Is Maiden Forgings overvalued or undervalued?

As of 26 June 2025, the valuation grade for Maiden Forgings has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently assessed as overvalued. Key ratios include a PE ratio of 19.61, an EV to EBITDA of 9.29, and a ROCE of 11.59%.
In comparison to its peers, Maiden Forgings' PE ratio is notably lower than that of JSW Steel, which stands at 66.7, and Tata Steel at 52.91, both categorized as fair. Additionally, Jindal Steel, rated as attractive, has a PE of 24.1, further highlighting Maiden Forgings' relative overvaluation. While the stock has shown a strong performance in the short term, with a 1-week return of 17.61% compared to the Sensex's 2.94%, the overall valuation suggests caution for potential investors.