Is ABS Marine overvalued or undervalued?

As of 17 October 2025, ABS Marine's valuation grade has moved from fair to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, with a PE ratio of 15.92, an EV to EBIT of 12.83, and an EV to EBITDA of 12.20. These ratios suggest that ABS Marine is trading at a discount compared to its peers, particularly GE Shipping Co, which has a PE ratio of 7.27, and S C I, which has a PE of 11.57.
In the context of its industry, ABS Marine's PEG ratio stands at 0.00, highlighting its growth potential without the corresponding valuation premium. The company's return on capital employed (ROCE) is 13.69%, and return on equity (ROE) is 11.28%, both of which are solid indicators of operational efficiency. Despite recent stock performance lagging behind the Sensex, with a year-to-date return of -13.53% compared to the Sensex's 8.73%, the underlying fundamentals suggest that ABS Marine presents a compelling investment opportunity at its current price of 173.25.