Is Swelect Energy overvalued or undervalued?

As of 23 September 2025, Swelect Energy's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 52.21, an EV to EBITDA of 13.35, and a PEG ratio of 2.28, which suggest that while the company is generating earnings, its valuation remains elevated compared to its growth prospects.
In comparison to its peers, Swelect Energy's PE ratio is significantly lower than that of Kaynes Tech, which stands at 152.87, and Honeywell Auto at 63.46, both of which are considered very expensive. This positions Swelect Energy as more reasonably priced within the heavy electrical equipment industry. Notably, the company's recent stock performance has outpaced the Sensex over the past week and month, with returns of 4.27% and 21.38%, respectively, contrasting with the Sensex's declines. However, over the longer term, the stock has underperformed relative to the Sensex, suggesting a cautious outlook moving forward.