Is Amba Enterprises overvalued or undervalued?
As of July 3, 2025, Amba Enterprises is fairly valued with a PE ratio of 25.77, an EV to EBITDA of 18.71, and a ROCE of 20.16%, significantly lower than peers like Rail Vikas and Tube Investments, despite underperforming the Sensex year-to-date with a return of -26.60%, while achieving a strong long-term growth of 1115.15% over five years.
As of 3 July 2025, the valuation grade for Amba Enterprises has moved from expensive to fair, indicating a more favorable assessment of its market position. Based on the analysis, the company is currently fairly valued. Key ratios include a PE ratio of 25.77, an EV to EBITDA of 18.71, and a ROCE of 20.16%. In comparison with peers, Amba Enterprises' PE ratio is significantly lower than that of Rail Vikas, which stands at 63.56, and Tube Investments, which has a PE ratio of 84.7. Additionally, Ircon International, another peer, has a similar valuation grade with a PE ratio of 25.74. Notably, Amba Enterprises has underperformed the Sensex in the short term, with a year-to-date return of -26.60% compared to the Sensex's 6.53%, but it has shown strong long-term growth with a 5-year return of 1115.15%.
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