Is Ajax Engineering overvalued or undervalued?

As of 8 October 2025, the valuation grade for Ajax Engineering has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently considered overvalued. Key ratios include a PE ratio of 27.88, an EV to EBITDA ratio of 20.61, and an ROE of 22.48%.
In comparison to its peers, Ajax Engineering's PE ratio is notably lower than that of Thermax, which has a PE of 56.15, and BEML Ltd, with a PE of 59.51, both categorized as very expensive. This suggests that while Ajax Engineering is overvalued, it is not as extreme as some of its peers. Recent stock performance shows a decline of 3.12% over the past week, contrasting with a 0.98% increase in the Sensex, further supporting the overvaluation narrative.