Is Salzer Electron. overvalued or undervalued?

As of 1 October 2025, the valuation grade for Salzer Electronics has moved from attractive to very attractive. The company is currently considered undervalued, with a PE ratio of 19.71, an EV to EBITDA of 12.44, and a PEG ratio of 0.56, indicating strong growth potential relative to its price.
In comparison to peers, Salzer's PE ratio is significantly lower than that of Larsen & Toubro, which stands at 32.56, and its EV to EBITDA is more favorable than IRB Infrastructure Development's 11.4, suggesting that Salzer offers better value in its sector. Despite recent stock performance lagging behind the Sensex, particularly in the year-to-date return of -44.62% compared to the Sensex's 3.64%, the long-term outlook remains promising, especially given its impressive 5-year return of 750.22%.