Is Ircon Intl. overvalued or undervalued?

As of 5 September 2025, the valuation grade for Ircon International has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 23.80, an EV to EBITDA of 18.90, and a dividend yield of 1.74%.
In comparison to its peers, Ircon International's valuation stands out as more reasonable, especially when compared to Rail Vikas, which is deemed expensive with a PE ratio of 57.71, and Tube Investments, which is very expensive at a PE of 89.02. Despite its fair valuation, Ircon has underperformed in the year-to-date period with a return of -21.37%, contrasting with the Sensex's gain of 3.29%. This performance may suggest that the market has not fully recognized the company's potential, reinforcing the conclusion that it is fairly valued at present.