Is Tarmat overvalued or undervalued?

As of 18 November 2025, Tarmat's valuation grade has moved from fair to attractive, indicating a more favorable outlook. The company is currently assessed as undervalued, particularly when considering its PE ratio of 41.77, a Price to Book Value of 0.80, and an EV to EBITDA of 35.81. These ratios suggest that while the stock is trading at a premium in terms of earnings, it remains attractive relative to its book value and operational cash flows.
When compared to peers, Tarmat's valuation metrics stand out. For instance, Larsen & Toubro, also rated attractive, has a lower PE ratio of 34.3 and an EV to EBITDA of 18.1, highlighting that Tarmat may offer better growth potential at a lower relative cost. In contrast, CG Power & Ind is deemed very expensive with a PE of 108.1, further emphasizing Tarmat's relative value. Additionally, Tarmat's recent stock performance has lagged behind the Sensex, with a year-to-date return of -33.98% compared to the Sensex's 8.36%, reinforcing the notion that the stock may be undervalued in the current market environment.