Is Gautam Exim overvalued or undervalued?

As of 7 November 2025, the valuation grade for Gautam Exim has moved from risky to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a staggering PE ratio of 681.73, an EV to EBIT of 88.94, and an EV to EBITDA also at 88.94. These ratios suggest that the stock is trading at a premium compared to its earnings and cash flows.
In comparison with peers, Gautam Exim's PE ratio is notably higher than that of Elitecon International at 378.62 and MMTC at 139.02, both of which are also categorized as risky or very expensive. Additionally, the company’s ROCE stands at a mere 4.11% and ROE at 0.98%, further emphasizing its overvaluation relative to its earnings generation capabilities. While Gautam Exim has outperformed the Sensex significantly over the past few years, with a YTD return of 75.13% compared to the Sensex's 6.50%, the current valuation metrics suggest caution for potential investors.