Is Harsha Engg Intl overvalued or undervalued?

As of 25 June 2025, Harsha Engg Intl's valuation grade has moved from attractive to fair, indicating a shift in market perception. The company is currently fairly valued, with a PE ratio of 30.74, an EV to EBITDA of 19.88, and a PEG ratio of 6.16. These figures suggest that while the company is not undervalued, it also does not appear to be significantly overvalued compared to its peers.
In comparison to its industry peers, Harsha Engg Intl's PE ratio is lower than that of Thermax, which stands at 64.62, and BEML Ltd, at 63.3, both of which are considered expensive. However, it is important to note that the company's EV to EBITDA is competitive, especially when compared to the likes of Elecon Engg Co, which has an EV to EBITDA of 25.34. Recent stock performance shows that Harsha Engg Intl has underperformed against the Sensex over the past year, with a return of -32.34% compared to the Sensex's 6.02%, reinforcing the notion that the stock may be fairly valued given its current market conditions.