational efficiency from Shish Industries, which may be optimistic given current fundamentals.

Operational Performance and Returns

Despite the lofty valuation, Shish Industries’ return on capital employed (ROCE) and return on equity (ROE) remain modest at 6.00% and 8.46% respectively. These returns are below what might be expected for a stock trading at such a premium, raising questions about the sustainability of its current price levels. Investors typically seek higher returns to justify elevated multiples, and the current figures suggest a potential disconnect.

Dividend yield data is unavailable, which may further dampen the stock’s appeal for income-focused investors. The absence of dividend payouts could be a factor in the stock’s valuation, as investors may be pricing in growth rather than income generation.

Price Performance and Market Context

Shish Industries’ share price closed at ₹13.92 on 19 Feb 2026, up 4.98% from the previous close of ₹13.26. The stock has experienced a volatile trajectory over the past year, with a 52-week high of ₹19.14 and a low of ₹7.10. While the short-term price action shows some recovery, the year-to-date (YTD) return is negative at -24.35%, underperforming the Sensex’s modest decline of -1.74% over the same period.

However, the longer-term returns paint a more favourable picture. Over one year, Shish Industries has delivered a 60.0% return, significantly outperforming the Sensex’s 10.22%. Over three and five years, the stock’s returns are even more impressive at 108.92% and a staggering 1,310.76% respectively, dwarfing the Sensex’s 37.26% and 63.15% gains. This exceptional long-term performance likely contributes to the elevated valuation multiples, as investors price in sustained growth prospects.

Comparative Valuation: Peers and Sector Benchmarks

When benchmarked against its peers in the Plastic Products - Industrial sector, Shish Industries’ valuation stands out as markedly stretched. Apollo Pipes, another expensive stock, trades at a P/E of 44.79 and EV/EBITDA of 15.2, while Rajoo Engineers, also expensive, has a P/E of 19.00 and EV/EBITDA of 13.38. Tarsons Products and Commercial Synbags, rated fair, trade at P/E ratios of 49.84 and 27.23 respectively, with EV/EBITDA multiples well below Shish Industries’ levels.

More attractively valued companies such as Ester Industries and Premier Polyfilm offer P/E ratios below 20 and EV/EBITDA multiples in the 12 to 17 range, highlighting the premium investors pay for Shish Industries. This premium is not fully supported by operational metrics, as the company’s ROCE and ROE lag behind what might be expected for such valuation levels.

Moreover, the PEG ratio for Shish Industries is reported as 0.00, which may indicate either a lack of earnings growth data or an anomaly in calculation. In contrast, peers like Rajoo Engineers and Premier Polyfilm have PEG ratios of 0.21 and 2.91 respectively, suggesting more balanced valuations relative to growth expectations.

Mojo Score and Rating Upgrade

MarketsMOJO has upgraded Shish Industries’ Mojo Grade from Sell to Hold as of 05 Dec 2025, reflecting a cautious optimism amid the valuation concerns. The current Mojo Score stands at 50.0, indicating a neutral stance. The Market Cap Grade is 4, signalling a mid-sized market capitalisation that may limit liquidity and institutional interest compared to larger peers.

This upgrade suggests that while the stock’s valuation is stretched, there remains potential for price appreciation if operational performance improves or if market sentiment shifts favourably. Investors should weigh the elevated multiples against the company’s growth prospects and sector dynamics before making investment decisions.

Investor Takeaway: Balancing Growth and Valuation Risks

Shish Industries Ltd’s valuation shift to a very expensive category reflects strong investor confidence in its long-term growth trajectory, supported by exceptional multi-year returns. However, the current premium multiples relative to peers and modest return ratios suggest caution. The stock’s elevated P/E and P/BV ratios imply that much of the anticipated growth is already priced in, leaving limited margin for error.

Investors should carefully monitor upcoming earnings reports and sector developments to assess whether Shish Industries can justify its valuation through improved profitability and capital efficiency. Given the Hold rating and Mojo Score of 50.0, a balanced approach is advisable, considering alternative opportunities within the sector that offer more attractive valuations and comparable growth potential.

In summary, while Shish Industries remains a noteworthy contender in the Plastic Products - Industrial sector, its current price attractiveness has diminished due to stretched valuation parameters. A prudent investor would weigh these factors alongside broader market conditions and individual risk tolerance before committing fresh capital.

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