Is Synergy Green overvalued or undervalued?

As of 28 July 2025, the valuation grade for Synergy Green has moved from fair to attractive, indicating a more favorable outlook for the company. Based on the analysis, Synergy Green is currently undervalued. The company has a PE ratio of 48.50, an EV to EBITDA of 17.62, and a PEG ratio of 1.47, which suggest that while the stock is priced at a premium, it may still offer growth potential relative to its earnings. In comparison with peers, Bharat Forge has a higher PE ratio of 55.03 and an EV to EBITDA of 22.61, while CIE Automotive, which is also rated attractive, has a significantly lower PE of 19.57 and an EV to EBITDA of 11.56. This positions Synergy Green favorably within its industry, particularly when considering its strong ROCE of 18.79% and ROE of 15.70%. Additionally, over the past year, Synergy Green has outperformed the Sensex with a return of 53.43% compared to the Sensex's -0.54%, reinforcing the notion that the stock is undervalued relative to its performance.