Is Ajax Engineering overvalued or undervalued?

As of 14 November 2025, Ajax Engineering's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently assessed as overvalued. Key ratios include a PE ratio of 27.56, an EV to EBITDA of 20.36, and a ROE of 22.48%.
In comparison with peers, Ajax Engineering's PE ratio is notably lower than Thermax's 60.32 and BEML Ltd's 56.6, both categorized as very expensive. However, it is higher than Elecon Engg. Co's PE of 26.69, which is also very expensive. The recent stock performance shows a 5.5% return over the past week, significantly outperforming the Sensex's 1.62% return, which may suggest short-term investor optimism despite the overall overvaluation.