Is Bhansali Engg. overvalued or undervalued?

As of 9 October 2025, the valuation grade for Bhansali Engineering has moved from attractive to very attractive, indicating a significant positive shift in its perceived value. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 14.65, an EV to EBIT of 10.80, and a robust ROCE of 34.39%.
In comparison to its peers, Bhansali Engineering stands out with a much lower PE ratio than Solar Industries, which has a PE of 102.2, and Gujarat Fluorochemicals at 66.43. This suggests that Bhansali is trading at a discount relative to its more expensive counterparts in the specialty chemicals sector. Despite recent underperformance in stock returns compared to the Sensex, the company's strong fundamentals and attractive valuation metrics position it favorably for potential investors.