Is Mahan Industries overvalued or undervalued?

Jul 02 2025 08:02 AM IST
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As of July 1, 2025, Mahan Industries is considered undervalued with a PE ratio of 3.39 and strong stock performance of 249.07% over the past year, despite operational challenges indicated by a negative ROCE of -2.62%.
As of 1 July 2025, Mahan Industries has moved from an expensive to a risky valuation grade. The company is currently considered undervalued, with a PE ratio of 3.39, a Price to Book Value of 1.11, and an EV to EBITDA ratio of 6.84. Notably, Mahan's ROE stands at 2.30%, while its ROCE is negative at -2.62%, indicating operational challenges.

When compared to peers, Mahan Industries' valuation metrics are significantly lower. For instance, Life Insurance has a PE ratio of 12.71 and an EV to EBITDA of 10.03, while Bajaj Finance is at 34.98 and 19.5, respectively. Despite the low valuation ratios, Mahan Industries has shown remarkable stock performance over the past year, with a return of 249.07%, significantly outperforming the Sensex's return of 5.31%. This suggests that while the company may be undervalued based on traditional metrics, market sentiment may be shifting positively.
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