Is Ircon Intl. overvalued or undervalued?

As of 21 August 2025, the valuation grade for Ircon International has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, especially when compared to its peers. Key ratios include a PE ratio of 23.95, an EV to EBITDA of 19.02, and a PEG ratio of 0.00, which suggests strong growth potential relative to its price.
In comparison to peers, Ircon International's valuation appears favorable; for instance, Rail Vikas has a PE ratio of 57.49 and AIA Engineering stands at 26.6, both categorized as expensive. Additionally, while Ircon's dividend yield is 1.73%, it is noteworthy that its return on capital employed (ROCE) is 13.38%, reflecting efficient capital utilization. Despite a recent decline in stock performance compared to the Sensex, particularly over the past year, the long-term returns over three and five years indicate a robust growth trajectory, reinforcing the attractiveness of the current valuation.