Is Marine Electric. overvalued or undervalued?

As of 17 June 2025, the valuation grade for Marine Electric has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company remains overvalued based on its key financial ratios. The price-to-earnings (PE) ratio stands at an elevated 78.94, while the price-to-book value is 7.51, and the EV to EBITDA ratio is 44.14. These figures suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Marine Electric's PE ratio is significantly higher than that of Ircon International, which has a PE of 25.83, indicating that Marine Electric is priced much more aggressively despite its expensive valuation. Additionally, Rail Vikas, another peer, has a PE of 65.18, further illustrating the disparity in valuation within the industry. While Marine Electric has shown strong returns over the past year, outperforming the Sensex, its current valuation metrics suggest it is overvalued relative to its peers and fundamental performance.