Is BPL overvalued or undervalued?

As of 6 October 2025, BPL's valuation grade has moved from fair to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued. Key ratios supporting this assessment include a PE Ratio of 6.95, a Price to Book Value of 1.55, and an EV to EBITDA of 36.74. In comparison to its peers, BPL stands out with a much lower PE ratio than Poly Medicure at 53.67 and Blue Jet Health at 33.01, both of which are categorized as very expensive.
Despite recent stock performance showing a decline of 29.74% over the past year compared to a modest 0.12% return of the Sensex, BPL's strong ROE of 22.29% and a PEG Ratio of 0.06 suggest that the company is well-positioned for future growth. This combination of low valuation ratios and strong returns on equity reinforces the conclusion that BPL is undervalued in the current market environment.