Is Solex Energy overvalued or undervalued?

As of 28 August 2025, the valuation grade for Solex Energy has moved from fair to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued based on its high valuation ratios. The PE ratio stands at 35.63, the Price to Book Value is 30.51, and the EV to EBITDA ratio is 21.71, all of which are considerably elevated compared to industry norms.
In comparison to its peers, Solex Energy's PE ratio is notably higher than that of Apar Industries, which has a PE of 35.14, and significantly outpaces other companies like HPL Electric, which is rated attractive with a PE of 31.32. This suggests that Solex Energy may not justify its premium valuation given the performance metrics of its competitors. Additionally, while the stock has shown a remarkable return of 660.43% over the past three years, its recent performance has lagged behind the Sensex, raising concerns about its sustainability at current price levels.