Is Bright Brothers overvalued or undervalued?

As of 25 April 2025, the valuation grade for Bright Brothers has moved from attractive to very attractive. The company is currently considered undervalued, particularly when compared to its peers. Key ratios include a PE ratio of 21.72, an EV to EBITDA of 7.82, and a PEG ratio of 0.08, indicating strong growth potential relative to its price.
In comparison to its peers, Bright Brothers stands out with a significantly lower PE ratio than Supreme Industries at 57.34 and Astral at 78.35, both categorized as very expensive. Additionally, Bright Brothers' EV to EBITDA ratio of 7.82 is more favorable compared to Finolex Industries at 24.37, which is considered expensive. Despite a recent dip in stock performance relative to the Sensex over the past week, the one-year return of 117.25% highlights the company's strong growth trajectory, reinforcing its undervalued status.