Is Maiden Forgings overvalued or undervalued?

As of 14 October 2025, the valuation grade for Maiden Forgings has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently overvalued based on its financial ratios, with a PE ratio of 18.68, an EV to EBITDA of 9.33, and a ROE of 7.93%. These figures suggest that investors are paying a premium for the stock relative to its earnings and book value.
In comparison to its peers, Maiden Forgings' valuation stands out unfavorably. For instance, JSW Steel, categorized as expensive, has a PE ratio of 54.74, while Tata Steel, rated fair, has a PE of 43.73. Additionally, the EV to EBITDA ratio for Jindal Steel is 11.8, which is higher than Maiden Forgings, yet it is still considered fairly valued. The recent stock performance shows that Maiden Forgings has underperformed the Sensex over the past year, with a return of -8.62% compared to the Sensex's 0.07%, further reinforcing the notion of overvaluation.