Is Energy-Mission overvalued or undervalued?

As of 9 October 2025, the valuation grade for Energy-Mission has moved from very expensive to expensive, indicating a shift in market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 15.49, an EV to EBITDA of 10.12, and a ROCE of 17.55%.
In comparison to peers, Energy-Mission's PE ratio is significantly lower than that of Thermax, which stands at 56.36, and BEML Ltd, at 60.85. This suggests that while Energy-Mission is relatively less expensive, it still does not justify its current valuation given the overall market conditions. Additionally, the company's stock has underperformed compared to the Sensex, with a year-to-date return of -46.41% versus the Sensex's 6.50%, further reinforcing the notion that Energy-Mission is overvalued at its current price of 171.85.