Is Tarmat overvalued or undervalued?

As of 26 September 2025, Tarmat's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 57.98, an EV to EBITDA ratio of 39.27, and a PEG ratio of 1.26. Compared to peers, Tarmat's valuation stands out; for instance, Larsen & Toubro has a PE ratio of 33.1 and an EV to EBITDA of 17.18, while CG Power & Industries is considered very expensive with a PE ratio of 116.09.
Despite the recent adjustments in valuation, Tarmat has experienced significant declines in stock performance, with a year-to-date return of -37.29%, contrasting sharply with a 2.93% gain in the Sensex. This disparity highlights the potential for recovery, suggesting that Tarmat may be positioned for a rebound given its fair valuation amidst a challenging market environment.