Is Godha Cabcon overvalued or undervalued?

As of 26 August 2025, the valuation grade for Godha Cabcon has moved from very attractive to attractive, indicating a shift in market perception. The company is currently assessed as undervalued, with a PE ratio of 11.93, an EV to EBITDA of 13.79, and a PEG ratio of 0.02, suggesting significant growth potential relative to its price.
In comparison to peers, Godha Cabcon's valuation metrics stand out; for instance, Rail Vikas has a PE ratio of 54.71, while AIA Engineering shows a PE of 25.89, both categorizing them as expensive. Despite recent underperformance against the Sensex, with a year-to-date return of -53.6% compared to the Sensex's 4.51%, the underlying ratios indicate that Godha Cabcon remains an attractive investment opportunity in the industrial manufacturing sector.