Is Havells India overvalued or undervalued?

As of 1 October 2025, the valuation grade for Havells India 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 65.95, an EV to EBITDA ratio of 43.42, and a PEG ratio of 46.10. In comparison to its peers, Polycab India is considered very expensive with a PE of 49.95, while R R Kabel is attractive with a PE of 42.62, highlighting the relative positioning of Havells within the industry. Despite the recent downturn in stock performance, with a year-to-date return of -11.32% compared to the Sensex's 3.64%, Havells India maintains strong operational metrics, including a ROCE of 32.87% and an ROE of 17.69%. This suggests that while the stock may be facing short-term challenges, its underlying financial health remains robust, supporting the conclusion that it is fairly valued in the current market environment.