Is Mahindra EPC overvalued or undervalued?

As of 23 September 2025, the valuation grade for Mahindra EPC has moved from fair to expensive, indicating that the company is currently overvalued. The key ratios reflect this assessment, with a PE ratio of 39.76, an EV to EBITDA of 23.72, and a Price to Book Value of 2.49. These figures suggest that the company's stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Mahindra EPC's valuation stands out as expensive, particularly when juxtaposed with Finolex Industries, which has a PE ratio of 33.05 and an EV to EBITDA of 30.94. Other peers like Supreme Industries and Astral are categorized as very expensive, further highlighting the relative valuation of Mahindra EPC. Despite a strong year-to-date return of 33.90%, the recent performance against the Sensex shows a decline over the past month, which reinforces the notion that the stock may not be justified at its current price level.