Is Elpro Internatio overvalued or undervalued?

As of 17 October 2025, the valuation grade for Elpro International has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company is still considered overvalued based on its current metrics. The price-to-earnings (PE) ratio stands at 15.67, while the price-to-book value is notably low at 0.71, suggesting that the stock may not be adequately reflecting its underlying asset value. Additionally, the EV to EBITDA ratio is 21.41, which is relatively high compared to industry standards.
In comparison to its peers, Elpro International's PE ratio is significantly lower than that of DLF and Lodha Developers, which have PE ratios of 39.72 and 39.97, respectively. This indicates that while Elpro is less expensive on a relative basis, it still does not justify the current valuation given its low return on equity (ROE) of 3.25% and return on capital employed (ROCE) of 3.22%. Furthermore, the stock has underperformed against the Sensex, with a year-to-date return of -25.41% compared to the Sensex's gain of 7.44%, reinforcing the notion that Elpro International is overvalued at its current price of 85.89.