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 considered undervalued. 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 but lower than Tata Power's 30.72, suggesting a competitive position within the industry. Additionally, while Rajesh Power's PEG ratio stands at 0.00, indicating no expected growth in earnings, it contrasts sharply with NTPC's PEG of 1.76. Despite recent stock performance lagging behind the Sensex in the short term, Rajesh Power has shown a year-to-date return of 22.54%, outperforming the Sensex's 8.22%.