Is Rajesh Power overvalued or undervalued?

As of 14 November 2025, Rajesh Power's valuation grade has moved from very expensive to attractive, indicating a significant shift in its market perception. The company is currently assessed as undervalued. Key ratios include a PE Ratio of 28.47, an EV to EBITDA of 20.15, and a ROE of 27.90%.
In comparison to its peers, Rajesh Power's PE ratio is notably higher than NTPC's 13.41, yet lower than Tata Power's 30.72, suggesting it is competitively positioned within the sector. Additionally, while NTPC and NLC India are also classified as attractive, other competitors like Adani Power and Power Grid Corporation are deemed very expensive, reinforcing Rajesh Power's relative value. The stock has underperformed against the Sensex in the short term, with a 1-month return of -8.51%, but has outperformed year-to-date with a return of 22.54%.