Is Baweja Studios L overvalued or undervalued?

As of 22 September 2025, Baweja Studios L has moved from a very attractive to an attractive valuation grade. The company is currently considered undervalued. Key ratios include a PE ratio of 11.57, an EV to EBITDA of 8.72, and a Price to Book Value of 0.92, which suggest that the stock is trading at a discount relative to its earnings and book value.
In comparison to peers, Baweja Studios L's PE ratio of 11.57 is significantly lower than Prime Focus, which has a PE ratio of 31.35, indicating that Baweja is more attractively priced despite its lower valuation grade. Additionally, PVR Inox, which is also classified as attractive, has an EV to EBITDA of 10.73, further highlighting Baweja's competitive positioning in the market. Despite recent stock performance lagging behind the Sensex, with a year-to-date return of -20.85% compared to the Sensex's 6.59%, the underlying valuation metrics suggest potential for recovery.