Is Balmer Lawrie overvalued or undervalued?

As of 1 October 2025, Balmer Lawrie's valuation grade has moved from attractive to very attractive, indicating a positive shift in its market perception. The company is currently assessed as undervalued based on its financial ratios, which include a PE ratio of 13.29, an EV to EBITDA of 9.80, and a dividend yield of 4.03%. These figures suggest that the stock is trading at a reasonable price relative to its earnings and cash flow generation capabilities.
In comparison to its peers, Balmer Lawrie stands out as more attractively priced, especially when contrasted with Container Corporation, which has a PE ratio of 30.33, and Aegis Logistics, with a PE of 41.63. While Balmer Lawrie has shown a decline in stock performance over the past year, it has outperformed the Sensex over a three-year period, highlighting its potential for recovery and growth. Overall, the company's solid ROCE of 15.61% and ROE of 13.51% further support the conclusion that it is undervalued in the current market.