Is Godawari Power overvalued or undervalued?

As of 21 May 2025, the valuation grade for Godawari Power has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 15.52, an EV to EBITDA ratio of 10.23, and a ROE of 16.53%. In comparison to its peers, JSW Steel has a significantly higher PE ratio of 64.98, while Tata Steel, rated as attractive, shows a PE of 51.92, highlighting Godawari Power's relative valuation appeal within the industry.
Despite recent underperformance, with a YTD return of -6.71% compared to the Sensex's 5.66%, Godawari Power's strong fundamentals, including a ROCE of 22.97%, suggest it is positioned well for future growth. The company's valuation metrics indicate it is neither undervalued nor overvalued, aligning it closely with its peers in the iron and steel sector.