Is Konstelec Engg. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Konstelec Engineering has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued based on its key financial ratios, including a PE ratio of 21.32, an EV to EBIT of 12.10, and an EV to EBITDA of 11.10. These figures suggest that the stock is priced higher relative to its earnings and cash flows compared to its peers.
In comparison to its industry peers, Konstelec's valuation appears less favorable; for instance, Rail Vikas has a significantly higher PE ratio of 57.52, while Ircon International, which is rated attractive, has a PE of 23.89. Additionally, the company's recent stock performance has been poor, with a year-to-date return of -48.76%, contrasting sharply with the Sensex's positive return of 8.79% over the same period. Overall, the combination of high valuation ratios and weak performance suggests that Konstelec Engineering is overvalued in the current market environment.