Taylormade Renewables Ltd Valuation Shifts Signal Expensive Terrain Amid Mixed Returns

Valuation Metrics Reflect Elevated Pricing

As of 17 Feb 2026, Taylormade Renewables trades at ₹111.35, up 5.00% from the previous close of ₹106.05. The stock’s 52-week range spans from ₹90.50 to ₹364.00, indicating considerable volatility over the past year. However, the recent valuation shift is primarily driven by its current P/E ratio of 29.88, which places it in the "expensive" category compared to its historical averages and peer group.

The price-to-book value stands at 1.54, a moderate premium but still above the levels that would be considered "very attractive" in the industrial manufacturing sector. Other valuation multiples such as EV/EBITDA at 22.85 and EV/EBIT at 30.52 further reinforce the elevated pricing, suggesting that investors are paying a premium for earnings and operating cash flow relative to the company’s enterprise value.

Comparative Analysis with Industry Peers

When benchmarked against peers, Taylormade Renewables’ valuation appears stretched. For instance, Mangal Electricals, a peer in the same sector, is rated as "very attractive" with a P/E of 14.97 and EV/EBITDA of 7.36, less than half Taylormade’s multiples. Prostarm Info, another comparable, is rated "fair" with a P/E of 31.29 and EV/EBITDA of 20.24, slightly higher on P/E but lower on EV/EBITDA, indicating Taylormade’s premium is more pronounced on cash flow metrics.

Several other peers such as Artemis Electricals and Kaycee Industries are classified as "very expensive," with P/E ratios exceeding 50, but these companies often carry different risk profiles or growth prospects. Taylormade’s valuation, therefore, sits in a challenging middle ground where it is expensive relative to some peers but not as richly priced as the highest-valued companies in the sector.

Financial Performance and Quality Metrics

Despite the premium valuation, Taylormade Renewables’ return on capital employed (ROCE) and return on equity (ROE) remain modest at 4.02% and 5.17% respectively. These figures suggest limited efficiency in generating returns from capital and shareholder equity, which may not fully justify the elevated multiples.

The company currently does not offer a dividend yield, which may deter income-focused investors. Its PEG ratio stands at zero, indicating either a lack of meaningful earnings growth projections or an absence of consensus estimates, adding to the valuation uncertainty.

Stock Price Performance Versus Sensex

Examining the stock’s recent returns relative to the benchmark Sensex reveals a mixed picture. Over the past week, Taylormade Renewables outperformed the Sensex with a 7.74% gain compared to the index’s 0.94% decline. The one-month return also shows a modest 2.25% gain versus a 0.35% drop in the Sensex.

However, longer-term performance is less encouraging. Year-to-date, the stock has declined 3.8%, slightly worse than the Sensex’s 2.28% fall. Over one year, the stock has plummeted 53.4%, starkly contrasting with the Sensex’s 9.66% gain. Even over three years, Taylormade Renewables has underperformed, returning -3.34% against the Sensex’s 35.81% rise.

Interestingly, the five-year return is an outlier, with an extraordinary 1,293.62% gain, vastly outperforming the Sensex’s 59.83%. This suggests that the stock experienced a significant rally in the past but has since faced considerable correction and volatility.

Mojo Score and Rating Update

MarketsMOJO’s latest assessment assigns Taylormade Renewables a Mojo Score of 28.0, categorising it as a "Strong Sell." This is a downgrade from the previous "Sell" rating as of 16 Feb 2026, reflecting deteriorating fundamentals and valuation concerns. The Market Cap Grade remains low at 4, indicating limited market capitalisation strength relative to peers.

The downgrade is consistent with the shift in valuation from "very attractive" to "expensive," signalling caution for investors considering new positions or holding existing stakes.

Implications for Investors

The transition of Taylormade Renewables’ valuation from attractive to expensive warrants a cautious approach. While the stock has demonstrated resilience in short-term price movements, its stretched multiples relative to earnings and book value, combined with modest returns on capital, suggest limited upside potential at current levels.

Investors should weigh the company’s historical outperformance over five years against recent underperformance and valuation concerns. The lack of dividend yield and subdued profitability metrics further complicate the investment case.

Comparisons with peers reveal that more attractively valued alternatives exist within the industrial manufacturing sector, some offering better returns on capital and lower risk profiles. The downgrade to a "Strong Sell" rating by MarketsMOJO underscores the need for investors to reassess their exposure and consider reallocating capital to stocks with more favourable valuations and fundamentals.

Outlook and Market Context

Given the current market environment and sector dynamics, Taylormade Renewables faces headwinds in justifying its premium valuation. The industrial manufacturing sector is experiencing mixed growth signals, and companies with stronger operational metrics and lower valuations are likely to attract greater investor interest.

Until Taylormade Renewables can demonstrate improved profitability, higher returns on capital, or clearer growth prospects, its elevated valuation multiples may remain a deterrent for value-conscious investors.

Summary

In summary, Taylormade Renewables Ltd’s valuation parameters have shifted markedly, with P/E and P/BV ratios rising to levels that classify the stock as expensive relative to its history and peers. Despite short-term price gains, the company’s modest profitability and downgraded rating suggest caution. Investors should carefully evaluate the risk-reward profile and consider alternative opportunities within the industrial manufacturing sector.

Unlock special upgrade rates for a limited period. Start Saving Now →