Is Orient Electric overvalued or undervalued?

As of 25 July 2025, Orient Electric's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 55.08, an EV to EBITDA of 22.77, and a PEG ratio of 0.97. In comparison to its peers, Crompton Greaves Consumer, which is rated attractive, has a significantly lower PE ratio of 38.11, while Dixon Technologies is considered expensive with a PE of 123.05.
Despite the recent adjustments in valuation, Orient Electric has underperformed relative to the Sensex, with a year-to-date return of -3.9% compared to the Sensex's 4.25%. This performance, combined with its current ratios, suggests that while the stock may be fairly valued now, there are concerns about its growth potential and market competitiveness in the electronics and appliances sector.