Is Mamata Machinery overvalued or undervalued?

As of 26 May 2025, Mamata Machinery's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently deemed overvalued based on its high PE ratio of 32.90, a Price to Book Value of 8.03, and an EV to EBITDA ratio of 25.19. These metrics suggest that investors are paying a premium for the stock relative to its earnings and book value.
In comparison to its peers, Mamata Machinery's PE ratio is lower than that of Thermax Ltd. at 66.31 and BEML Ltd. at 62.34, but still reflects a high valuation in the context of the industrial manufacturing sector. The PEG ratio of 0.00 further complicates the picture, as it indicates no growth expectations priced into the stock. Given these factors, Mamata Machinery is assessed as overvalued, especially considering its recent stock performance, which has outpaced the Sensex over the past week and month, but has underperformed year-to-date.