Is Engineers India overvalued or undervalued?

As of 28 May 2025, the valuation grade for Engineers India has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently considered overvalued based on its financial ratios, including a PE ratio of 22.25, an EV to EBITDA of 22.74, and a Price to Book Value of 5.42. These figures suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison with peers, Engineers India’s PE ratio is lower than that of Rail Vikas at 69.76 and Tube Investments at 87.5, both of which are also classified as very expensive. However, it is still markedly higher than Ircon International, which is rated fair with a PE of 28.25. The company’s recent stock performance has outpaced the Sensex over the past month, with a return of 33.15% compared to the Sensex's 3.88%, further reinforcing the notion of overvaluation in the context of its current market price of 232.95.