Is Airo Lam overvalued or undervalued?

As of 1 October 2025, Airo Lam has moved from a fair to an attractive valuation grade. The company appears to be undervalued, particularly when considering its PE ratio of 78.56, an EV to EBITDA of 7.73, and a Price to Book Value of 2.24. In comparison, peer companies such as V-Guard Industries, which has a PE of 56.1 and an EV to EBITDA of 33.78, and Bata India, with a PE of 69.3 and an EV to EBITDA of 21.42, suggest that Airo Lam's valuation may not be as excessive as it seems.
Despite a challenging year with a YTD return of -15.24% compared to the Sensex's 5.04%, Airo Lam's strong position within its industry, reflected in its attractive valuation grade, indicates potential for recovery and growth. The company's ROCE of 4.84% and ROE of 3.31% further support the notion that it is currently undervalued relative to its peers.