Is Tarmat overvalued or undervalued?

As of 3 November 2025, Tarmat's valuation grade has moved from fair to expensive, indicating a significant shift in its market perception. The company is currently deemed overvalued, particularly when considering its high PE ratio of 63.60 and an EV to EBITDA ratio of 43.09. Additionally, the ROCE stands at a mere 0.92%, which raises concerns about its efficiency in generating returns relative to its capital employed.
In comparison to its peers, Tarmat's valuation metrics are notably higher; for instance, Larsen & Toubro, classified as attractive, has a PE ratio of 34.14 and an EV to EBITDA of 18.36. Other competitors like CG Power & Ind and Siemens are categorized as very expensive, with PE ratios of 109.86 and 58.29, respectively, but they still fall short of Tarmat's ratios. The company's recent stock performance has been underwhelming, with a year-to-date return of -33.96%, contrasting sharply with the Sensex's positive return of 7.47% in the same period, further reinforcing the notion that Tarmat is overvalued in the current market landscape.