Is Ameya Precision overvalued or undervalued?

As of 26 August 2025, Ameya Precision's valuation grade has moved from very attractive to fair, indicating a shift in market perception. The company is currently fairly valued, with a PE ratio of 17.18, an EV to EBITDA ratio of 12.23, and a PEG ratio of 0.34, suggesting that while it is not undervalued, it also does not appear to be significantly overvalued.
In comparison to its peers, Ameya Precision's PE ratio is notably lower than that of Thermax and BEML Ltd, which stand at 57.92 and 53.85, respectively, indicating that Ameya Precision is more reasonably priced within its industry. The company's ROCE of 27.60% and ROE of 19.46% further highlight its operational efficiency and profitability. Despite recent underperformance compared to the Sensex, with a year-to-date return of -11.83% versus the Sensex's 4.51%, the valuation metrics suggest that Ameya Precision is maintaining a stable position in the market.