Is Hawa Engineers overvalued or undervalued?

As of 17 October 2025, Hawa Engineers has moved from an attractive to a very attractive valuation grade. The company is currently considered undervalued, with a PE ratio of 15.02, an EV to EBITDA ratio of 7.40, and a PEG ratio of 0.41, indicating strong growth potential relative to its price. Notably, the return on capital employed (ROCE) stands at 18.04%, and the return on equity (ROE) is at 13.62%, both of which are solid indicators of operational efficiency.
In comparison to its peers, Hawa Engineers maintains a favorable position against companies like Thermax, which has a PE ratio of 55.98 and an EV to EBITDA of 36.86, and BEML Ltd, with a PE ratio of 61.47 and an EV to EBITDA of 36.71. These comparisons highlight Hawa Engineers' relative undervaluation in the industrial manufacturing sector. Despite recent stock performance lagging behind the Sensex, particularly with a year-to-date return of -48.89% compared to the Sensex's 7.44%, the long-term growth potential remains compelling.