Is Godawari Power overvalued or undervalued?

As of 21 August 2025, the valuation grade for Godawari Power has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE Ratio of 20.19, an EV to EBITDA of 13.12, and a Price to Book Value of 3.05, which suggest that the stock is priced higher relative to its earnings and book value compared to peers.
In comparison to its industry peers, Godawari Power's PE ratio is significantly lower than that of JSW Steel, which stands at 51.16, and Tata Steel, which has a PE of 41.49. This indicates that while Godawari Power is priced at a premium, it does not offer the same growth prospects as these competitors. Additionally, the company's recent stock performance has outpaced the Sensex, with a year-to-date return of 10.16% compared to the Sensex's 4.94%, reinforcing the notion of overvaluation in light of its current financial ratios.