Synopsis:
The list of companies in the articles covers those companies that have a high EV/EBITDA multiple.
EV/EBITDA is a key valuation metric that indicates how fairly a company is priced in relation to its operating earnings. Unlike the P/E ratio, it factors in both debt and equity, making it useful for comparing companies with different financial structures. A lower ratio often points to undervaluation, while a higher one suggests the stock may be expensive.
Here are the stocks with a strong EV/EBITDA performance:
1. Colgate Palmolive Limited
Colgate-Palmolive (India) Limited, a subsidiary of Colgate-Palmolive, USA, is a leading provider of scientifically backed oral care products in India. Its offerings include toothpastes, tooth powders, toothbrushes, and mouthwashes under the ‘Colgate’ brand, along with specialized dental therapies through Colgate Oral Pharmaceuticals. The company is involved in the manufacturing and sale of oral care products as well as personal care items.
The company has a market value of Rs.60,625.60 crore and its share price was trading at Rs.2,229, up by 0.26 percent from the previous Rs.2,223.15. In Q1FY26, revenue fell to Rs.1,434 crores compared to Rs.1,497 crores in Q1FY25, while net profit fell to Rs.321 crores from Rs.364 crores a year earlier.
The company has reported a return on equity of 81 percent and a return on capital employed of 105 percent. Its P/E ratio stands at 43.27, which is lower than the industry average of 51.61, suggesting that the stock may be priced at a discount compared to its peers. Additionally, the stock trades with an EV/EBITDA multiple of 29.12.
2. Interglobe Aviation Limited
InterGlobe Aviation Limited is among India’s top airlines. Its main business is air transportation, offering passenger and cargo services along with related activities such as in-flight sales and other support services.
The company has a market value of Rs.2,13,416.09 crore and its share price was trading at Rs.5,520.85, down by 0.66 percent from the previous Rs.5,557.65. In Q1FY26, revenue from operations rose to Rs.20,496.3 crore compared to Rs.19,570 crore in Q1FY25, while net profit fell to Rs.2,174.9 crore from Rs.2,735.9 crore a year earlier.
The company has reported a return on equity of 104 percent and a return on capital employed of 17.3. Its P/E ratio stands at 32.51, which is slightly lower than the industry average of 32.59. Additionally, the stock trades at an EV/EBITDA multiple of 12.22.
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3. GE Vernova T&D Limited
GE T&D India Limited is a major company in the power transmission and distribution sector. It operates six manufacturing plants and offers a wide range of products and services, including transmission equipment for very high voltages, air-insulated and gas-insulated switchgear, and locally made power transformers. The company also provides power electronics solutions, smart grid technology, and supports the integration of renewable energy into the power network.
The company has a market value of Rs.76,378.68 crore and its share price was trading at Rs.2,982, up by 2.50 percent from the previous Rs.2,909.25. In Q1FY26, revenue from operations rose to Rs.1,330 crore compared to Rs.958 crore in Q1FY25, while net profit rose to Rs.291 crore from Rs.135 crore a year earlier.
The company has reported a return on equity of 40 percent and a return on capital employed of 54 percent. Its P/E ratio stands at 99.02, which is higher than the industry average of 47.96. Additionally, it trades with an EV/EBITDA multiple of 69.02.
4. Tata Power Limited
Tata Power Company Ltd mainly works in producing, transmitting, and supplying electricity. The company is focused on generating power entirely from renewable sources, such as solar, wind, and hydro energy.
The company has a market value of Rs.1,22,701.04 crore, and its share price was trading at Rs.384, up by 0.04 percent from the previous Rs.383.85.In Q1FY26, revenue from operations rose to Rs.18,035.07 crore compared to Rs.17,293.62 crore in Q1FY25, while net profit fell to Rs.1,262.32 crore from Rs.1,188.63 crore a year earlier.
The company has reported a return on equity of 11 percent and a return on capital employed of 10.8 . Its P/E ratio stands at 30.07, which is higher than the industry average of 21.41, suggesting that the stock may be priced at a premium compared to its peers. Additionally, it trades at an EV/EBITDA multiple of 11.14.
Written by Jhanavi Sivakumar
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