Is Lakshya Powertec overvalued or undervalued?

As of 17 November 2025, Lakshya Powertec's valuation grade has moved from fair to attractive, indicating a favorable shift in its valuation outlook. The company is currently considered undervalued, with a PE ratio of 8.53, an EV to EBITDA ratio of 6.99, and a ROE of 16.60%. These ratios suggest that the company is trading at a significant discount compared to its peers, particularly when compared to Rail Vikas, which has a PE ratio of 60.05, and Tube Investments, with a PE ratio of 95.02.
In the context of its recent stock performance, Lakshya Powertec has underperformed the Sensex, with a year-to-date return of -59.54% compared to the Sensex's 10.02%. This stark contrast further reinforces the notion that the stock may be undervalued, especially given its strong operational metrics such as a ROCE of 18.53%. Overall, Lakshya Powertec presents an attractive investment opportunity relative to its peers in the industrial manufacturing sector.