Is Engineers India overvalued or undervalued?

As of 28 July 2025, Engineers India has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 20.97, an EV to EBITDA of 21.30, and a PEG ratio of 0.69, which suggests that while the company has growth potential, its current price may not be justified by its earnings growth.
In comparison to peers, Engineers India’s valuation metrics are notably higher than those of Ircon International, which has a PE of 22.77 and an EV to EBITDA of 18.55, indicating that Engineers India is priced at a premium relative to this competitor. Additionally, Rail Vikas is significantly more expensive with a PE ratio of 57.69. Despite a year-to-date stock return of 18.55%, which outperformed the Sensex's 3.52%, the overall valuation suggests that the stock may not provide sufficient upside given its current price levels.