Is Ameya Precision overvalued or undervalued?

As of 30 June 2025, Ameya Precision's valuation grade has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently undervalued, with a PE ratio of 18.27, an EV to EBITDA ratio of 13.05, and a PEG ratio of 0.36, all of which suggest that the stock is trading at a discount compared to its earnings growth potential.
In comparison to its peers, Ameya Precision stands out favorably; for instance, Thermax has a much higher PE ratio of 64.2 and an EV to EBITDA of 43.76, while BEML Ltd is even more expensive with a PE of 63.47. These comparisons reinforce the attractiveness of Ameya Precision's valuation. Additionally, the company's ROCE of 27.60% and ROE of 19.46% further highlight its strong financial performance. Despite recent underperformance relative to the Sensex, with a year-to-date return of -6.24% compared to the Sensex's 7.92%, the underlying fundamentals suggest that Ameya Precision presents a compelling investment opportunity.