Is Tega Inds. overvalued or undervalued?

Jun 09 2025 04:40 PM IST
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As of May 15, 2023, Tega Industries is considered very expensive and overvalued with a PE ratio of 53.03, significantly higher than its peers, indicating that its current stock price is not justified despite a recent strong return.
As of 15 May 2023, Tega Industries has moved from expensive to very expensive in its valuation grade. The company is currently overvalued, with a PE ratio of 53.03, a Price to Book Value of 7.60, and an EV to EBITDA ratio of 31.14. These figures suggest that the stock is trading at a premium compared to its earnings and book value.

In comparison to its peers, Tega Industries stands out with a significantly higher PE ratio than Larsen & Toubro Ltd., which has a PE of 34.21, indicating that Tega is priced much higher relative to its earnings. Siemens Ltd. also shows a higher valuation with a PE of 56.88, but Tega's valuation remains on the higher end of the spectrum. Despite a strong return of 26.16% over the past month compared to the Sensex's 3.81%, the overall valuation metrics indicate that Tega Industries is not justified at its current price level.
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