Is Jainik Power overvalued or undervalued?

As of 17 September 2025, Jainik Power's valuation grade has moved from does not qualify to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued. Key ratios include a PE Ratio of 23.29, an EV to EBITDA of 16.35, and a ROE of 37.57%.
In comparison to its peers, Jainik Power's PE Ratio is notably lower than that of Polycab India, which stands at 49.83, and Havells India at 70.8, both classified as very expensive and expensive, respectively. Despite its strong ROCE of 34.25%, the high valuation grade suggests that the market may have priced in excessive growth expectations. Recent stock performance shows Jainik Power significantly outperformed the Sensex over the past week with a return of 36.3% compared to the Sensex's 1.43%, further emphasizing the disconnect between its current valuation and market fundamentals.