Shivagrico Implements Ltd Valuation Turns Very Attractive Amid Market Downturn

Recent Market Performance and Price Movement

The stock of Shivagrico Implements Ltd, a player in the Industrial Manufacturing sector, has experienced a steep correction in recent trading sessions. On 17 Feb 2026, the share price closed at ₹22.76, down 14.66% from the previous close of ₹26.67. The intraday range saw a high of ₹24.75 and a low of ₹22.65, with the 52-week price band ranging between ₹21.00 and ₹36.22. This decline contrasts sharply with the broader market, where the Sensex has shown modest gains over comparable periods.

Over the past week, Shivagrico’s stock has fallen by 15.17%, while the Sensex declined only 0.94%. The one-month and year-to-date returns for the stock stand at -12.50% and -12.83% respectively, compared to Sensex returns of -0.35% and -2.28%. The one-year performance is particularly stark, with the stock down 26.53% against a Sensex gain of 9.66%. However, the longer-term view remains positive, with five-year returns of 312.32% far outpacing the Sensex’s 59.83%.

Valuation Metrics Signal Improved Price Attractiveness

Despite the recent price weakness, Shivagrico Implements Ltd’s valuation profile has improved markedly. The company’s price-to-earnings (P/E) ratio currently stands at 23.77, a level that is considered very attractive relative to its historical averages and peer group. This is a notable shift from its previous valuation grade of “attractive” to “very attractive” as of 10 Feb 2026.

Similarly, the price-to-book value (P/BV) ratio is at 1.42, indicating the stock is trading close to its book value, which is appealing for value-focused investors. Other enterprise value multiples such as EV/EBITDA at 8.35 and EV/EBIT at 15.37 further reinforce the stock’s relative cheapness compared to industry benchmarks.

The PEG ratio, a measure of valuation relative to earnings growth, is exceptionally low at 0.10, suggesting the stock is undervalued relative to its growth prospects. This contrasts with peers such as A B Infrabuild, which trades at a P/E of 67.58 and EV/EBITDA of 36.44, categorised as very expensive, and Manaksia Coated, with a P/E of 31 and EV/EBITDA of 16.3, rated attractive but less compelling than Shivagrico.

Comparative Industry Position and Financial Quality

Within the Industrial Manufacturing sector, Shivagrico Implements Ltd’s valuation stands out as very attractive when compared to peers. For instance, BMW Industries is rated very attractive with a P/E of 12.29 and EV/EBITDA of 6.98, but other companies such as Permanent Magnet and Yuken India are classified as very expensive or fair, with P/E ratios exceeding 50 and EV/EBITDA multiples above 20.

Financially, Shivagrico’s return on capital employed (ROCE) is 6.93%, and return on equity (ROE) is 5.99%, which are modest but stable figures in the context of the sector’s cyclical nature. The company’s enterprise value to capital employed ratio is 1.14, and EV to sales is 0.57, indicating efficient capital utilisation relative to its valuation.

However, the absence of a dividend yield may deter income-focused investors, although the low PEG ratio suggests potential for earnings growth to drive future returns.

Mojo Score and Analyst Ratings Reflect Caution

Despite the improved valuation, Shivagrico Implements Ltd carries a Mojo Score of 26.0 and a Mojo Grade of Strong Sell, downgraded from Sell on 10 Feb 2026. This reflects concerns over the company’s fundamentals, momentum, and market sentiment. The market capitalisation grade is 4, indicating a relatively small market cap and associated liquidity risks.

The sharp price decline and negative short-term returns underscore the cautious stance of analysts and investors. The downgrade to Strong Sell suggests that while valuation metrics are attractive, other factors such as earnings quality, sector headwinds, or operational risks may be weighing on the stock.

Long-Term Performance and Investor Considerations

Looking beyond the near-term volatility, Shivagrico Implements Ltd has delivered impressive long-term returns. Over five years, the stock has surged by 312.32%, significantly outperforming the Sensex’s 59.83% gain. Even over ten years, the stock has appreciated by 38.95%, though this lags the Sensex’s 259.08% growth, reflecting periods of underperformance.

Investors considering Shivagrico must weigh the current valuation attractiveness against the company’s recent price weakness and analyst caution. The stock’s low PEG ratio and reasonable P/BV suggest value potential, but the Strong Sell rating and negative momentum caution against aggressive accumulation without further fundamental improvement.

Valuation Shifts and Market Implications

The transition of Shivagrico Implements Ltd’s valuation grade from attractive to very attractive is primarily driven by the sharp correction in its share price, which has brought key multiples down to levels that historically have signalled buying opportunities. The P/E ratio of 23.77 is below the sector median and well under the levels seen in recent years when the stock traded above ₹30.

Price-to-book value at 1.42 is near the lower end of the company’s historical range, suggesting the market is pricing in significant risk or uncertainty. Enterprise value multiples such as EV/EBITDA at 8.35 and EV/EBIT at 15.37 are also compelling relative to peers, many of which trade at multiples exceeding 20 or 30.

However, investors should be mindful that valuation alone does not guarantee a turnaround. The company’s operational performance, sector dynamics, and broader economic conditions will be critical in determining whether the current price levels represent a sustainable bottom or a temporary trough.

Conclusion: A Cautious Opportunity for Value Investors

Shivagrico Implements Ltd’s recent valuation improvement amid a steep price decline presents a complex picture for investors. While the stock now trades at very attractive multiples relative to its history and peers, the downgrade to a Strong Sell rating and weak short-term price momentum highlight ongoing risks.

Long-term investors with a tolerance for volatility may find the current valuation compelling, especially given the company’s solid five-year returns and reasonable capital efficiency metrics. Nonetheless, a thorough analysis of operational fundamentals and sector outlook is essential before committing capital.

In summary, Shivagrico Implements Ltd offers a potentially undervalued entry point within the Industrial Manufacturing sector, but caution is warranted given the mixed signals from market performance and analyst assessments.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →