Is Hawa Engineers overvalued or undervalued?

As of 23 October 2025, Hawa Engineers' valuation grade has moved from very attractive to attractive, indicating a shift in market perception. The company is currently assessed as undervalued, particularly when considering its PE ratio of 15.93, EV to EBITDA of 7.79, and a PEG ratio of 0.43, which are significantly more favorable compared to its peers. For instance, Thermax has a PE ratio of 56.6 and an EV to EBITDA of 37.28, while BEML Ltd shows a PE ratio of 61.28, highlighting Hawa Engineers' relative valuation advantage.
Despite recent stock performance showing a year-to-date decline of 45.78% compared to a Sensex return of 8.21%, the company's strong ROCE of 18.04% and ROE of 13.62% suggest solid operational efficiency. Given these metrics and the favorable comparison to peers, Hawa Engineers appears to be undervalued in the current market landscape.