Is Loyal Equipments overvalued or undervalued?

As of 11 August 2025, the valuation grade for Loyal Equipments has moved from very expensive to expensive. The company is currently considered overvalued based on its financial ratios and peer comparisons. Key ratios include a PE ratio of 25.70, an EV to EBITDA of 16.96, and a PEG ratio of 3.57, which indicate a premium valuation relative to its earnings growth prospects.
In comparison to peers, Loyal Equipments' PE ratio is significantly lower than Thermax's 58.22 and BEML Ltd's 56.31, both of which are categorized as very expensive. However, it is still higher than ISGEC Heavy's attractive PE of 28.86. Additionally, while Loyal Equipments has shown strong returns over the long term, its recent performance has lagged behind the Sensex, particularly in the last month, where it declined by 21.21% compared to a 2.30% drop in the index.