Is Lakshya Powertec overvalued or undervalued?

As of 31 October 2025, Lakshya Powertec's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of 8.26, an EV to EBITDA of 6.80, and a ROE of 16.60%. Compared to its peers, Lakshya Powertec stands out with a significantly lower PE ratio than Rail Vikas, which is considered expensive at 57.52, and Tube Investments, which is very expensive at 89.96.
Despite the recent price increase to 129.60 from a previous close of 108.00, the company's year-to-date return of -60.81% starkly contrasts with the Sensex's positive return of 8.79%. This underperformance, alongside its fair valuation, suggests that while the stock may not be undervalued, it is not positioned for significant growth in the near term compared to its peers.