Is JSL Industries overvalued or undervalued?

As of 7 November 2025, JSL Industries' valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently assessed as overvalued, with a PE ratio of 51.04, an EV to EBITDA ratio of 37.27, and a Price to Book Value of 3.11. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, JSL Industries' valuation metrics stand out unfavorably. For instance, Larsen & Toubro, which is rated as attractive, has a PE ratio of 33.3 and an EV to EBITDA of 17.96, significantly lower than JSL's ratios. Similarly, CG Power & Industries, also classified as very expensive, has a much higher PE ratio of 108.41, but its EV to EBITDA is substantially higher at 71.30, further emphasizing JSL's overvaluation. Despite recent stock performance showing a 1.45% return over the past week compared to a -0.86% return for the Sensex, the long-term outlook remains concerning, particularly given the company's substantial decline of 49.72% over the past year.