Is Mahan Industries overvalued or undervalued?

Jun 09 2025 04:20 PM IST
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As of May 27, 2025, Mahan Industries is considered overvalued with a PE ratio of 3.24 and an EV to EBIT ratio of 6.68, despite a strong 1-year return of 239.64%, as it trades at a premium compared to its earnings and book value relative to peers.
As of 27 May 2025, Mahan Industries has moved from a fair to an expensive valuation grade. The company appears to be overvalued based on its current financial ratios, including a PE ratio of 3.24, an EV to EBIT ratio of 6.68, and a Price to Book Value of 1.06. These figures suggest that the stock is trading at a premium compared to its earnings and book value.

In comparison to its peers, Mahan Industries has a significantly lower PE ratio than Life Insurance, which stands at 12.54, and Bajaj Finserv Ltd., which is at 35.83. Furthermore, Mahan's EV to EBITDA ratio of 6.68 is also less favorable compared to the industry benchmarks. The company's recent stock performance has outpaced the Sensex, with a remarkable 1-year return of 239.64% compared to the Sensex's 7.57%, but this does not justify its current overvaluation.
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