Is Alfa Transformer overvalued or undervalued?

As of 17 November 2025, Alfa Transformer has moved from an attractive to a fair valuation grade. The company appears to be overvalued based on its current financial ratios, which include a PE ratio of -66.63, an EV to EBITDA of 35.83, and a ROE of -3.17%. These figures indicate significant financial distress and a lack of profitability compared to its peers.
In comparison to notable competitors, Larsen & Toubro, which is rated attractive, has a PE ratio of 34.55 and an EV to EBITDA of 18.21, showcasing a much healthier financial position. Other peers like CG Power & Ind are deemed very expensive with a PE of 110.51, further highlighting Alfa's unfavorable standing in the market. Additionally, the company's recent stock performance has been poor, with a year-to-date return of -56.44% compared to the Sensex's gain of 8.72%, reinforcing the notion that Alfa Transformer is currently overvalued.