Shri Jagdamba Polymers Ltd Valuation Shifts Amid Market Pressure

Valuation Metrics Signal Improved Price Attractiveness

As of 17 Feb 2026, Shri Jagdamba Polymers trades at a P/E ratio of 12.03, a figure that positions it favourably within the packaging industry. This valuation is notably lower than some peers such as Shree Rama Multitech, which commands a P/E of 14.65, and Bluegod Entertainment, which is trading at a steep 35.2. The company’s P/BV stands at 1.74, indicating a moderate premium over book value but still within an attractive range for investors seeking value in the packaging sector.

Further valuation multiples reinforce this perspective. The enterprise value to EBITDA (EV/EBITDA) ratio is 8.68, which is competitive when compared to Everest Kanto’s 7.04 and Kanpur Plastipack’s 9.97. The EV to EBIT ratio of 10.25 also suggests that the stock is reasonably priced relative to its earnings before interest and tax, especially given the company’s robust return on capital employed (ROCE) of 22.41% and return on equity (ROE) of 14.45%.

Mojo Score and Grade Reflect Caution

Despite these valuation positives, Shri Jagdamba Polymers’ Mojo Score remains subdued at 34.0, with a recent downgrade in its Mojo Grade from Hold to Sell on 9 Feb 2026. This downgrade reflects concerns over the company’s near-term performance and market sentiment, particularly as the stock has declined 4.87% on the day of reporting and is down 7.56% year-to-date, underperforming the Sensex’s modest 2.28% decline over the same period.

The company’s market capitalisation grade is rated 4, indicating a micro-cap status, which often entails higher volatility and risk. This is further underscored by the stock’s 52-week trading range, with a high of ₹1,279.95 and a low of ₹590.20, highlighting significant price swings over the past year.

Comparative Analysis with Industry Peers

When benchmarked against its packaging sector peers, Shri Jagdamba Polymers’ valuation multiples present a mixed but generally attractive picture. Everest Kanto, rated as Fair, trades at a slightly lower P/E of 11.44 but has a lower EV/EBITDA of 7.04, suggesting a more conservative valuation. Kanpur Plastipack, also rated Attractive, has a P/E of 11.96 and a higher EV/EBITDA of 9.97, indicating a valuation range similar to Shri Jagdamba Polymers.

Conversely, companies like Shree Tirupati Balaji and Hitech Corporation, despite their Attractive and Very Attractive ratings respectively, trade at significantly higher P/E ratios of 21.31 and 54.37, reflecting either stronger growth expectations or market premiums for scale and quality. Bluegod Entertainment’s Very Expensive rating and P/E of 35.2 further highlight the valuation spectrum within the sector.

Shri Jagdamba Polymers’ PEG ratio of 0.85 suggests that the stock is undervalued relative to its earnings growth potential, a positive signal for value-oriented investors. This contrasts with some peers such as Everest Kanto (0.66) and Kanpur Plastipack (0.05), where the PEG ratios indicate either slower growth or market caution.

Stock Performance and Market Context

The stock’s recent price action has been under pressure, with a 4.87% decline on the day of reporting and a 1-month return of -4.62%, underperforming the Sensex’s -0.35% over the same period. Year-to-date, the stock is down 7.56%, while the Sensex has declined by 2.28%. Over longer horizons, the stock’s performance has been modest; a 5-year return of 13.25% pales in comparison to the Sensex’s 59.83%, and a 10-year return of 74.09% is significantly below the benchmark’s 259.08%.

These figures highlight the challenges Shri Jagdamba Polymers faces in delivering sustained outperformance, despite its attractive valuation. The packaging sector itself has been navigating supply chain disruptions and fluctuating raw material costs, factors that have weighed on margins and investor sentiment.

Financial Strength and Dividend Yield

Shri Jagdamba Polymers’ financial metrics reveal a company with solid capital efficiency but limited shareholder returns in the form of dividends. The ROCE of 22.41% and ROE of 14.45% indicate effective utilisation of capital and equity, which is encouraging for long-term investors. However, the dividend yield remains minimal at 0.12%, signalling that the company retains most earnings for reinvestment or debt servicing rather than distributing cash to shareholders.

Enterprise value to capital employed (EV/CE) at 1.81 and EV to sales at 1.19 further support the view that the company is reasonably valued relative to its asset base and revenue generation capacity. These ratios, combined with the PEG ratio below 1, suggest that the stock is priced attractively for investors willing to tolerate the inherent risks of a micro-cap in a cyclical sector.

Outlook and Investor Considerations

While Shri Jagdamba Polymers Ltd’s valuation has improved from very attractive to attractive, the downgrade in its Mojo Grade to Sell reflects caution warranted by recent price declines and sector headwinds. Investors should weigh the company’s solid capital returns and reasonable valuation against its underwhelming recent price performance and the broader packaging industry’s volatility.

Given the stock’s micro-cap status and the competitive landscape, potential investors may consider a measured approach, monitoring quarterly earnings and sector developments closely. The company’s valuation multiples suggest a margin of safety, but the limited dividend yield and recent negative momentum temper enthusiasm.

Comparative analysis with peers reveals that while Shri Jagdamba Polymers is attractively priced, there are other companies within the packaging sector and adjacent industries that may offer better risk-adjusted returns, especially for investors seeking growth or income.

Conclusion

Shri Jagdamba Polymers Ltd presents an intriguing valuation case with its P/E of 12.03 and P/BV of 1.74 signalling an attractive entry point relative to peers and historical levels. However, the recent downgrade in Mojo Grade to Sell and the stock’s underperformance relative to the Sensex highlight the need for caution. Investors should balance the company’s solid financial metrics and valuation appeal against sector challenges and market sentiment before committing capital.

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