Is Batliboi overvalued or undervalued?

As of 7 November 2025, Batliboi's valuation grade has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company remains overvalued based on its current metrics. The PE ratio stands at a high 103.94, while the EV to EBITDA ratio is at 56.71, both significantly above industry norms. Additionally, the company's ROE and ROCE are relatively low at 5.27% and 5.28%, respectively, which raises concerns about its profitability.
In comparison to its peers, Batliboi's valuation appears particularly high; for instance, Rail Vikas has a PE ratio of 55.79 and an EV to EBITDA of 68.25, while Tube Investments shows a PE of 91.93 but a much lower EV to EBITDA of 19.64. This suggests that Batliboi is trading at a premium compared to its industry counterparts, reinforcing the conclusion that it is overvalued. Despite a strong performance over the past three years, with a stock return of 197.25% compared to the Sensex's 36.01%, the current valuation metrics indicate that investors should approach with caution.