Is Ircon Intl. overvalued or undervalued?

As of 11 August 2025, the valuation grade for Ircon International has moved from attractive to fair, indicating a shift in perception regarding its value. The company appears to be fairly valued at present, with a PE ratio of 23.74, an EV to EBITDA of 18.84, and a dividend yield of 1.74%. In comparison to its peers, Ircon's valuation metrics are notably lower than those of Rail Vikas, which has a PE ratio of 55.71, and Tube Investments, with a PE ratio of 89.36, both categorized as expensive.
Despite the fair valuation, Ircon has experienced significant stock underperformance, with a year-to-date return of -21.58%, contrasting sharply with the Sensex's positive return of 3.15% during the same period. This suggests that while the company's current valuation is reasonable relative to its peers, market sentiment may be weighing heavily on its stock price.