Is Bharat Bijlee overvalued or undervalued?

As of 17 October 2025, Bharat Bijlee's valuation grade has moved from attractive to very attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, especially when compared to its peers. Key ratios include a PE ratio of 23.95, an EV to EBITDA ratio of 12.10, and a Price to Book Value of just 0.16, which suggests that the stock is trading at a significant discount relative to its book value.
In comparison to its peers, Bharat Bijlee's PE ratio is notably lower than that of Larsen & Toubro, which stands at 34.06, and significantly lower than CG Power & Ind, which is at 119.04. This disparity highlights Bharat Bijlee's potential for growth and value appreciation. Despite recent stock performance trailing behind the Sensex over the past year, with a decline of 36.46% compared to the Sensex's 3.64% gain, the long-term outlook remains strong, as evidenced by a remarkable 928.48% return over the last decade.