Is Orient Electric overvalued or undervalued?

As of 25 July 2025, Orient Electric has moved from expensive to fair in its valuation grade. The company is currently fairly valued, with a PE ratio of 55.08, an EV to EBITDA ratio of 22.77, and a PEG ratio of 0.97. Comparatively, peers such as Crompton Greaves Consumer, which is rated attractive, has a significantly lower PE ratio of 38.11, while Dixon Technologies is deemed expensive with a PE of 123.05.
Despite the fair valuation, Orient Electric's recent stock performance has lagged behind the Sensex, with a year-to-date return of -3.9% compared to the Sensex's 4.25%. This underperformance, alongside a relatively high valuation compared to some peers, suggests that while the stock is currently fairly valued, it may face challenges in gaining traction in the market.