Is DRA Consultants overvalued or undervalued?

As of 26 May 2025, the valuation grade for DRA Consultants has moved from does not qualify to very attractive. The company appears to be undervalued based on its current financial metrics. Key ratios include a PE Ratio of 9.71, an EV to EBITDA of 6.06, and a PEG Ratio of 0.75, all of which suggest that the stock is trading at a discount compared to its earnings growth potential.
In comparison to peers, DRA Consultants stands out with a significantly lower PE Ratio than Rail Vikas, which has a PE of 69.76, and Tube Investments at 87.5, both categorized as very expensive. The company's ROCE of 10.91% and ROE of 8.93% also indicate solid returns relative to its valuation. Notably, DRA Consultants has outperformed the Sensex in the short term, with a 1-week stock return of 19.66% compared to the Sensex's 1.41%.