Is Loyal Equipments overvalued or undervalued?

As of 14 November 2025, the valuation grade for Loyal Equipments has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE Ratio of 19.99, an EV to EBITDA of 13.15, and a ROCE of 29.34%.
In comparison to its peers, Loyal Equipments stands out against Thermax, which has a significantly higher PE Ratio of 60.32, and BEML Ltd, with a PE Ratio of 56.6. The fair valuation of Loyal Equipments suggests it is positioned well within its industry, especially when considering its strong performance metrics. Despite recent underperformance relative to the Sensex, with a year-to-date return of -25.35% compared to the Sensex's 8.22%, its long-term growth potential remains robust, as evidenced by a remarkable 454.86% return over the past three years.