Is Energy-Mission overvalued or undervalued?

As of 28 August 2025, the valuation grade for Energy-Mission has moved from fair to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 16.67, an EV to EBITDA of 11.38, and a ROE of 36.40%. These figures suggest that while the company has strong profitability metrics, its valuation does not align with its earnings potential. In comparison to its peers, Energy-Mission's PE ratio is substantially lower than that of Thermax, which stands at 56.6, and BEML Ltd at 53.45, both categorized as expensive. This disparity highlights that Energy-Mission may not justify its current valuation relative to its peers, especially given its PEG ratio of 0.00, indicating no growth expectations priced in. Furthermore, the company's stock has underperformed significantly against the Sensex, with a year-to-date return of -42.67% compared to the Sensex's 3.62%, reinforcing the notion that Energy-Mission is overvalued in the current market context.