Is Hawa Engineers overvalued or undervalued?

As of 1 July 2025, Hawa Engineers has moved from an attractive to a very attractive valuation grade. The company is currently undervalued, with a PE ratio of 18.08, an EV to EBITDA of 9.48, and a PEG ratio of 0.34, indicating strong growth potential relative to its price. In comparison to its peers, Hawa Engineers stands out favorably against Thermax, which has a much higher PE ratio of 63.16, and BEML Ltd, with a PE of 63.08, both categorized as expensive.
Despite recent stock performance showing a year-to-date decline of 37.33% compared to a 7.11% gain in the Sensex, the fundamental ratios suggest that Hawa Engineers is well-positioned for future growth. The company's ROCE is 17.14%, and ROE is 15.09%, further supporting its undervaluation status in the industrial manufacturing sector.