Is Loyal Equipments overvalued or undervalued?

As of 17 November 2025, Loyal Equipments has moved from a fair to an expensive valuation grade. The company appears to be overvalued based on its current metrics. The PE ratio stands at 24.73, while the EV to EBITDA ratio is 15.46, and the Price to Book Value is 4.33. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Loyal Equipments' PE ratio is significantly lower than that of Thermax, which has a PE of 60.51, and BEML Ltd, with a PE of 56.55, indicating that while Loyal Equipments is deemed expensive, it is relatively more attractive than some of its peers. However, its PEG ratio of 0.00 raises concerns about future growth expectations. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -25.82% compared to the Sensex's 8.72%, reinforcing the notion that the stock may be overvalued.