Is Tarmat overvalued or undervalued?

As of 31 October 2025, Tarmat's valuation grade has moved from expensive to fair, indicating a shift in its market perception. The company is currently fairly valued, with a PE ratio of 64.21, an EV to EBITDA of 43.50, and a Price to Book Value of 0.82. In comparison, peers such as Larsen & Toubro, which is rated attractive, has a significantly lower PE ratio of 34.58 and an EV to EBITDA of 18.56, highlighting Tarmat's relatively high valuation metrics.
Despite the recent adjustments in its valuation, Tarmat's financial performance remains under scrutiny, with a ROCE of only 0.92% and a ROE of 1.19%. The company has underperformed against the Sensex, with a year-to-date return of -33.33% compared to the Sensex's 7.42%, further emphasizing the challenges it faces in the current market environment.