Is JP Power Ven. overvalued or undervalued?

As of 16 July 2025, JP Power Ven. has moved from an expensive valuation grade to fair. The company is currently fairly valued based on its financial ratios, with a PE ratio of 20.02, an EV to EBITDA of 9.98, and a ROCE of 9.55%. In comparison, its peers such as NTPC, which is rated very attractive, has a PE ratio of 14.18, while Tata Power Co., rated attractive, has a significantly higher PE ratio of 32.77.
The valuation metrics suggest that JP Power Ven. is positioned well within its industry, especially when compared to peers that are considered very expensive, such as Adani Power and JSW Energy, which have PE ratios of 18.03 and 47.64, respectively. The company's recent stock performance has outpaced the Sensex, with a year-to-date return of 34.16% compared to the Sensex's 5.75%, reinforcing the notion that it is fairly valued in the current market environment.