Is Batliboi overvalued or undervalued?

As of 7 November 2025, the valuation grade for Batliboi has moved from very expensive to expensive. The company is currently considered overvalued based on its high valuation ratios. The PE ratio stands at 103.94, while the EV to EBITDA ratio is 56.71, both significantly higher than its peers. For instance, Rail Vikas has a PE of 55.79 and an EV to EBITDA of 68.25, indicating that Batliboi's valuation is not justified when compared to similar companies in the industrial manufacturing sector.
In addition, Batliboi's ROCE and ROE are relatively low at 5.28% and 5.27%, respectively, which raises concerns about its ability to generate returns commensurate with its high valuation. The company has experienced a strong return of 47.08% over the past month, outperforming the Sensex, which returned 1.57% in the same period. However, the overall valuation suggests that investors may be paying a premium that is not supported by the company's financial performance.