Is Rajesh Power overvalued or undervalued?

As of 14 November 2025, Rajesh Power has moved from a valuation grade of very expensive to attractive, indicating a significant shift in its perceived value. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 28.47, an EV to EBITDA of 20.15, and a ROE of 27.90%.
When compared to peers, Rajesh Power's PE ratio is notably higher than NTPC's 13.41, which is also rated as attractive, while it is lower than Adani Power's very expensive PE of 24.67. The PEG ratio of Rajesh Power stands at 0.00, suggesting that the stock may be undervalued relative to its growth prospects. Despite recent stock performance lagging behind the Sensex over the past month, the year-to-date return of 22.54% indicates strong underlying growth potential.