Is UTL Industries overvalued or undervalued?

As of 13 November 2025, the valuation grade for UTL Industries has moved from risky to does not qualify, indicating a significant deterioration in its investment appeal. The company is currently considered overvalued, with a PE ratio of 247.16, an EV to EBIT of 9.94, and an EV to EBITDA also at 9.94. These ratios suggest that the stock is trading at a premium compared to its earnings and cash flow generation capabilities.
In comparison to its peers, UTL Industries stands out unfavorably; for instance, PTC India, which is rated very attractive, has a PE ratio of just 7.67, while Elitecon International, labeled very expensive, has a PE of 320.89. The high valuation metrics of UTL Industries, combined with its low return on capital employed (ROCE) of 0.93% and return on equity (ROE) of 0.95%, further reinforce the notion that it is overvalued. Despite a recent surge in stock price, with a 1-month return of 115.83% compared to the Sensex's 2.61%, the long-term performance remains concerning, with significant declines over 1, 3, 5, and 10 years.