Is Machhar Industri overvalued or undervalued?

As of 12 November 2025, the valuation grade for Machhar Industri has moved from risky to does not qualify, indicating a significant deterioration in its investment appeal. The company is currently overvalued, with a PE ratio of 180.09, an EV to EBIT of 21.44, and an EV to EBITDA of 21.44. These ratios suggest that the stock is trading at a premium compared to its earnings and cash flow generation capabilities.
In comparison to its peers, Machhar Industri's valuation metrics are starkly higher than those of Altius Telecom, which has a PE ratio of 56.22 and an EV to EBITDA of 10.61, highlighting the overvaluation of Machhar. Additionally, the company's return on equity (ROE) stands at a mere 1.75%, further emphasizing its inefficiency in generating returns for shareholders. Recent performance shows that while the stock returned 8.59% over the past week, it has significantly underperformed the Sensex over the past year, with a decline of 25.3% compared to the Sensex's gain of 7.36%.