Is H.M. Electro overvalued or undervalued?

As of 26 August 2025, the valuation grade for H.M. Electro has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE Ratio of 10.34, an EV to EBIT of 7.69, and a ROCE of 28.86%.
In comparison to its peers, H.M. Electro's PE Ratio is significantly lower than Rail Vikas, which stands at 54.71, indicating that H.M. Electro is more attractively priced relative to its earnings. Other peers like Tube Investments and AIA Engineering are also valued at much higher multiples, reinforcing the notion that H.M. Electro is fairly valued. Notably, the stock has underperformed the Sensex over the past month, with a return of -6.58% compared to the Sensex's -0.83%, which may suggest a market correction opportunity.