Is Gautam Exim overvalued or undervalued?

As of 14 October 2025, Gautam Exim's valuation grade has moved from risky to very expensive, indicating a significant deterioration in its investment appeal. The company is currently overvalued, with a staggering PE ratio of 687.06, an EV to EBIT of 89.63, and an EV to Sales ratio of 2.50. These metrics suggest that the stock is priced excessively compared to its earnings and sales potential.
In comparison to its peers, Gautam Exim's valuation stands out unfavorably; for instance, Elitecon International has a PE ratio of 378.51, while MMTC, categorized as risky, has a PE of 143.23. Additionally, the company's return on capital employed (ROCE) is only 4.11%, and return on equity (ROE) is a mere 0.98%, further emphasizing its overvaluation. Despite a strong year-to-date return of 76.5% compared to the Sensex's 4.98%, the fundamental ratios indicate that Gautam Exim is not a sound investment at its current price level.