Is Arrowhead Sepera overvalued or undervalued?

As of 17 September 2025, the valuation grade for Arrowhead Sepera has moved from expensive to fair. The company is currently fairly valued, with a PE ratio of 15.22, an EV to EBITDA ratio of 16.46, and a Price to Book Value of 0.92. In comparison to its peers, Rail Vikas is considered expensive with a PE ratio of 63.09, while Ircon International, which is also fairly valued, has a PE ratio of 26.33.
Despite the recent adjustment in valuation, Arrowhead Sepera has underperformed significantly compared to the Sensex, with a year-to-date return of -43.64% versus the Sensex's 5.83%. This stark contrast highlights the challenges faced by the company within the industrial manufacturing sector, even as its valuation appears more reasonable relative to its peers.