Is Supreme Power overvalued or undervalued?

As of 28 May 2025, the valuation grade for Supreme Power has moved from very attractive to fair. The company appears to be fairly valued based on its current financial ratios, including a PE ratio of 22.75, an EV to EBIT of 19.16, and a PEG ratio of 0.69. In comparison to its peers, Supreme Power's valuation metrics are significantly lower than those of ABB India Ltd., which has a PE ratio of 67.88, and Bharat Heavy Electricals Ltd., with a PE ratio of 166.73, both categorized as very expensive.
Given these ratios and the recent performance, Supreme Power is assessed as fairly valued. The company's return over the past year has been -30.26%, contrasting sharply with the Sensex's return of 7.86%, indicating underperformance relative to the broader market. This suggests that while the company is currently fairly valued, its stock performance may not reflect its intrinsic value in the long term.