Is Maiden Forgings overvalued or undervalued?

As of 15 July 2025, the valuation grade for Maiden Forgings has moved from very expensive to expensive. The company is currently considered overvalued, with a PE ratio of 19.26, an EV to EBITDA ratio of 9.18, and a Price to Book Value of 1.64. Compared to peers, JSW Steel is rated fair with a PE of 67.15, while Tata Steel is attractive with a PE of 52.43, indicating that Maiden Forgings is priced higher relative to some of its competitors.
Despite the recent stock performance showing a 17.14% return over the past month, which outperformed the Sensex's 1.79% return, the overall valuation metrics suggest that Maiden Forgings does not justify its current price level. The company’s ROCE stands at 11.59% and ROE at 8.53%, which further supports the conclusion of overvaluation when compared to its peers in the iron and steel industry.