Is CLN Energy overvalued or undervalued?

As of 23 September 2025, CLN Energy's valuation grade has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued based on its strong performance metrics. Key ratios include a PE ratio of 44.54, an EV to EBITDA of 24.39, and a ROCE of 17.21%.
In comparison to its peers, CLN Energy's PE ratio is higher than Samvardhana Motherson's attractive PE of 34.59 but lower than Bosch's expensive PE of 52.43. The EV to EBITDA ratio of 24.39 positions CLN Energy favorably against Samvardhana Motherson's 12.60, suggesting it is more efficient in generating earnings relative to its enterprise value. Despite recent stock performance showing a decline of 5.99% over the past week compared to a slight drop in the Sensex, the overall valuation metrics point towards an attractive investment opportunity in the auto components and equipment sector.