Is Holmarc Opto overvalued or undervalued?

As of 27 October 2025, Holmarc Opto's valuation grade 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 29.09, an EV to EBITDA of 17.27, and a PEG ratio of 3.22. These metrics suggest that while the company is not undervalued, it is also not excessively priced compared to its earnings growth potential.
In comparison to its peers, Holmarc Opto's valuation appears reasonable, especially when contrasted with Rail Vikas, which has a PE ratio of 57.73, and Tube Investments, which stands at 93.55. The return on capital employed (ROCE) for Holmarc is notably high at 24.89%, further supporting its fair valuation. Despite recent underperformance relative to the Sensex, with a year-to-date decline of 40.52% compared to the Sensex's gain of 9.82%, the current valuation reflects a more balanced outlook for potential investors.