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, with a PE ratio of 19.99, a Price to Book Value of 4.35, and an EV to EBITDA of 13.15. In comparison to peers, Thermax is considered expensive with a PE ratio of 60.32, while L G Balakrishnan is fairly valued with a PE of 19.21.
Despite the recent downturn in stock performance, with a year-to-date return of -25.35% compared to the Sensex's 8.22%, Loyal Equipments demonstrates strong fundamentals, including a ROCE of 29.34% and an ROE of 21.78%. This suggests that while the stock has faced challenges, it remains a solid investment in the industrial manufacturing sector.