Is Action Const.Eq. overvalued or undervalued?

As of 20 October 2025, the valuation grade for Action Const.Eq. has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently overvalued based on its financial metrics. Key ratios include a PE Ratio of 31.34, an EV to EBITDA of 25.67, and a Price to Book Value of 8.21, all of which suggest that the stock is trading at a premium compared to its earnings and assets.
In comparison to its peers, Action Const.Eq. has a PE Ratio that is lower than Thermax's 56.56 but higher than Elecon Engg.Co's 27.14, indicating a mixed relative valuation. The PEG Ratio of 1.39 also highlights that the stock is priced high relative to its growth expectations. Notably, while the company has outperformed the Sensex in the long term, with a 3-year return of 287.11% compared to the Sensex's 42.50%, its recent performance has lagged, with a year-to-date return of -26.11% versus the Sensex's 7.97%.