Is JSL Industries overvalued or undervalued?

As of 16 September 2025, the valuation grade for JSL Industries has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently deemed overvalued, with a PE ratio of 53.87, an EV to EBIT ratio of 58.73, and an EV to EBITDA ratio of 39.30. These figures suggest that the stock is trading at a premium compared to its earnings and cash flow generation capabilities.
In comparison to its peers, JSL Industries stands out as having a notably higher PE ratio than Larsen & Toubro, which is rated attractive with a PE of 32.57, and CG Power & Ind, which is classified as very expensive with a PE of 124.38. This disparity highlights JSL's overvaluation relative to its industry peers. Additionally, while the stock has shown strong returns over the long term, its year-to-date performance of -24.37% compared to the Sensex's 5.43% underscores the challenges it faces in the current market environment.