Is Mahindra EPC overvalued or undervalued?

As of 20 October 2025, Mahindra EPC's valuation grade has moved from expensive to very attractive, indicating a significant improvement in its valuation outlook. The company is currently assessed as undervalued, particularly when considering its key ratios: a PE ratio of 27.52, an EV to EBITDA of 31.40, and a PEG ratio of 0.04, which suggests strong growth potential relative to its price.
In comparison to its peers, Mahindra EPC stands out favorably against Supreme Industries, which has a PE ratio of 59.77, and Astral, with a PE of 80.45, both categorized as very expensive. Additionally, Finolex Industries, deemed fair, has a PE of 29.76, further highlighting Mahindra EPC's attractive positioning within the industrial manufacturing sector. While the stock has underperformed against the Sensex in the short term, its year-to-date return of 20.58% significantly outpaces the index's 7.97%, reinforcing the case for its undervaluation.