Is Alphalogic Indu overvalued or undervalued?

As of 10 October 2025, Alphalogic Indu's valuation grade has moved from fair to attractive, indicating a positive shift in its market perception. The company is currently considered undervalued, with a PE ratio of 42.57, an EV to EBIT ratio of 41.27, and a ROCE of 13.37%. In comparison to its peers, Alphalogic Indu's PE ratio is significantly lower than Rail Vikas, which stands at 59.85, and Tube Investments at 94.31, both categorized as expensive.
Despite recent stock performance showing a year-to-date decline of 54.05% compared to a 5.58% gain in the Sensex, the attractive valuation suggests potential for recovery. The PEG ratio of 1.72 further supports the notion that the stock may be undervalued relative to its growth prospects, especially when compared to peers like Triveni Turbine, which has a PEG of 2.65. Overall, Alphalogic Indu presents a compelling investment opportunity given its attractive valuation metrics amidst a challenging market backdrop.