Is Maiden Forgings overvalued or undervalued?

As of 1 October 2025, the valuation grade for Maiden Forgings has moved from very expensive to expensive. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 18.02, an EV to EBITDA of 9.12, and a ROE of 7.93%.
In comparison to its peers, Maiden Forgings' PE ratio is significantly lower than that of JSW Steel, which stands at 54.74, and Tata Steel at 43.09, both of which are classified as attractive. This suggests that while Maiden Forgings is relatively expensive within its sector, it does not offer the growth potential reflected in its peers' valuations. Additionally, the company's stock has underperformed the Sensex over the past year, with a return of -14.09% compared to the Sensex's -3.90%, further reinforcing the view of overvaluation.