Is Arrowhead Sepera overvalued or undervalued?

As of 9 September 2025, Arrowhead Sepera's valuation grade has moved from fair to expensive, indicating a shift in its market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 15.72, an EV to EBIT of 17.38, and an ROCE of 5.50%.
In comparison to its peers, Arrowhead Sepera's PE ratio is significantly lower than that of Rail Vikas, which stands at 58.13, and Tube Investments, which has a PE of 94.1. This suggests that while Arrowhead may appear less expensive relative to these peers, its overall valuation is still high given its recent performance, with a year-to-date stock return of -41.81% compared to a positive 3.79% return for the Sensex.