Is Hawa Engineers overvalued or undervalued?

As of 2 April 2025, Hawa Engineers has moved from a very attractive to an attractive valuation grade. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 16.67, an EV to EBITDA of 8.86, and a PEG ratio of 0.31, all of which suggest a favorable valuation compared to its peers.
In comparison to its industry peers, Hawa Engineers stands out with a significantly lower PE ratio than companies like Thermax and BEML Ltd, which are both categorized as very expensive with PE ratios of 66.31 and 62.34, respectively. Additionally, Hawa's EV to EBITDA ratio of 8.86 is more attractive than the average ratios of its peers, reinforcing its undervaluation status. Despite recent underperformance against the Sensex, with a year-to-date return of -40.89% compared to the Sensex's 5.59%, the long-term growth potential remains strong, as evidenced by a 3-year return of 157.00%.